FTX Exchange, a subsidiary of FTX Europe bags full regulatory approval to step into Dubai’s “Minimum Viable Product” program of virtual assets. The program will be under the supervision of the Virtual Asset Regulatory Authority, the crypto regulator of the region. With the approval, FTX becomes the very first Virtual Asset Service, provider to receive the MVP license in Dubai. The approval will play a key role in bolstering the growth prospects of the exchange. Sam Bankman-Fried, the CEO of FTX believes that the approval will help FTX ” lead the way in growing the digital asset industry in countries and jurisdictions that possess a robust digital asset framework.”
The What and Why
The approval is indeed a crown with several feathers to it. According to Friedman, “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 requirement of Tier 1 International financial markets.
FTX’s transition process started earlier in the year for the operational MVP license. It acquired the much-sought MVP license after becoming the very first crypto exchange to acquire a provisional license for “complex crypto derivatives dedicated to professional institutional investors in UAE.”
With the MVP license, the platform attains the eligibility to facilitate regulated crypto derivatives in addition to trading services to qualified institutional investors. The VARA MVP license comes with several other benefits as well, letting the platform act as a “clearing house” in addition to operating an NFT marketplace. It also grants FTX the permission to provide custodial services for a particular class of consumers. These services will be subject to certain strict parameters to ensure safety and security in the marketplace.
VARA’s operating model follows a “unique test-scale-adapt principle” according to H.E Helal Saeed Almarri. He is the Director General of Dubai World Trade Centre Authority where VARA is housed. The aforementioned principle ensures growth that is secure and sustainable that will work wonders for the “future economy” of Dubai.