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UAE regulator withdraws FTX license amidst the exchange collapse

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As the FTX fiasco still develops waves in the crypto market and beyond, the Dubai Virtual Assets Regulatory Authority (VARA) hasactually suspended the license which permits FTX to make preparations to service the regional market. 

In an statement published on its authorities site, VARA pointedout that it hasactually withdrawed the approval of FTX MENA’s Minimum Viable Product (MVP) license. Citing the personalbankruptcy filing of FTX-related entities consistingof FTX exchange and Alameda Research, VARA validated that FTX MENA’s license was suspended priorto any customers were exposed.

According to the regulator, FTX MENA was still in the preparatory stage. The authority clarified that the company had not yet got the approval needed to start its operations and onboard customers. In addition, the regulator highlighted that the company had not yet protected a domestic bank account, which is a requirement for virtual property service serviceproviders to start operations in the United Arab Emirates.

The regulator has likewise asked VASPs that engaged with VARA to getinvolved in the regional virtual possession community to offer disclosures. This will enable the regulator to examine the domestic market directexposure and the scale of the contagion within the UAE.

In March, previous FTX CEO Sam Bankman-Fried revealed that FTX got the veryfirst digital possession license in Dubai. In July, the FTX exchange was provided the approval to run under the MVP program and continue with screening and preparations.

Related: The FTX contagion: Which business were impacted by the FTX collapse?

On Mar. 9, a brand-new law that developed a legal structure for crypto in Dubai was released, resulting in the development of VARA. The regulator is entrusted with securing financiers and producing requirements for market governance.

Meanwhile, inspiteof the assault that the previous FTX exchange has brought to the crypto neighborhood, Bankman-Fried is still speaking at a conference hosted by The New York Times. This activated unfavorable reactions amongst crypto neighborhood members slamming law enforcement, with some even comparing Bankman-Fried with Alexey Pertsev, the currently-detained designer of Tornado Cash.

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