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Dubai’s dynamic virtual asset market has witnessed a significant development by awarding a new virtual asset service provider (VASP) license to CoinMENA. The Bahrain-based cryptocurrency exchange has extended its operational capability in the emirate, solidifying its presence in the Middle East’s burgeoning digital asset sector.
Dubai Grants CoinMENA Major Virtual Asset License
CoinMENA FZE, the Dubai subsidiary of the Bahrain-headquartered CoinMENA B.S.C., has achieved a critical milestone by acquiring a VASP license from Dubai’s Virtual Assets Regulatory Authority (VARA) announced on December 12, this development enables the platform to offer virtual asset broker-dealer services in and from Dubai. This is a significant step up from the provisional license the company previously held.
The license empowers CoinMENA to cater to retail and institutional customers within the United Arab Emirates (UAE), facilitating transactions in UAE dirhams. This is expected to streamline the trade process by eliminating the complexities associated with foreign exchange. The move is particularly noteworthy as it aligns with Dubai’s strategy to become a global hub for cryptocurrency and digital asset financial services.
Regulatory Compliance and Competitive Edge
CoinMENA’s co-founders, Dina Sam’an and Talal Tabbaa, emphasized the importance of regulatory compliance in their expansion strategy. They recognized Dubai’s pioneering role in promoting cryptocurrency adoption and innovation in the region. The ability to work closely with VARA is crucial in enhancing service offerings to their users in the emirate, focusing on reducing transaction costs associated with fiat-to-crypto conversions.
CoinMENA has established a regulated presence in the Middle East, holding a category-3 crypto asset service provider license from the Central Bank of Bahrain (CBB) since 2021. This license has enabled the company to operate across the Gulf Cooperation Council member countries. However, the latest license is specific to the UAE, with the Bahrain entity continuing to serve other customers.
The firm’s collaboration with the digital banking platform Zand further signifies its commitment to integrating innovative financial solutions in the region. As a member of an expanding group of active VASP licensees in Dubai, including Fasset and Laser Digital, CoinMENA is gearing up for heightened competition in the market.
A spokesperson for CoinMENA acknowledged the intensifying competitive landscape, indicating that Dubai’s ambition to become a global crypto hub will attract numerous global players. This scenario necessitates strategically differentiating their services and value proposition to maintain a competitive edge.
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