It was announced on Friday by the cryptocurrency trading platform FTX that it has been awarded a license for a Minimum Viable Product by Dubai’s Virtual Assets Regulatory Authority. This accomplishment makes FTX the first cryptocurrency trading platform to be awarded this certification.
Institutional investors will be able to benefit from the regulated crypto derivatives products and trading services that will be made available by FTX Exchange FZE, which is a subsidiary of FTX’s division in Europe and the Middle East.
These products and services will be made available by FTX Exchange FZE. In addition to this, the cryptocurrency exchange will operate a marketplace for NFTs and provide users with custodial services for their bitcoin holdings.
Sam Bankman-Fried, the Chief Executive Officer of FTX, said that the firm intends to take the lead in building the digital asset industry in countries and jurisdictions that already have a well-established framework for digital assets now that they have been granted this license.
FTX created history at the beginning of this year when it was awarded a provisional license as the first fully regulated exchange to get such an authorization. With this license, the exchange is now ready to try out complex crypto derivatives that are aimed primarily at professional institutional investors in the UAE. These investors are located in the UAE.
As a result of the fact that VARA was able to successfully complete its in-depth regulatory review, the company has now been granted the go-ahead to switch over to an MVP license that allows it to conduct actual operations.
This will make it possible for the Company’s VA Exchange to provide regulated crypto derivatives products and trading services to Qualified Institutional Investors situated anywhere within the area.
In addition, the VARA MVP Licence grants FTX permission to function as a Clearing House, operate an NFT Marketplace and provide Custodial Services within the confines of stringently controlled limits for a certain category of customers. This assures that there will be robust guardrails in place to protect the market and maintain economic stability.