Dubai Virtual Assets Regulatory Authority (VARA) has granted an “initial approval” license to crypto company WadzPay, signaling a significant step towards obtaining a Virtual Asset Service Provider (VASP) license. This license enables WadzPay to prepare for virtual asset services under the VASP License for Transfer and Settlement and Broker/Dealer activities.
Dubai’s regulatory landscape continues to evolve in favor of cryptocurrency companies. The latest development involves the Dubai Virtual Assets Regulatory Authority (VARA) granting an “initial approval” license to WadzPay, a prominent crypto firm. This approval is a crucial milestone in WadzPay’s journey towards securing a Virtual Asset Service Provider (VASP) license for their virtual asset services and activities.
WadzPay’s VARA license permits them to initiate preparations for providing virtual asset services related to the VASP License for Transfer and Settlement and Broker/Dealer activities. It’s important to note that this license does not cover WadzPay’s other virtual asset products and services, which cater to both businesses and individual users.
Dubai’s regulatory body has been actively issuing operational licenses to crypto exchanges and firms, solidifying its reputation as a crypto-friendly jurisdiction. To obtain a VARA license in Dubai, crypto exchanges must go through a three-step process, involving provisional approval, an MVP license, and a total market product license.
This move follows the recent granting of a VASP license to the cryptocurrency wallet Backpack, which led to the launch of Backpack Exchange, offering innovative features such as zero-knowledge proof-of-reserves and high-speed order execution. Additionally, Komainu, a joint venture involving Nomura, CoinShares, and Ledger, secured a full operating license from Dubai’s VARA, emphasizing the region’s growing acceptance of the crypto industry.