coingeek.com
Bahrain-based digital currency exchange CoinMENA has obtained a virtual asset service provider (VASP) license from Dubai’s regulatory watchdog, authorizing it to offer broker-dealer services to residents.
Dubai’s Virtual Assets Regulatory Authority (VARA) issued a license to CoinMENA following a detailed scrutiny of the exchange’s activities and regularization of processes. One year earlier, CoinMENA’s Dubai subsidiary obtained a provisional license, allowing it to offer broker-dealer service on a limited scale.
The full-scale license allows the exchange to offer retail and institutional customers in Dubai UAE dirhams deposits and withdrawals without the usual limitations plaguing foreign exchange. In line with the founders of CoinMENA, the upgrade from a provisional license will introduce Dubai residents to the perks of “instant money deposits and withdrawals.”
Dina Sam’an, CoinMENA’s co-founder, said the new license has been in the works for the exchange since 2022, with the firm leaning on its cordial relationship with regulators to achieve the feat.
In its home country of Bahrain, CoinMENA holds a category-3 digital currency service provider license from the central bank, giving it the green light to operate in countries forming part of the Gulf Cooperation Council.
“Building strong relationships with local regulators has been a priority for us since day one,” said Sam’an. “We are delighted to have received a license from VARA, which further strengthens our market position and gives confidence to our users and investors.”
For Talal Tabbaa, the new license holds the key to reducing fiat-to-crypto transaction costs to the bare minimum for all classes of investors. Both co-founders cite VARA’s clear regulatory direction as a major factor in the decision to pursue full compliance in Dubai.
“Dubai is at the forefront of crypto growth and innovation, launching various initiatives to push the adoption of the digital asset in the region,” said Tabbaa.
CoinMENA joins the exclusive list of VASPS to have clinched broker-dealer licenses from VARA, following the footsteps of Laser Digital and Fasset. Aware of the stiff competition in Dubai’s digital currency ecosystem, CoinMENA says it will set itself apart through the rollout of innovative offerings.
Change of leadership but same mission
Under the leadership of new CEO Matthew White, VARA says it will “ramp up to full-scale market operation” without lowering its compliance standards for intending service providers.
VARA’s keen adherence to its standards has seen it issue fines on the erring OPNX exchange for violating its promotion rules. The regulator’s revocation of BitOasis‘ license for non-compliance barely four months after obtaining its provisional license has been described as a clear statement of intent by pundits.