Dubai regulator suspends license of local FTX unit

The Dubai Virtual Asset Regulatory Authority (VARA) has suspended the license issued to FTX’s subsidiary. This is stated on the regulator’s website.

FTX Exchange FZE received approval from VARA in July 2022. The company became the first holder of a permanent cryptocurrency licence under the MVP programme.

According to the statement, the regulator took steps before the exchange began serving local customers. It had not yet obtained the permit required to commence operations and had not opened a bank account locally. The latter is a key requirement for virtual asset service providers in the UAE.

Earlier, temporary licenses from the emirate’s regulator were granted to Binance, OKX and Huobi.

In September, the media reported that VARA issued a preliminary permit to operate the exchange and the cryptocurrency wallet operator Blockchain.com.

In November, FTX Group filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. Sam Bankman-Fried stepped down as CEO.

Subsequently, the Bahamas Securities Commission blocked the assets of FTX Digital Markets and affiliated entities, and also suspended the company’s licence in the country.

Similar steps were taken against the exchange’s local subsidiaries by authorities in Cyprus and Australia.

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