As a subsidiary of FTX Europe, FTX Exchange FZE (FTX) announced that it has received full regulatory approval to participate in Dubai’s ‘Minimum Viable Product’ (MVP) virtual asset program overseen by the region’s crypto regulator – Virtual Asset Regulatory Authority (VARA). Following this, the crypto exchange became the first Virtual Asset Service Provider (VASP) to receive this MVP license to operate its Virtual Asset (VA) Exchange and Clearing House services in Dubai, United Arab Emirates.
FTX CEO, Sam Bankman-Fried (SBF) noted that with this approval, FTX aims to “lead the way in growing the digital asset industry in countries and jurisdictions with a robust digital asset framework.”
He added: “With VARA’s letter of approval, FTX FZE Exchange will operate under a model with strict regulatory oversight and mandatory FATF compliance controls that are in line with the requirements of Tier 1 international financial markets”.
FTX Becomes First Crypto Exchange With MVP Status
Earlier this year, FTX began the transition process to become an operating MVP license. After acquiring the status of the first fully regulated crypto exchange to receive a preliminary license to prepare to appear for “complex crypto derivatives for professional institutional investors in the UAE”, FTX finally received MVP status.
Now the platform is eligible to facilitate regulated crypto derivative products and trading services for qualified institutional investors across the region. In addition, the VARA MVP license also grants FTX permission to act as a “Clearing House, operate an NFT marketplace and provide Custodial Services under strictly prescribed parameters for a specific category of consumers – ensuring strong guardrails for market protection and economic safety”.
HE Helal Saeed Almarri, Director General of the Dubai World Trade Center Authority that houses VARA, said VARA’s business model is based on a “unique test scale-adjustment principle designed for safe and sustainable growth, reflecting Dubai’s commitment to a global interoperable model for the ‘future economy’”.
He added that “the MVP phase, exclusive to selected, responsible international players such as FTX, will enable VARA to carefully structure guidelines and risk mitigation levers for safe commercial operations. We look forward to FTX’s active participation in this next phase of joint global VA innovation.”