Blockchain[.]Com Secures Provisional Approval to Operate in Dubai

Key Takeaways

  • stated it had signed an agreement with Dubai’s crypto regulator Virtual Assets Regulatory Authority (VARA).
  • Recently, By bit, OKX, Binance, and FTX also received VARA approval to set up offices in the Emirate.

Leading London-based crypto firm announced that it had secured provisional approval to operate in Dubai.

On Friday, Blockchain[.]com stated it had signed an agreement with Dubai’s crypto regulator Virtual Assets Regulatory Authority (VARA), and would open an office in the region soon and start hiring.

The United Arab Emirates, especially Dubai, has recently been a favorite expansion spot for various Web3 companies.

Earlier in March, the Emirates of Dubai issued a new law called the Dubai Virtual Assets Law, aiming to regulate the virtual asset industry in the country.

The law balances the need for business growth vis-à-vis virtual assets with the need for its regulation.

Under the new law, the Dubai “Virtual Assets Regulatory Authority” (VARA) is in charge of regulating, supervising, as well as overseeing the virtual asset services in Dubai.

In March 2022, FTX was the first to receive Dubai’s virtual asset exchange license soon after the regulators signed off the virtual assets law and established the Dubai VARA.

Crypto exchange OKX also received a provisional license from Dubai’s regulatory authorities to provide additional services to local investors and financial services providers.

Bybit has received approval to conduct a virtual assets business in Dubai and also plans to set up its global headquarters in the Emirate.

The UAE’s crypto-friendly policies — in contrast to strict regulations in other jurisdictions — have lured the largest crypto firms like Binance and FTX into the country.

The emirates even went a step further on its bet for innovation earlier this year with the launch of the Dubai Metaverse Strategy. 

To attract more Web3 companies, the Dubai Metaverse Strategy will see the city create 40,000 jobs using the metaverse and add over $4 billion to its economy over the next five years.

Dubai is currently focused on being a hub offering the “most advanced ecosystem for the metaverse and as a frontrunner in adopting digital solutions globally”. 

According to a recent survey, 33% of UAE residents say they have invested in cryptocurrencies. With more crypto firms rushing to open their offices in UAE, the country will soon emerge as a global hub for virtual asset trading.

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