VARA Lists Licensed VASPs with Fasset and CoinMENA Approved for Broker Services

Amid the recent regulatory actions, Virtual Assets Regulatory Authority (VARA) Dubai has announced a comprehensive public record detailing Licensed Virtual Asset Service Providers (VASPs). The main motive behind the public display is to promote transparency and safeguard consumer interests.

The growing number of unregistered Virtual asset service providers mostly in the cryptocurrency sector is an alarming issue for both the nation and its consumers. VARA’s decision to enforce the license to operate in Dubai has increased security while scrutinizing the virtual asset bodies strictly.

Exchanges Under Virtual Assets Regulatory Authority (VARA)

Currently, as per the official website, the Virtual Assets Regulatory Authority (VARA) has 5 categories under which VASPs are listed. The list has 14 entities that will now registered under VARA to operate within Dubai. Out of the 14, 11 VASP’s status is active while the other three are pending.

Crypto exchanges that are registered under the exchange services column are Trek Lab’s Backpack Exchange, TOKO, and Binance. While Backpack Exchange will only have an exchange service license, Binance, and TOKO have a broker-dealer service license also. This is one of the latest positive news for Binance after US DoJ sanctioned Binance for Money Laundering charges.

Notably, VARA has granted approval for broker services to two prominent entities, Fasset and CoinMENA. While Bybit still has to be listed under a category, Hex Trust has been listed under a Custodian Services license.

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Eighteen VASPs Fined Under Non-Compliance To VARA’s Rule

a recent market notice emphasizes a regulatory deadline that has passed. Entities within the virtual asset domain were mandated to engage in the regulatory license application process with VARA by November 17, 2023.

A total of 18 Virtual Asset Service Providers (VASPs) licensed on the mainland under Dubai’s Department of Economy and Tourism (DET) have incurred fines for non-compliance with VARA’s directives.

These enforcement actions, undertaken to rectify compliance breaches fall under Dubai’s jurisdiction. Additionally, VARA stresses that this is an ongoing process, with additional fines, and enforcement actions. Also, there’s a potential closure of unlicensed VASPs expected if regulatory gaps persist by year-end. Entities wishing to continue offering virtual asset services in Dubai are urged to promptly engage with VARA to avoid further penalties.

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