Dubai authorizes full operation of FTX subsidiary FZE via first MVP license
According to Dubai officials, the subsidiary's operations will serve as a regulatory trial for future business services using virtual assets.
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On Friday, FZE, a subsidiary of crypto exchange FTX, was awarded Dubai's first Minimum Viable Product (MVP) license, allowing the exchange to operate fully in the region.
The Virtual Asset Regulatory Authority (VARA) in Dubai has issued the operating license to FZE under the MVP program, which Helal Saeed Almarri, Managing Director of the Dubai WTC Authority, says is designed for safe growth and sustainable in Dubai. For now, the operations of the FTX FZE exchange are in the testing phase and will focus on providing various crypto services.
According to FTX CEO Sam Bankman-Fried, the newly licensed exchange will operate under a model that incorporates regulatory oversight and Financial Action Task Force (FATF) compliance checks aimed at Tier 1 international financial markets. Furthermore, Almarri disclosed that the exchange's operations will serve as a regulatory trial for future trading services using virtual assets.
“The MVP phase, exclusive to certain responsible international players like FTX, will enable VARA to carefully structure the guidelines and risk mitigation levers for secure business operations,” Almarri said, emphasizing the region’s willingness to widely adopt cryptography.
With this license, FTX FZE has been authorized to deploy regulated crypto derivatives and trading services to qualified institutional investors. In addition, the exchange can also act as a clearinghouse, operate a non-fungible token (NFT) marketplace, and provide custody services throughout the region.
In March 2022, FTX was the first to receive Dubai's Virtual Asset Exchange (VAX) license shortly after regulators signed the Virtual Assets Act and established Dubai's VARA. Crypto exchange OKX has also received a provisional license from Dubai regulators to provide additional services to local investors and financiers...
According to Dubai officials, the subsidiary's operations will serve as a regulatory trial for future business services using virtual assets.
New
On Friday, FZE, a subsidiary of crypto exchange FTX, was awarded Dubai's first Minimum Viable Product (MVP) license, allowing the exchange to operate fully in the region.
The Virtual Asset Regulatory Authority (VARA) in Dubai has issued the operating license to FZE under the MVP program, which Helal Saeed Almarri, Managing Director of the Dubai WTC Authority, says is designed for safe growth and sustainable in Dubai. For now, the operations of the FTX FZE exchange are in the testing phase and will focus on providing various crypto services.
According to FTX CEO Sam Bankman-Fried, the newly licensed exchange will operate under a model that incorporates regulatory oversight and Financial Action Task Force (FATF) compliance checks aimed at Tier 1 international financial markets. Furthermore, Almarri disclosed that the exchange's operations will serve as a regulatory trial for future trading services using virtual assets.
“The MVP phase, exclusive to certain responsible international players like FTX, will enable VARA to carefully structure the guidelines and risk mitigation levers for secure business operations,” Almarri said, emphasizing the region’s willingness to widely adopt cryptography.
With this license, FTX FZE has been authorized to deploy regulated crypto derivatives and trading services to qualified institutional investors. In addition, the exchange can also act as a clearinghouse, operate a non-fungible token (NFT) marketplace, and provide custody services throughout the region.
In March 2022, FTX was the first to receive Dubai's Virtual Asset Exchange (VAX) license shortly after regulators signed the Virtual Assets Act and established Dubai's VARA. Crypto exchange OKX has also received a provisional license from Dubai regulators to provide additional services to local investors and financiers...
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