FZE, a crypto exchange subsidiary, was granted Dubai’s first Minimal Viable Product license (MVP) on Friday. This allows the exchange to continue its operations in the region.
Dubai’s Virtual Asset Regulatory Authority issued FZE an operating license under the MVP program. Helal Saeed almarri, director general of Dubai WTC Authority said that the MVP program is intended to ensure Dubai’s sustainable and secure growth. Currently, the FTX FZE Exchange’s operations are still in testing and will focus on offering various crypto services.
Sam Bankman-Fried, CEO of FTX, stated that the new licensed exchange will be operated under a regulatory oversight model and Financial Action Task Force compliance controls. This model is designed to cater to Tier 1 international financial market. Almarri also revealed that the exchange will be used for a regulatory trial of future services using virtual assets.
Almarri highlighted the willingness of the region to embrace crypto.
FTX FZE is now authorized to offer regulated crypto derivatives products to qualified institutional investors. The exchange can also serve as a clearinghouse, manage a marketplace for non-fungible tokens (NFT), and provide custodial service across the region.
FTX received Dubai’s virtual asset trading (VAX) license in March 2022. This was shortly after regulators approved the virtual assets law and created the Dubai VARA. Dubai’s regulatory authorities also granted OKX a provisional license to enable it to provide additional services for local investors and financial service providers.
Dubai and the rest UAE have been moving at a rapid pace towards cryptocurrency adoption this year. With the launch of Dubai Metaverse Strategy, the emirates took their bets for innovation one step further.
Related: Dubai will increase its metaverse efforts by creating 40,000 jobs
Regulators around the globe are setting the standard for cryptocurrency regulation. Financial authorities are keen to approve major exchanges and have expressed their interest in crypto. Although some countries are focusing on tightening controls in certain areas, the innovative approach taken by Dubai and the recent approval of the European Union Markets in Crypto Assets (EUMA) proposal could be a model for other regions.