Crypto exchange FTX’s subsidiary bags first MVP license from Dubai’s Virtual Asset Regulatory Authority
The VARA MVP license allows the crypto exchange to offer crypto derivatives products, custodial, and trading services, act as a clearing house, and operate an NFT marketplace.
Sun, 31 Jul 2022, 21:30 pm UTC
FZE, the subsidiary of billionaire Sam Bankman-Fried crypto exchange FTX, became the recipient of Dubai’s first Minimal Viable Product (MVP) License. The operating license, which was issued by the Virtual Asset Regulatory Authority (VARA), will allow the crypto exchange to operate in the region.
On Friday, FTX Exchange FZE announced that it received the MVP license to operate its crypto exchange and clearing house services in Dubai. The company added that it is the first virtual asset service provider (VASP) to receive the license.
VARA operates under the Dubai World Trade Centre Authority. According to the Dubai WTC Authority Director General H.E. Helal Saeed Almarri, the VARA MVP Program is based on the test-scale-adopt principle designed for secure and sustainable growth in Dubai.
“We are pleased to onboard FTX as the first VASP to enter the operational phase of the VARA MVP Programme…” the director general said. “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. We look forward to FTX's active participation in this next stage of collaborative global VA innovation.”
FTX Exchange FZE is a subsidiary of FTX Europe and the Middle East Division of the crypto exchange FTX, which will offer the exchange suite of products and services to clients in the region. These include options, derivatives, and volatility products as well as tokenized stocks and other services.
FTX is also the first fully regulated exchange to receive a provisional license. After passing VARA’s evaluation, its provisional license now becomes an operational MVP license.
This means that the crypto exchange has the approval to offer regulated crypto derivatives products and trading services to institutional investors in the region. The VARA MVP license also allows the company to operate an NFT marketplace, provide custodial services, and act as a clearing house.
“Our mission is to lead the way in growing the digital asset industry in countries and jurisdictions that possess a robust digital asset framework,” FTX CEO Sam Bankman-Fried said. “With VARA's letter of approval, FTX FZE Exchange will operate under a model which has rigorous regulatory oversight and mandatory FATF compliance controls that are in line with the requirements of Tier 1 international financial markets.”
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