Dubai permits full operation to FTX subsidiary FZE via first MVP licence
Officials from Dubai claim that the subsidiary's operations will act as a regulatory test for upcoming commercial services employing virtual assets
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Dubai granted the first Minimal Viable Product (MVP) licence to FZE, a division of the crypto exchange FTX, on Friday, enabling full operation of the exchange in the area.
The operating licence was granted to FZE by Dubai's Virtual Asset Regulatory Authority (VARA) under the MVP programme, which is, according to Helal Saeed Almarri, director general of the Dubai WTC Authority, "intended for secure and sustainable growth in Dubai." The FTX FZE exchange is currently in the test phase of operations, emphasising various crypto services.
Sam Bankman-Fried, chief executive officer of FTX, said that the recently approved exchange would run on a model that includes regulatory monitoring and Financial Action Task Force (FATF) compliance procedures tailored to Tier 1 international financial markets. It was further disclosed that future commercial services utilising virtual assets would leverage the exchange's activities as a regulatory experiment.
Almarri emphasised the region's readiness for widespread crypto adoption when he said, "The MVP Phase, exclusive to chosen, responsible international players like FTX, will allow VARA to wisely create guidelines and risk mitigation levers for secure commercial operations."
With the licence, FTX FZE is authorised to offer qualified institutional investors regulated crypto derivatives products and trading services. The exchange can also serve as a clearing house, run a nonfungible token (NFT) market, and offer custodial services in the area.
