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In a noteworthy development, Dubai’s Virtual Asset Regulatory Authority (VARA) has granted approval to crypto custodian Komainu, thus enabling the firm to provide services within the region. Komainu, a collaborative venture, has achieved the distinction of becoming the inaugural crypto custodian to receive a full Virtual Asset Service Provider (VASP) license in Dubai. This venture involves Japanese financial institution Nomura, blockchain company Ledger, and crypto investment firm CoinShares. This achievement marks a significant milestone in Dubai’s evolving crypto landscape.
Source:komainu.com
Stages of Regulatory Progression
The regulatory journey within Dubai comprises a four-stage process culminating in obtaining a full license. It begins with the issuance of a provisional permit, followed by the transition to preparatory stages and operationalizing a minimal viable product (MVP) license. Upon successful evaluations, the firm is then bestowed with a full market product (FMP) license.
Komainu’s Dubai Journey and the Significance of Dubai Crypto Custodian Approval
The narrative of Komainu in Dubai commenced with the preliminary approval received in July 2022. Subsequent to this, the firm attained its MVP license in November of the same year, culminating in the achievement of the coveted FMP license. This comprehensive authorization empowers Komainu to provide an array of services. These services encompass custody solutions, institutional staking, custodial staking, and collateral management. Dubai’s dynamic crypto landscape hosts all of these activities.
Sebastian Widmann, Strategy Lead for Komainu, emphasized the robustness of VARA’s regulatory framework. He underscored that entities like Komainu can confidently innovate while operating safely and exploring the untapped potential of digital assets, which encompasses tokenization and DeFi services.
Widmann further conveyed, “We recognize the immense growth potential within the Gulf Cooperation Council countries and envisage an expansion of our local team to meet the burgeoning client demand.” The relocation of numerous global companies to the Emirate further evidence Dubai’s status as a crypto-friendly hub. Notably, Binance, the world’s largest exchange by volume, secured its MVP license. This achievement marked the distinction of Binance becoming the pioneer exchange to obtain a full MVP license within the region. This move further solidified Dubai’s proactive role in the dynamic crypto arena.
In a landscape characterized by innovation and regulatory responsiveness, Dubai solidifies its pivotal role in the global crypto industry. The approval of Komainu as a crypto custodian underscores Dubai’s commitment to a thriving, well-regulated crypto ecosystem. This move significantly shapes the region’s financial evolution.
