A crypto custodian, Komainu, has obtained approval from Dubai’s Virtual Asset Regulatory Authority (VARA) to offer its custody services to clients within Dubai via its Komainu Connect Platform.
This approval marks Komainu as one of the pioneers to receive a complete Virtual Asset Service Provider (VASP) license within the region.
This move is significant as many companies operating in the cryptocurrency sector have shown interest in establishing their presence in Dubai, especially after the establishment of VARA in March 2022.
This regulatory development could further promote the growth of the cryptocurrency industry in Dubai by providing a regulated framework for virtual asset services.
Established in 2018 as a collaborative effort between Nomura, a significant financial institution in Japan, Ledger, a blockchain company, and CoinShares, a firm specializing in cryptocurrency investments, Komainu serves institutional customers, asset managers, banks, liquidity providers, and exchanges.
VARA follows a methodical four-stage licensing procedure. This process involves obtaining a provisional permit, securing preparatory and operational licenses for their minimal viable product (MVP), and ultimately receiving approval for a full market product (FMP) license.
Reaching this final phase of VARA’s licensing journey empowers the company to offer institutional staking and collateral management services within the region through its Komainu Connect platform.
Additionally, VARA gains the capability to provide custody services along with solutions for custodial staking.
In July 2022, it obtained initial authorization for operations in Dubai. Subsequently, Komainu was granted its MVP license by the Dubai regulator in November.
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