“This achievement is the next significant step for Crypto.com in an incredibly important market for our business and industry. With the MVP preparatory license, we look forward to continuing to work with regulators in providing customers the most comprehensive and secure crypto experience.”
Crypto.com has received its MVP Preparatory License from Dubai’s Virtual Assets Regulatory Authority (VARA), said the crypto exchange company serving over 80 million customers worldwide.
VARA, established in March 2022 under the Dubai Virtual Asset Regulation Law, is a legal framework in Dubai that aims to protect investors and set international standards for the virtual assets industry to enable responsible business growth in and from the Emirate.
Crypto.com aims to offer crypto trading in spot, derivatives, OTC
Henson Orser, Chief Executive Officer of VARA, said: “We are pleased to welcome Crypto.com to the MVP Programme preparatory phase. VARA’s regulatory framework will be instrumental in creating and managing a unique, resilient and securely future-proofed ecosystem that delivers a sustainable and thriving global best-in-class VA market with secure cross-border interoperability. As such, participation from credible players like Crypto.com will further our mission of delivering a progressive and future-focused regulatory framework”.
Kris Marszalek, CEO of Crypto.com, commented: “This achievement is the next significant step for Crypto.com in an incredibly important market for our business and industry. With the MVP preparatory license, we look forward to continuing to work with regulators in providing customers the most comprehensive and secure crypto experience.”
Crypto.com received the initial provisional approval from VARA in June 2022. The company then received this MVP preparatory license after a detailed review of its key personnel, governance procedures, Anti Money Laundering/Countering the Financing of Terrorism (AML/CFT) capabilities, Know Your Customer (KYC), and Ultimate Beneficial Owner (UBO) policies and procedures, cross-border safety and security measures, and best-in-class compliance practices.
The MVP Phase will allow Crypto.com to fulfill all pre-conditions required to undertake MVP market operations within the VARA Regime.
Once Crypto.com secures approval to operate in Dubai, the firm will be able to extend its approved suite of duly regulated virtual assets activities spanning a range of crypto exchange services (spot and derivatives), brokerage, margin/leverage trading, and OTC offerings around settlements for institutional investors.
Crypto owners are now 425 million, says Crypto.com report
Earlier this year, Crypto.com published its Crypto Market Sizing Report 2022, providing insights into the actual dynamics within the digital asset market. According to the report, global crypto owners increased by 39% in 2022, rising from 306 million in January to 425 million in December in spite of macro headwinds.
As to the top crypto assets in the market:
- Bitcoin (BTC) owners grew by 20% from 183 million in January to 219 million in December, accounting for 52% of global owners;
- Ethereum (ETH) owners grew by 263% from 24 million in January to 87 million in December, accounting for 20% of global owners.
Amid the ‘crypto winter’, digital assets exchanges have been announcing lay offs. This was the case for Crypto.com, which had to lay off 20% of its corporate workforce, or nearly 1000 people, in order to adapt to current market conditions.
Employees were told the firm was seeking to trim expenses and narrow its focus to more-promising businesses amid the chilly crypto winter. Chief executive Marszalek said several factors played into their decision to reduce headcount. Despite maintaining a strong balance sheet, he claimed, Crypto.com had to navigate economic headwinds and unforeseeable industry events. He explained that they grew ambitiously at the start of 2022, aligning with the broader industry, but the trajectory has now changed with a confluence of negative developments.
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