The Commercial Bank of Dubai (CBD), has launched a dedicated accounts for Virtual Asset Service Providers (VASPs) to manage client money and regulatory prudential requirements, in compliance with the latest regulations issued by the Central Bank of UAE and the Dubai Virtual Assets Regulatory Authority (VARA). The first VASP to be onboarded is Laser Digital a crypto broker and investment service provider, a subsidiary of Japanese Nomura.
As per the press release, this pioneering initiative underscores CBD’s commitment to fostering innovation and supporting the growing digital asset ecosystem in the region.
CBD has taken proactive steps to offer specialized accounts that meet the unique requirements of VASPs, while adhering to the regulatory framework established by VARA. CBD onboarded Laser Digital as the first VASP to benefit from its services.
CBD’s banking services for VASPs are fully compliant with VARA regulations, ensuring that VASPs operate within the legal and regulatory framework of Dubai. The segregation of client funds into multiple accounts ensures reduced risk and enhances operational efficiency.
Dr. Bernd van Linder, Chief Executive Officer of Commercial Bank of Dubai, commented on the launch, stating, “As the financial landscape continues to evolve with the rise of digital assets, CBD remains at the forefront of innovation by providing tailored solutions that meet the needs of our diverse clientele. The introduction of core banking services for VASPs aligns with our strategic vision to support the digital economy and foster a robust regulatory environment that promotes growth and stability. As the bank that is backing the nation’s ambition, our efforts also contribute to promote the Emirate as an international hub for Virtual Assets and develop the digital economy in the Emirate.”
By offering these specialized accounts, CBD aims to attract more VASPs to Dubai, encouraging companies operating in this field to base their business in the Emirate.
Jez Mohideen, CEO of Laser Digital commented: “This launch demonstrates CBD’s commitment to encouraging the growth and progress of the virtual asset ecosystem in the UAE. We’re honored and grateful to be the first VASP to benefit from this service and we look forward to continued collaboration.”
