Dubai grants full operation to FTX subsidiary FZE via its MVP license and the operations will serve as regulatory trials for future commercial services by using virtual assets so let’s read more today in our latest cryptocurrency news.
On Friday, FZE as a subsidiary of the crypto exchange FTX got its first minimal viable product license that allows full operation of the exchange in the region. Dubai grants full operation to the FTX subsidiary under the MVP program which according to Helal Saeed Almarri as the director general of the Dubai WTC Authority, will secure sustainable growth in Dubai. For now, the FTX FZE exchange’s operations are in the test phase and will focus on providing various services.
According to FTX CEO Sam Bankman Fried, the newly licensed exchange will operate under a new model that will incorporate regulatory oversight and the financial action task force compliance controls catering to the Tier 1 international financial markets. Almarri also revealed that the exchange’s operations will be used as a regulatory trial for future commercial services by using virtual assets:
“The MVP Phase, exclusive to select, responsible international players like FTX, will allow VARA to prudently structure guidelines and risk mitigation levers for secure commercial operations.”
With the license, FTZ FZE was approved to deploy regulated crypto derivatives products and trading services to qualified institutional investors, and the exchange will act as a clearing house and operate as an NFT marketplace but also provide custodial services in the region. FTX was the first to receive Dubai’s virtual asset exchange after the regulators signed off the virtual assets law and established the Dubai VARA with the OKX exchange also receiving a provisional license from the Dubai regulatory authorities to provide services to local investors and financial service providers.
Dubai and the rest of the UAE took major steps towards crypto adoption at a fast pace and the emirates event went a step further on the bet for innovation with the launch of the Dubai Metaverse Strategy. The interest of financial authorities in crypto is only setting the tone for regulators across the world. Certain countries are focused on enhancing controls but the experimental approach of Fudai and the green lights from the EU could serve as an example for other regions as well.