10 VASPs Licensed by VARA: CoinMENA FZA, the Latest Entrant in a Growing Cohort
Since its establishment in March 2022, the Virtual Asset Regulatory Authority (VARA) has made significant strides, swiftly issuing 10 VASP licenses encompassing a diverse range of services, from brokerage and dealer activities to custody and exchange services.
Notably, CoinMENA FZE, recognized for its Broker-Dealer Services, secured its VASP license on November 29, marking it as the 10th and latest addition within VARA’s registry of licensed entities.
CoinMENA FZE: Originating in Bahrain, Now Licensed in the UAE
Founded in Bahrain, CoinMENA embarked on its journey as a regulated digital assets platform, holding a category-3 crypto asset service provider license from the Central Bank of Bahrain (CBB).
In November 2021, CoinMENA secured USD 9.5 million in seed funding from various investors. Recently, it achieved a significant milestone by obtaining a broker-dealer services license from VARA in the UAE.
This license authorizes CoinMENA to cater to institutional investors, qualified investors, and retail investors, further solidifying its position as a trusted and licensed player in the evolving crypto landscape.
Binance MVP Operational License
Giant crypto exchange Binance holds an MVP Operational License under the oversight of VARA in Dubai. However, recent developments in the United States, including a significant leadership transition and plea agreements with regulatory authorities, have raised questions about the future regulatory status of Binance in Dubai.
VARA, known for its commitment to stringent oversight, will likely closely monitor these global developments and assess their implications on Binance’s operations within the UAE.
As Binance addresses legal challenges and implements compliance measures, the crypto industry awaits VARA’s response and potential decisions regarding the evolution of Binance’s licensing status in Dubai.
Anticipating Growth: Leading Exchanges in Queue for VARA’s VASP License
In addition to the 10 VASPs already licensed by VARA, the landscape anticipates further expansion with three major exchanges currently in the queue.
These exchanges, namely CRO DAX Middle East (Crypto.com) FZE, OKX Middle East Fintech FZE, and Bybit Fintech FZE, have obtained the MVP preparatory license, signaling their commitment to regulatory compliance.
As these exchanges progress through the preparatory stages, the crypto community eagerly awaits their potential inclusion in the list of licensed VASPs, further contributing to the diverse and dynamic crypto ecosystem in the UAE.
BitOasis: Non-operational on VARA’s Public Registry
VARA has updated the status of BitOasis’ license on its public registry.
This adjustment follows VARA’s issuance of a market alert regarding ongoing supervisory controls and enforcement actions against the company.
Initially granted a conditional MVP License on April 12, 2023, BitOasis failed to meet specified operational conditions within the stipulated time frame, resulting in the suspension of its MVP Operational License.
Navigating On-Ramp and Off-Ramp Processes
While licensed VASPs have demonstrated significant expansion in digital asset exchange services, the specific methods for on-ramping and off-ramping within these platforms remain somewhat undisclosed.
Unlike a mystery, this absence of delicate details about crucial processes – converting fiat currency into digital assets (on-ramp) or vice versa (off-ramp) – presents some ambiguity.
GCEX stands out as the singular VASP to announce the establishment of a client bank account, while CoinMENA collaborates with Zand Bank, sharing this information as a private message to their clients, indicating their readiness to facilitate these crucial processes.
Nonetheless, the ongoing lack of clarity might imply that these VASPs could be in the process of developing or refining their on-ramp and off-ramp functionalities or might rely on established industry-standard methods.
Surge in Licensed Exchanges: A Reflection of Investor Interest
This surge of exchanges signifies growing investor interest in the digital asset space within Dubai’s regulatory framework. In fact, the rise in the number of licensed exchanges not only broadens options for institutional, qualified, and retail investors but also showcases Dubai’s commitment to fostering a competitive yet regulated ecosystem for digital asset exchange services, ultimately solidifying the emirate’s positioning as a robust hub for the industry.
It is worth noting that the cryptocurrency market is experiencing growth due to various factors, such as rising acceptance and adoption among individuals and institutions, ETF approval seems looming in the horizon, and the potential for cryptocurrencies to act as a hedge against inflation.
The Evolving Digital Landscape
As Dubai embraces cutting-edge technologies, VARA’s comprehensive registry marks a significant step forward, positioning the city as a global hub for digital asset management and exchange.
Noteworthy progress has been achieved in regulating the industry, with the UAE leading transformative changes on both fronts in Dubai with VARA and in Abu Dhabi with ADGM.
Recognizing the ongoing journey, there is a commitment to further shaping a secure and compliant virtual asset industry, solidifying UAE’s role at the forefront of these advancements.
