Komainu attained the final step in VARA’s licensing process nearly 10 months after securing its MVP license in November 2022.
Komainu, a joint venture between leading Nomura, and crypto firms CoinShares and Ledger, received a full operating license from Dubai’s Virtual Asset Regulatory Authority (VARA).
The United Arab Emirates (UAE) has opened its door to crypto innovations, supported by federal grants and pro-crypto regulations that aim to nurture entrepreneurs. Attaining a VARA license in Dubai is a three-step process — which requires crypto exchanges to qualify for provisional approval, followed by a minimal viable product (MVP) license, and finally a full market product (FMP) license.
Komainu attained the final step in VARA’s licensing process nearly 10 months after securing its MVP license in November 2022. Some of the other prominent crypto exchanges that have gained similar operational status include Binance, Bybit, Laser Digital Middle East FZE, BitOasis (suspended), OKX, Crypto.com, FTX (revoked) and Huobi.
Komainu’s Head of Strategy, Sebastian Widmann, stressed the importance of a desirable regulatory status for growth in business. Komainu has not yet responded to Cointelegraph’s request for comment at the time of writing.
Komainu is also regulated by the Jersey Financial Services Commission (JFSC), where it remains headquartered. VARA’s licensing allows Komainu to offer its full suite of custody services, including institutional staking and collateral management via its collateral management service, Komainu Connect.
Related: Binance eyes United Arab Emirates as ‘focal point’ for future operations
Dubai recently decided to heavily subsidize commercial licenses to artificial intelligence (AI) and Web3 businesses.
The Dubai AI and Web 3.0 Campus — an aspiring tech hub — announced the decision to subsidize the licenses for companies willing to set up a base in the city. The licenses will be issued by Dubai International Financial Centre (DIFC) as the city eyes an influx of global talent and diversified investors.
