Two of the top 10 cryptocurrency exchanges by volume will expand into new markets, with Crypto.com securing an interim crypto license in Dubai and the launch of FTX in Japan.
Crypto.com announced on June 2 that the Dubai Virtual Assets Regulatory Authority (VARA) had provided the exchange with provisional approval for its virtual asset license, giving the company the green light based on the initial compliance checks.
The exchange said VARA will perform additional due diligence and other mandatory requirements before its full operating license is issued, which it expects to happen in the “short term.”
Crypto.com announced in March that it would set up a regional office in the largest city in the United Arab Emirates (UAE) after enacting new crypto laws and establishing VARA in a bid to establish Dubai as a global crypto hub. crypto.
The UAE’s Minister of State for Foreign Trade, Dr. Thani Al Zeyoudi, said in the announcement that the country is confident that “cryptocurrencies, virtual assets and blockchain will revolutionize the financial services industry. “. He added that he was “attracting businesses to the UAE to build on this vision and enable the technologies of the future to thrive here.”
Launch of FTX Japan
FTX – which overtook Coinbase to become the second-largest centralized exchange by volume – launched FTX Japan to serve its Japanese customers after acquiring the local liquid crypto exchange in February.
Japan has strict rules for crypto exchanges wishing to operate in the country, with the commissioner of crypto regulator the Financial Services Agency (FSA) even admitting that this makes things “rather difficult” for exchanges.
FTX CEO Sam Bankman-Fried said that “Japan is a highly regulated market with a potential market size of nearly $1 trillion” for crypto trading.
Related: Top Centralized Exchanges Increase Market Share in 2022
The expansions are in stark contrast to other major crypto firms which are having to cut staff due to ongoing bearish conditions.
The Gemini exchange reportedly plans to cut 10% of its employees due to unfavorable market conditions, Coinbase also announced in mid-May its hiring slowdown to ensure it can weather the sluggish market.
In late April, crypto-enabled trading platform Robinhood laid off 9% of its workforce with its share price at an all-time low amid a broader market downturn.