According to Dubai officials, the subsidiary’s operation will serve as a regulatory testbed for commercial services using virtual assets in the future.
On Friday, FZE, a subsidiary of crypto exchange FTX, was awarded Dubai’s first Minimum Viable Product (MVP) license, allowing full operation of the exchange in the region. area.
Dubai’s Virtual Assets Authority (VARA) has granted FZE a license to operate under the MVP scheme, according to Helal Saeed Almarri, general manager of the Dubai WTC Authority, which is designed for safe and sustainable growth in Dubai. Currently, the operation of the FTX exchange FZE is in beta and will focus on providing various cryptocurrency services.
According to FTX CEO Sam Bankman-Fried, the newly licensed exchange will operate under a model that combines regulatory oversight and compliance controls with the Financial Action Task Force (FATF) serving the Level 1 international financial markets. In addition, Almarri revealed that the operations of the exchange will be used as a regulatory testbed for future commercial services using virtual assets.
“The MVP phase, dedicated to selected responsible international players such as FTX, will allow VARA to carefully structure risk-reducing principles and leverage for safe commercial operations. secure,” Almarri emphasized the region’s readiness for widespread cryptocurrency adoption.
With the license, FTX FZE has been approved to launch regulated crypto derivatives trading products and services to qualified institutional investors. In addition, this exchange can also act as a clearinghouse, operating a non-mineable token (NFT) market, and providing custodial services across the region.
Back in March 2022, FTX was the first company to receive Dubai’s virtual asset exchange (VAX) license shortly after the regulatory authorities signed into law the virtual assets law and established the Dubai VARA. Cryptocurrency exchange OKX has also received a temporary license from Dubai’s regulators to provide additional services to investors and local financial service providers.
Dubai and the rest of the UAE have been taking steps towards crypto adoption at a rapid pace this year. The emirates went a step further when betting on innovation earlier this year with the launch of the Dubai Metaverse Strategy.
The interest of financial authorities in cryptocurrencies and the approbation of major exchanges is setting the tone for regulators across the world. While certain countries are focused on tightening controls, the experimental approach of Dubai and the green light was recently given to the European Union Markets in Crypto Assets proposal could serve as a reference for other regions.