The Dubai Virtual Assets Regulatory Authority (VARA) Grants Initial Approval License to WadzPay
The Dubai Virtual Assets Regulatory Authority (VARA) has given WadzPay an “initial approval” license, marking a significant step for the crypto firm in its journey to obtain a Virtual Asset Service Provider (VASP) license. With this license, WadzPay can begin preparations to offer virtual asset services and activities under the VASP License for Transfer and Settlement and Broker/Dealer activities. However, the VARA license does not permit the company to provide its other virtual asset products and services. WadzPay’s platform caters to both businesses and individual users.
Dubai Strengthens Its Position as a Crypto-Friendly Jurisdiction
Dubai has been actively issuing operational licenses to crypto exchanges and firms, solidifying its status as a crypto-friendly jurisdiction with comprehensive regulations for VASPs. To obtain a VARA license in Dubai, crypto exchanges must go through a three-step process that includes qualifying for provisional approval, obtaining a minimal viable product (MVP) license, and finally acquiring a total market product license.
Other Crypto Firms Granted VARA Licenses
In addition to WadzPay, several other crypto firms have also received VARA licenses. Backpack, a cryptocurrency wallet, obtained a VASP license in October, leading to the launch of Backpack Exchange. The license restricts Backpack’s operations to crypto exchange services within Dubai. Komainu, a joint venture between Nomura, CoinShares, and Ledger, secured a full operating license from VARA after 10 months of the licensing process. Laser Digital, the cryptocurrency division of Nomura, obtained an operating license in August through its subsidiary Laser Digital Middle East FZE.
Hot Take: Dubai’s Crypto-Friendly Regulations Attracting Global Players
Dubai’s Virtual Assets Regulatory Authority (VARA) continues to attract global crypto players with its comprehensive regulations and licensing process. The recent issuance of an “initial approval” license to WadzPay signifies the authority’s commitment to supporting the growth of virtual asset services in the region. By granting licenses to various crypto firms, including Backpack, Komainu, and Laser Digital, Dubai is solidifying its position as a leading crypto-friendly jurisdiction. These developments not only benefit the licensed companies but also contribute to Dubai’s emergence as a global hub for digital assets and blockchain technology.
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