Dubai's VARA Grants Crypto Exchange CoinMENA License for Broker-Dealer Services
Summary:
Dubai's Virtual Assets Regulatory Authority (VARA) has granted a license to CoinMENA, a Bahrain-based cryptocurrency exchange. The license allows CoinMENA to offer virtual asset broker-dealer services in Dubai, and provide both individual and institutional users in the UAE the option to deposit and withdraw in UAE dirhams. This development aims to make Dubai a global hub for digital asset services and comes a year after CoinMENA received a provisional license from the same regulator.
The Virtual Assets Regulatory Authority (VARA) in Dubai has awarded a license to CoinMENA, a cryptocurrency exchange based in Bahrain. The license allows the Dubai subsidiary of CoinMENA B.S.C., known as CoinMENA FZE, to offer virtual asset broker-dealer services in and from the emirate. This development comes a year after the platform had received a provisional license from the same Dubai regulator. CoinMENA also has the green light to offer both individual and corporate users in the UAE the option to deposit and withdraw in UAE dirhams, eliminating any complications due to foreign currency exchange.
The co-founders of CoinMENA, Talal Tabbaa and Dina Sam’an echoed in a statement that clear-cut regulations from VARA have positioned Dubai as a rising global epicentre for digital asset and cryptocurrency financial services. Sam’an has emphasised that having a solid rapport with local regulators has always been a priority for their company. Tabbaa also added that Dubai's forward-thinking approach to cryptocurrency and the innovative efforts to boost digital asset adoption in the region would facilitate CoinMENA's ability to serve its customers better both in retail and at the institutional level.
The exchange also disclosed an existing partnership with Zand, a digital banking platform. CoinMENA has been a regulated entity licenced by the Central Bank of Bahrain, holding a category-3 crypto asset service license since 2021. This license permits CoinMENA to offer services to users in the Gulf Cooperation Council member countries.
CoinMENA clarified to Cointelegraph via email that the recently obtained license would only impact users based in the UAE, and users outside of the UAE will continue to be served by their Bahrain entity. The spokesperson also hinted that competition is bound to intensify as Dubai aims to be a leading crypto hub. Along with CoinMENA, other active license holders for crypto broker-dealer services include Fasset and Laser Digital, both digital asset firms.
Published At
12/13/2023 4:13:56 PM
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