Dubai’s Inviting Crypto Policy
Of the leading ten crypto exchanges in the world, two are taking up new markets. Crypto.com has got a provisional license for its crypto operations in Dubai. While FXT, on the other hand, has launched in Japan.
Crypto.com made an announcement on the 2nd of June that Dubai’s VARA gave it provisional approval to operate. The exchange got a Virtual Asset License to begin operation since it passed the preliminary compliance check.
The crypto exchange further said VARA will continue to do due diligence with other necessary requirements. All of these will be completed before the full operation license will be issued in a short time.
Crypto.com had announced its intention, in March, to open a regional office in the UAE. This came after Dubai passed a law to enhance the usage of crypto and subsequently created VARA. The general intention of the Dubai government is to make the city a global crypto hub.
Thani al-Zeyoudi, the UAE’s Minister of State for Foreign Trade spoke after the law was passed. He stated that the UAE believes digital assets will refresh the financial service market. He stated further that companies will be attracted to the country to establish its vision.
FXT Hits Japan
FXT has been doing really well in the market in recent times. It surpassed Coinbase in ranking to have the second-largest volume among centralized exchanges.
The company has now set up its office in Japan to better serve its clients based in the country. This move followed the acquisition of the Japan-based crypto exchange, Liquid, in February.
Japan has very stringent terms for crypto exchanges that wish to operate there. The country’s FSA Commissioner in charge of regulating crypto agrees the terms are tough.
Sam Bankman-Fried, the FXT CEO, stated that Japan is highly regulated. He added that the country has a potential financial size of a trillion dollars in crypto.
The expansion of Crypto.com and FXT are in opposite reality to most other crypto companies. A lot of them are reducing their staff strength as a result of the market downturn.
An example is the Gemini exchange which was reported to have a downsizing plan. It is said the exchange plans on a 10% staff cut due to bad market situations. Coinbase also said it was slowing down on hiring for now to observe market conditions.
Robinhood dismissed 9% of its staff at the end of April. Its stock price also hit an all-time low mark in reaction to the market’s slide.