Dubai Virtual Assets Regulatory Authority Grants Initial Approval to WadzPay, Others Follow Suit
Summary:
Crypto firm WadzPay has received an "Initial Approval" license from the Dubai Virtual Assets Regulatory Authority, paving the way for a Virtual Asset Service Provider license. Dubai's crypto-friendly regulations have led to numerous other firms, including Backpack, Laser Digital, and Komainu, receiving various license types, allowing them to offer regulated crypto services in the region. These steps underscore the accelerating adoption of digital assets in Dubai's financial landscape.
Crypto company WadzPay has been given an "Initial Approval" license from the Dubai Virtual Assets Regulatory Authority (VARA). WadzPay's next step is to secure a Virtual Asset Service Provider (VASP) license to offer virtual asset services and activities. The VARA license permits WadzPay to prepare for the provision of these services restricted to Transfer and Settlement and Broker/Dealer activities. The company cannot use the license for any other virtual asset products. The platform provides services for both businesses and individual users.
VARA has been issuing various forms of operational licenses to crypto firms and exchanges over the past months, making Dubai a favourable place for crypto operations thanks to its regulations and comprehensive guidelines for Virtual Asset Service Providers. To get a VARA license, crypto exchanges need to pass three stages - provisional approval, obtaining a minimal viable product license, and a total market product license.
In October, crypto wallet Backpack was given a Virtual Asset Service Provider license, culminating in the launch of Backpack Exchange. However, Backpack’s VARA license only permits it to provide crypto exchange services within Dubai. The exchange incorporates advanced solutions such as zero-knowledge proof-of-reserves, multi-party computation for custody, and high-speed order execution.
Komainu, a collaboration of Nomura and cryptocurrency firms CoinShares and Ledger, also received a full operating license from Dubai’s VARA. Having secured its Minimum Viable Product license last year, Komainu has now successfully navigated through the entire licensing process.
Laser Digital, a cryptocurrency division of finance leader Nomura also received an operating license from VARA. This development signifies Nomura’s efforts to expand into the digital asset space. The company’s Dubai-based subsidiary, Laser Digital Middle East FZE, revealed its Virtual Asset Service Provider license, enabling it to offer brokerage, virtual asset management, and investment services within Dubai. This follows Binance securing an operational minimum viable product license from VARA to provide local cryptocurrency exchange and virtual asset broker-dealer services.
Published At
11/2/2023 1:36:20 PM
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