While the FTX debacle is still creating waves in the crypto industry and beyond, the Dubai Virtual Assets Regulatory Authority (VARA) has suspended the license that allows FTX to prepare to serve the market local.
In an ad job On its official website, VARA mentioned that it has revoked FTX MENA’s Minimum Viable Product License (MVP) approval. Quoting the filing for bankruptcy of FTX-related entitiesincluding FTX Exchange and Alameda Research, VARA confirmed that FTX MENA’s license was suspended before any clients were exposed.
According to the regulator, FTX MENA was still in the preparatory phase. The authority clarified that the company has not yet received the required approval to start operations and onboard customers. Additionally, the regulator pointed out that the company has yet to obtain a domestic bank account, which is a requirement for virtual asset service providers (VASPs) to start operations in the UAE.
The regulator has also asked VASPs that have engaged with VARA to participate in the local virtual asset ecosystem to provide insights. This will allow the regulator to assess domestic market exposure and the extent of contagion within the UAE.
In March, former FTX CEO Sam Bankman-Fried announced that FTX had received the first digital asset license to Dubai. In July, FTX was approved to operate under the MVP program and carry out tests and preparations.
On March 9, a new law creating a legal framework for crypto in Dubai was published, resulting in the creation of VARA. The regulator is responsible for protecting investors and creating standards for industry governance.
Meanwhile, despite the onslaught that former exchange FTX has brought to the crypto community, Bankman-Fried is still speaking at a conference hosted by The New York Times. This triggered negative responses among members of the crypto community criticizing law enforcement, with some even comparing Bankman-Fried to Alexey Pertsev, the currently owned developer from Tornado Cash.