The Dubai Virtual Assets Regulatory Authority (VARA) has granted an “initial approval” license to crypto firm WadzPay, marking a significant milestone in the company’s pursuit of a Virtual Asset Service Provider (VASP) license for virtual asset services and activities.
Under the VARA license, WadzPay is now authorized to commence preparations for providing virtual asset services and activities related to Transfer and Settlement and Broker/Dealer activities.
However, it’s important to note that this license does not permit the company to offer any of its other virtual asset products and services. WadzPay’s platform caters to both businesses and individual users.
Dubai’s regulatory environment for cryptocurrencies has been evolving rapidly, with various operational licenses being issued to crypto exchanges and firms in recent months.
This development has solidified Dubai’s reputation as a crypto-friendly jurisdiction, thanks to its regulatory body and comprehensive rulebooks for VASPs.
The process to obtain a VARA license in Dubai involves three stages: provisional approval, a minimal viable product (MVP) license, and a total market product license.
In October, the cryptocurrency wallet Backpack received a VASP license, leading to the launch of Backpack Exchange.
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However, the VARA license granted to Backpack limits its operations to crypto exchange services exclusively within Dubai, excluding its other virtual asset offerings.
Notably, the newly introduced Backpack Exchange incorporates advanced features such as zero-knowledge proof-of-reserves, multi-party computation for custody, and high-speed order execution.
Komainu, a joint venture involving Nomura, CoinShares, and Ledger, also achieved a full operating license from Dubai’s VARA.
Komainu completed this final step in VARA’s licensing process approximately 10 months after securing its MVP license in November 2022.
Furthermore, Laser Digital, the cryptocurrency division of financial giant Nomura, secured an operating license from VARA in August.
This move is a strategic part of Nomura’s efforts to establish a presence in the digital asset sector.
Through its subsidiary, Laser Digital Middle East FZE, based in Dubai, the company unveiled its VASP license, allowing it to offer brokerage, virtual asset management, and investment services in the emirate.
It’s worth noting that Binance also obtained an operational MVP license from VARA, enabling it to operate cryptocurrency exchange and virtual asset broker-dealer services locally, further contributing to Dubai’s growing crypto ecosystem.
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