December 5, 2022

UAE authorities distance themselves from bankrupt FTX

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UAE authorities distance themselves from bankrupt FTX

The Dubai Virtual Assets Regulatory Authority (VARA) has suspended the license that allowed FTX to prepare to serve the local market.

Supervisory Authority of the United Arab Emirates,Referring to the bankruptcy filing of FTX-related entities, including Alameda Research, confirmed that the license of FTX subsidiary MENA was suspended before the exchange began serving local users. According to representatives of the regulator, the registration of FTX MENA is still at the preparatory stage.

The authorities explained that the company had not yet receivedapproval required to start operations in Dubai and did not open a local bank account, which is the main requirement for Virtual Asset Service Providers (VASPs) in the UAE.

The regulator called on local crypto companies to publish data on the balance and reserves of cryptocurrencies. This will allow the regulator to assess the extent of the impact of the FTX collapse on the UAE domestic market.

Last week, the Australian Securities and Investments Commission suspended the financial operations license of the local subsidiary of the bankrupt crypto exchange FTX.