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Dubai has become one of the primary hubs for cryptocurrency transactions because of having a clear cryptocurrency regulatory framework. The region has attracted many cryptocurrency companies that have obtained operating licenses, with the recent entrants being Blockchain.com.
Blockchain.com obtains a provisional license in Dubai
A report by Reuters said that Blockchain.com had received a provisional license to operate in Dubai. Blockchain.com has now become the latest virtual asset company that has expanded into the Gulf region as the region continues attracting blockchain technologies and innovation.
Blockchain.com is a cryptocurrency company that runs a cryptocurrency exchange and operates a cryptocurrency wallet. On Friday, Blockchain.com announced that it had secured a licensing agreement with Dubai’s financial market regulator, the Virtual Assets Regulator Authority (VARA).
With this approval, Blockchauin.com will soon launch an office in Dubai, and it will start hiring staff to operate from the office, which will boost its local market in the region. The rising number of crypto firms in Dubai makes it one of the most attractive markets for crypto firms, as the demand for these assets is expected to increase.
On the other hand, Blockchain.com is also looking at expanding its presence in other regions, including Europe. The company recently announced that it had obtained a virtual asset provider license in Italy. Like Dubai, Italy has attracted multiple crypto companies with a friendly regulatory framework.
Crypto regulatory framework in Dubai
The United Arab Emirates has become one of the key hubs for crypto activities. The friendly regulatory framework has attracted all forms of cryptocurrency business in the region as competition for digital innovation increases worldwide.
Towards the end of August last year, Dubai regulators launched new cryptocurrency marketing rules. The regulatory clarity aimed to protect the rising number of investors flocking towards acquiring crypto investments.
VARA, the main regulatory body in Dubai, is tasked with providing the guidelines that govern multiple crypto services, such as marketing, advertising, and promotion of digital assets. The guidelines offered by VARA mandate that all local virtual asset service providers, such as advertising platforms, ensure they provide clear information about what it entails to invest in crypto assets.
According to VARA, crypto companies promoting their products and services should remain factual and ensure that they do not provide any promotional information that will mislead potential investors.
The VARA guidelines on crypto advertisements have broad coverage because they cover communication related to all virtual assets. Additionally, the companies required to comply with these advertising guidelines include media search platforms, media websites, and online and offline publishing platforms targeting the Dubai crypto market.
Dubai has stood out as the main hub for crypto business in the UAE. The country adopted the first law targeting the digital asset market in March. It was through this law that VARA was established as the regulatory body for the Dubai crypto sector. The UAE has also given virtual asset licenses to some of the largest cryptocurrency companies, such as Binance and FTX.
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- FTX secures full operational license in Dubai
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