Dubai Crypto Assets Regulatory Authority (VARA) has granted a “preliminary approval” license to crypto company WadzPay. This step has allowed the company to take an important step in obtaining a Crypto Asset Service Provider (VASP) license for its crypto asset services and operations. According to the announcement, the VARA license given to WadzPay allows them to start preparations for the next step, which is obtaining the VASP license.
How is the Process Progressing in Dubai?
VARA license allows the company to offer its other crypto asset products and services to investors. The company’s platform provides various services to businesses and individual users. In recent months, the regulatory authority in Dubai has been granting various operational licenses to crypto exchanges and companies at different stages.
This strengthens Dubai’s position as a crypto-friendly jurisdiction with comprehensive laws for regulatory bodies and Crypto Asset Service Providers (VASP). Obtaining a VARA license in Dubai consists of a three-stage process that requires temporary approval for crypto exchanges, a Minimum Viable Product (MVP) license, and a Total Market Product license.
Support for the Crypto Sector from Dubai
Last month, the crypto wallet Backpack also received a VASP license, allowing Backpack Exchange to meet users for the first time. Backpack’s VARA license limits its operations to crypto exchange services in Dubai, excluding other crypto asset offerings.
Komainu, a joint venture between crypto companies CoinShares and Ledger with Nomura, a financial giant, has obtained a full business license with Dubai’s VARA license. Komainu completed the final step in the licensing process of VARA, approximately 10 months after obtaining the MVP license in November 2022.
Laser Digital, the crypto currency division of financial giant Nomura, received a business license from Dubai’s Crypto Assets Regulatory Authority in August. This step is part of Nomura’s efforts to establish a presence in the crypto asset sector. The company announced that it has obtained a VASP license, allowing it to offer crypto asset management and investment services through its Dubai-based subsidiary, Laser Digital Middle East FZE.
