Last Friday, FZE, a subsidiary of cryptocurrency exchange FTX, was awarded the first Minimum Product (MVP) license in Dubai, allowing the exchange to fully operate in the region.
The Virtual Asset Regulatory Authority (VARA) of Dubai has issued the operating license to FZE under the Minimum Products Program, which is designed for safe and sustainable growth in Dubai according to Helal Saeed Al Marri, Director General of the Dubai World Trade Center Authority.
Currently, FZE operations are in the testing phase and will focus on providing various cryptocurrency services, Coin Telegraph reported.
According to Sam Bankman-Fried, CEO of FTX, the newly licensed exchange will operate on a model that includes the regulatory oversight and compliance controls of the Financial Action Task Force (FATF) that caters to Tier 1 international financial markets.
In addition, Al-Marri revealed that the exchange's operations will be used as a regulatory experiment for future trading services using virtual assets.
Al Marri said: The MVP phase, exclusive to select responsible international players such as FTX, will allow the Virtual Asset Regulatory Authority to establish prudent guidelines and risk mitigation levers for safe trading operations.
Through the license, FZE is approved to publish regulated crypto derivatives products and trading services to qualified institutional investors. Additionally, the exchange can also act as a clearinghouse, operate a non-fungible token market (NFT), and provide custody services across the region.
In March 2022, FTX was the first to obtain a Virtual Asset Inch (VAX) license in Dubai shortly after regulators signed the Virtual Assets Law and established the Dubai Virtual Asset Regulatory Authority.
Crypto exchange OKEx has also received a temporary license from the regulatory authorities in Dubai to provide additional services to local investors and financial service providers.
Dubai and the rest of the UAE have taken steps towards cryptocurrency adoption at a rapid pace this year. The UAE took a step forward in its innovation bet earlier this year with the launch of the Dubai Metaverse Strategy.
