Komainu (Custodian), a regulated digital asset custody provider, has received the minimal viable product (MVP) licence from Dubai’s Virtual Assets Regulatory Authority (VARA). This is following the issuance of its provisional approval in July 2022.
Komainu can now offer an approved range of virtual asset related services to institutional investors in Dubai within an internationally benchmarked legislative framework for virtual asset service providers (VASPs) following completion of its readiness requirements.
The transition to an MVP licence, from a provisional approval received earlier this year, means the firm can provide institutional clients in the UAE with Virtual Assets Custodial Services and Virtual Assets Management Services.
Komainu MEA is the first ‘dedicated’ institutional digital asset custodian to receive its MVP licence approval from VARA.
Meanwhile, VARA is the world’s first specialised regulator for the virtual assets sector. Established in March 2022, VARA is responsible by decree for licencing and regulating the virtual asset sector in the Emirate of Dubai, and oversees all licencing requirements and applications for authorisation of virtual asset activities under UAE law.
Helal Saeed Al-Marri, chairman of VARA said, “In this current phase of heightened global appreciation for responsible virtual asset participant, VARA is pleased to onboard our first tradFi VASP – Komainu to join the MVP phase of the regulatory regime. Participation from the VA specialist ventures of deeply respected global financial institutions, allows VARA the opportunity to structure interoperable guidelines and risk mitigation levers for secure market operations.”
Nicolas Bertrand, CEO of Komainu, commented: “Komainu actively works with regulators, partners, and our clients to make sure that our platform and the overall industry is held to the highest of standards to facilitate the wide adoption of virtual assets by institutions. With the full MVP licence now granted by VARA, we look forward to launching our services in the MEA region and assist institutions gain exposure to virtual assets, whilst relying to secure and regulated virtual asset custody services.”
In similar news, in September 2022, global blockchain services provider Binance received the MVP licence from Dubai’s Virtual Asset Regulatory Authority (VARA), following the issuance of its provisional licence earlier in March.
With the transition to a MVP licence, Binance can open a client money account with a domestic bank and provide services to qualified customers, including virtual asset exchange services, conversion between virtual assets and fiat currencies, transfer of virtual assets, custody and management of virtual assets, virtual token offering and trading services, and virtual assets payments and remittance services.