The latest development sees the Dubai Virtual Assets Regulatory Authority (VARA) granting an “initial approval” license to WadzPay, positioning the crypto firm on the path to securing a full VASP license for virtual asset services and activities.
Dubai, a crypto-friendly jurisdiction, continues to make strides in bolstering its regulatory landscape for Virtual Asset Service Providers (VASPs).
The VARA License and Dubai’s Three-Step Process
The VARA license obtained by WadzPay is a crucial milestone. It will further empower the company to commence preparations for offering virtual asset services and activities. This includes the VASP License for Transfer and Settlement and Broker/Dealer activities.
Notably, the license doesn’t extend to other virtual asset products and services offered by WadzPay’s platform, which caters to both businesses and individual users.
Dubai’s regulatory framework for crypto exchanges follows a meticulous three-step process. Companies must first qualify for provisional approval. This is followed by obtaining a minimal viable product (MVP) license, and ultimately securing a total market product license. This approach has solidified Dubai’s reputation as a robust and supportive environment for crypto-related businesses.
Other Players in the Game
WadzPay joins the ranks of other crypto entities that have successfully navigated Dubai’s regulatory landscape. Backpack, a cryptocurrency wallet, recently obtained a VASP license, leading to the launch of Backpack Exchange. Komainu, a joint venture involving Nomura, CoinShares, and Ledger, received a full operating license after a 10-month journey through VARA’s licensing process.
Laser Digital, the cryptocurrency division of financial giant Nomura, secured its operating license from VARA in August. This strategic move aligns with Nomura’s broader efforts to establish a solid presence in the digital asset sector. Laser Digital’s license covers brokerage, virtual asset management, and investment services within the emirate.
Notably, Binance’s operational MVP license from VARA paved the way for Laser Digital’s recent success. This collaboration illustrates the interconnected nature of the crypto ecosystem in Dubai, with each player contributing to the growth and maturation of the market.