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Crypto.com receives temporary crypto licence in Dubai, while FTX starts operating in Japan

Crypto.com will have to meet further standards before receiving its complete licence in the "near term." According to FTX, adding the move will allow it to deal "directly with Japanese regulators."

Two of the top ten most liquid crypto exchanges are all set to enter new markets, with Crypto.com gaining a temporary crypto licence in Dubai and FTX starts operating in Japan. On June 2, Crypto.com reported that the Dubai Virtual Assets Regulatory Authority (VARA) granted the exchange provisional approval of its virtual asset licence, allowing the firm to proceed based on preliminary compliance inspections. According to the exchange, VARA will do more due diligence and other mandatory criteria before receiving its complete operating licence, which it hopes to get in the “near term.”

Crypto.com announced in March that it will open a regional office in Dubai, the largest city in the United Arab Emirates (UAE), following the passage of new crypto regulations and the establishment of VARA, with the objective of making Dubai a global crypto hub.

Thani Al Zeyoudi, the UAE’s State Minister for Foreign Trade, stated in the statement that the country thinks “cryptocurrencies, virtual assets, and blockchain will transform the financial services industry.” He went on to say that “attracting companies to the UAE to build on this vision and enable technologies of the future to flourish here.”

VARA will do more due diligence and meet other mandatory standards, according to the exchange, before receiving its complete operating licence, which it hopes to happen “shortly.” After acquiring the local Liquid crypto exchange in February, FTX, which has beat Coinbase to become the second-largest centralised exchange in terms of volume, has opened FTX Japan to serve its Japanese consumers.

Japan has stringent regulations for crypto exchanges wishing to operate there, with the commissioner of the country’s crypto regulator, the Financial Services Agency (FSA), acknowledging that it makes things “very difficult” for exchanges.

According to FTX CEO Sam Bankman-Fried, “Japan is a highly regulated market with a potential market size of approximately $1 trillion.” The growth contrasts sharply with other large crypto enterprises who have been forced to eliminate workers as a result of the current bear market.

Due to the poor market circumstances, Gemini exchange plans to lay off 10% of its personnel, while Coinbase said in mid-May that it would suspend recruiting to guarantee it could weather the storm. With its stock price at an all-time low as part of a larger market collapse, the crypto-friendly trading platform Robinhood laid off 9% of its workers at the end of April.

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Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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