On July 29th, FZE, the sister company of crypto platform FTX, received the first MVP (Minimal Viable Product) license to operate in Dubai. This would give FZE permission to operate fully in the country.
FZE Receives MVP License To Operate Fully
The MVP license was issued by the country’s regulator, the VARA (Virtual Asset Regulatory Authority), as part of the MVP initiative. As stated by Helal Saeed Almarri, the DG at Dubai’s WTC, the regulator made the initiative to secure sustainable growth in the country.
Before now, the operation and activities of the FZE were at the testing stage. Also, it will focus on providing users with different crypto assets.
Sam Bankman-Fried, the CEO of FTX, said the FZE exchange would operate using a model that complies with the FATF (Financial Action Task Force) and other regulatory oversight. This is what the company follows when working with Tier 1 markets.
According to Almarri, the regulator will check and follow the activities of the exchange. This is because it is a regulatory test for future services that use virtual assets.
“The MVP stage is mainly to select international players that are responsible such as FTX. The stage will allow the regulator to properly structure guidelines and risk control levers for better operations,” the director general added.
FZE To Provide Various Services To Users
Additionally, the latest license would allow FZE to provide institutional investors trading services and crypto products. Also, it can become a clearing house, provide custodian services, and then operate an NFT market.
In March, the FTX crypto exchange received Dubai’s virtual asset exchange license. This was just after the nation’s regulators signed the digital assets law and formed THE VARA.
Also, the OKX exchange recently obtained a provisional license from the regulator. It would allow the firm to provide more services to investors and financial institutions.
Furthermore, Dubai and other areas of the United Arab Emirates have been gearing towards crypto adoption in 2022. The Emirates launched the Dubai Metaverse Strategy at the start of the year.
Also, the interest of the country’s regulators in crypto and the approval of exchange firms are remarkable. Several exchange firms have entered Dubai lately.
Meanwhile, several countries are bent on issuing strict regulations. However, Dubai has applied an experimental approach to monitor the firm’s activities before awarding a full license. This is a great example for other countries in the crypto space to emulate.