The regulators of Dubai have decided to permit FZE to start operating on their soil. The associate firm’s activities would be an example of how regulated commercial services involving crypto would be conducted henceforth.
FZE Receives MAVA License To Operate In Dubai
FZE, a small crypto firm controlled by FTX exchange, received the Minimal Viable Product (MVP) permit from Dubai’s regulators. With this license, FZE can legally perform any virtual commercial services in the country.
The founder of FTX, Sam Bankman-Fried, affirmed that the Financial Action Task Force would monitor the commercial cryptocurrency services of the underlying firm. In an interview, the head of Dubai WTC Authority, Helal Almarri, stated that the MVP scheme they created was to secure and sustain Dubai’s economic growth.
He added that they are still monitoring the crypto activities of the FZE firm. Almarri reported that the authorities plan to use it as a reference for other firms that might want to offer similar services in the future.
He continued that the MVP scheme allows the regulators overseeing crypto affairs in the country to meticulously prepare an efficient regulatory framework to reduce the risk involved in crypto transactions. Almarri hinted that the government is willing to fully adopt cryptocurrency; however, not without a scheme that reduces its risk.
FTX Exchange Keeps Expanding Its Scope In Dubai
Encouraged by the newly acquired license, FZE is set to launch controlled crypto-related services and products. It targets both institutional and retail investors who are interested in the region.
Furthermore, the crypto firm may engage in nonfungible token transactions and offer custodial activities. FTX crypto exchange seems to be enjoying favors from the Dubai authorities.
For instance, FTX was the first crypto exchange to receive the Virtual asset exchange permit issued by the Dubai crypto regulatory body, VARA. It happened in March this year, shortly before the OKX exchange received its ticket to offer local crypto services.
More than ever before, the entire United Arab Emirates seems to be taking positive steps towards crypto since 2022 began. They hinted at their stance when introducing the Dubai Metaverse Strategy this year.
Across the world, financial authorities in different countries hold different stances on crypto. Many outrightly ban the activities of exchanges in the country, while others put them on probation.
Many countries are enacting strict regulations on crypto; however, Dubai seems to have a different thought. Dubai’s regulators are using the experimental approach toward crypto, and they recently granted the proposal of the European Union on crypto markets.