The Dubai Virtual Assets Regulatory Authority (VARA) has suspended the license that allowed FTX to prepare to serve the local market.
The United Arab Emirates watchdog, citing 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 has not yet received the approval required to start operations in Dubai and has not opened 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.