Japanese Nomura owned crypto custodian, Komainu first to receive full VASP license by VARA in UAE

Japanese Nomura owned crypto custodian, Komainu first to receive full VASP license by VARA in UAE

Komainu, a regulated digital asset custody provider created by Japanese investment bank Nomura, digital asset manager CoinShares and digital asset security company Ledger. has been granted a full virtual assets service provider license by Dubai’s virtual asset regulatory authority in UAE. The license was issued on August 18th 2023.

Prior to that Komainu had received in July 2022 the MVP license from VARA.

Komainu will be able to serve qualified retail and institutional clients both as a crypto asset custodian and offer custodial staking services. 

“We see tremendous opportunities to scale our business here amid a significant boom in assets driven by fund formation and exchange launches,” said Sebastian Widmann, Komainu’s Head of Strategy. “Dubai has a vibrant digital asset ecosystem and impressive talent pool, and we are proud to contribute to the growth of this innovative financial hub. Our presence and desirable regulatory status in the region marks another differentiator for us as we execute the next phase of our business.”  

Prior to this VARA had issued the first VASP license to Laser Digital Middle East FZE, the crypto arm of Japanese Nomura Holdings. Laser Digital now has a full crypto license that will allow it to offer virtual asset broker dealer and investment management services in the UAE.

Nomura owned crypto entities now have two full licenses in Dubai UAE, while others such as BitOasis has lost their active MVP operational license and are in the midst of being acquired by other players.

The UAE has been attracting crypto entities over the past two years, and is poised to be one of the leading regulated crypto hubs in the world. 

Updated August 22nd 2023

Abu Dhabi’s ADGM grants M2 a virtual asset trading and custodian platform an FSP license

Abu Dhabi’s ADGM grants M2 a virtual asset trading and custodian platform an FSP license

Virtual asset trading and cusotial service platform M2 has been granted a Financial Services Permission (FSP) license in the Abu Dhabi Global Market (ADGM) from the Financial Services Regulatory Authority (FSRA). M2 is approved to operate a multilateral trading facility and offer custody services to UAE residents.

M2 will be able to offer institutional and retail clients in the UAE the ability to buy, sell and custodies virtual assets. The platform has been developed over the past year with a long-term vision to establish the highest levels of trust, security, and integrity in the emerging virtual asset class.

Subject to regulatory approval, the M2 platform is scheduled to launch later this year, offering UAE virtual asset investors the opportunity to purchase market-leading virtual assets (BTC and ETH), and benefit from institutional grade trading features in addition to having a secure on and off-ramp for fiat payments.

Stefan Kimmel, M2 CEO, said, “The M2 team is delighted to have received confirmation of the ADGM FSRA license as it represents the approval of one of the most sophisticated and respected regulators in the world. The process of obtaining the license is the first step on our journey and we will remain in close dialogue with ADGM to ensure transparency around the custody of client assets.

He added, “Over the past five years the ADGM regulatory framework has established clear rules for those operating in the virtual assets sector and M2 will uphold the highest standards to reflect their vision as the UAE continues to affirm its reputation as a global leader in this space.”

Salem Al Darei, Chief Executive Officer of ADGM Authority, commented, “We are delighted to welcome M2 to ADGM’s international virtual asset community, further solidifying ADGM’s position as a leading International Financial Centre and a catalyst for business expansion. At ADGM, our mission has always been centered around unlocking new growth opportunities and fostering investments in the virtual assets sector. This has been possible through the establishment of a robust and forward-looking regulatory framework for digital assets. By integrating companies like M2 into our ecosystem, we remain committed to enhancing Abu Dhabi’s digital asset landscape and actively supporting the diversification of our thriving economy.”

Universal Digital and Canadian Aquanow receive several MVP licenses from Dubai’s virtual asset regulator

Universal Digital and Canadian Aquanow receive several MVP licenses from Dubai’s virtual asset regulator

Universal Digital AEDU and Canadian Aquanow have received MVP ( Minimum Viable Product) provisional license approvals for several virtual asset licenses from Dubai’s Virtual asset regulatory authority (VARA). Universal Digital (AEDU) has applied for advisory license, broker dealer services, virtual asset custodial license, crypto exchange license, crypto lending and borrowing license, as well as management and investment service license.

In addition Canadian headquartered, digital asset platform has also received MVP provisional approval for advisory license, broker dealer license, and management investment service license.

Aquanow is a privately funded, infrastructure and liquidity provider that enables institutional and enterprise use-cases for digital assets. The company currently has 200 institutional clients, serving customers in 30 plus countries with 70 asset pairings.

This is another representation of increased interest in the UAE as a center for virtual assets, blockchain and crypto. 

Singapore based crypto asset custodian applies for license in ADGM

Singapore based crypto asset custodian applies for license in ADGM

According to a recent news piece in Khaleej Times, Liminal, a crypto custodial wallet platform has applied for a license at Abu Dhabi Global Market (ADGM) in an effort to offer regulated service in the region.

Liminal which claims to have processed crypto transactions worth $5.6 billion on its platform, with over $550 million worth of assets under protection, believes that people will use digital assets either as part of investment or a part of underlying fundamental technology.

Mahin Gupta, Founder, Liminal stated to Khaleej Times, “Regulation will become uniform across the globe. UAE has taken a first mover advantage in the field of digital asset regulation, with much clarity. They have a clear idea about how they want to look at Metaverse, how they want to look at trading, how they want to look at custody and how they want to look at blockchain as a service and blockchain as a platform for other applications.”

Liminal in the past month has advertised for the position of Finance Officer based out of Abu Dhabi ADGM.  Prior to that Liminal partnered with Dubai based payment gateway platform Magik Labs. Through this partnership, Liminal would empower Magik Labs to create a series of transit payment wallets to receive payments from their users. These payments will then be converted to desired tokens or NFTs via connectivity to other decentralized exchange (DEX) aggregators, over the counter (OTC) desks or trading platforms. Liminal’s MPC hot wallets will enable transit wallet addresses and provide automation of transaction flows.

At the time, Manan Vora, senior vice president, strategy and operations at Liminal had noted, “Our partnership with Magik Labs is a part of our continued efforts to strengthen Liminal’s position in the Mena region as the first choice of businesses for digital wallet infrastructure services.”

According to Gupta there are about 400 digital asset businesses in the UAE, and this number will cross 1000 by the end of 2023.

Liminal is focused on Asia-Pacific and Mena regions, and is running on an accelerated growth trajectory by growing aggressively in client acquisition, especially in markets like South Korea, Hong Kong, Japan, Africa (Nigeria), Indonesia, India and Dubai.

SwissBorg crypto wealth management app launches in UAE

SwissBorg crypto wealth management app launches in UAE

SwissBorg, a cryptocurrency wealth management app, has launched in the UAE, to offer a secure way to invest and earn interest on assets through Web 3.0. The award-winning app’s formula for mass adoption is two-fold, simplicity and automation, to help anyone regardless of age or skills, become a community member. 

As per the press release, SwissBorg brings more than six years of expertise to the UAE, introducing a digital asset management app that takes the guesswork out of crypto investments. 

In the first year of its operation, the organization raised $54 million via a successful Initial Coin Offering across 146 countries from 25,000 individual contributors across the globe. The platform has 700,000 active users across multiple countries, having established strong relationships with various banks with fiat gateways for 16 currencies and credit cards.

 According to Gemini’s 2022 report ‘Global State of Crypto’, 35% of the UAE population have adopted some form of crypto tokens, compared to 17% uptake in developed nations. And of the part of the population that has not yet invested, 32% are likely to purchase crypto in 2023. A third of the crypto owners use it to make in-person purchases at brick-and-mortar retailers, compared to just 19% of owners globally.

Anthony Lesoismier, Co-Founder & Chief Strategy Officer at SwissBorg, commented on the launch, said: “We are pioneering a new era in asset management and private banking supported by blockchain technology and cryptocurrencies assets. We see cryptocurrencies as a serious investment, and our goal is to provide a variety of long-lasting crypto financial products that everyone can use to participate in the largest wealth transition in human history. The UAE serves as our perfect Middle Eastern launch pad because it is the region’s commercial, technological and cultural hub. Our extensive experience will enable UAE investors to make more confident cryptocurrency investments.”

Alexander Fazel, Chief Partnerships Officer added: “The UAE is on a trajectory to becoming the crypto capital of the world by gathering industry leaders from all corners of the globe. At SwissBorg, our goal is to be the bridge between traditional finance and decentralized finance and contribute to a world where one community will reshape centuries of broken finance. We’re at the crossroads of a new era and are forever grateful to be a part of this vibrant community. We are bringing in people from all walks of life and there is nothing more rewarding than having teenagers to senior citizens with the same purpose. SwissBorg will redesign the Bank of the Future layer by layer by educating new crypto investors in the UAE to be a part of this paradigm shift.”

SwissBorg has entered partnerships with local leaders Crypto Oasis in the UAE and is also currently raising funds in the region for a strategic round focusing on short to long-term value creation.  

SwissBorg is also one of first companies to give complete transparency on Proof of Assets and Proof of Liabilities trackable at any time in real-time using blockchain technology, creating new norms to restore trust among centralized exchanges in the wake of the recent FTX incident. 

SwissBorg seperates between custodial service and exchange, as such it does not hold custody of users’ funds and instead uses FireBlocks a trusted custodian with MPC technology.  

Binance, Kraken, LMAX, Bitfinex, and SwissBorg, are connected to the order management system (OMS), which actively searches for the best pricing for its users resulting in the platform becoming their main trading account.

 Users can start investing in three simple steps — upload their personal information and proof of identity, which is completely automated, make a deposit with their credit card or cryptos and they can then start investing.

Another crypto custodian gets licensed by Dubai’s VARA regulator

Another crypto custodian gets licensed by Dubai’s VARA regulator

Dubai’s regulator is currently pushing forth its crypto custodial licenses. Last week VARA ( Dubai Virtual Asset Regulatory Authority) provided Komainu DeFi, digital asset custodian with a provisionary license and today it has provided Hex Trust, fully licensed and insured provider of bank-grade custody and associated services for digital assets a Minimum Viable Product (MVP) license. 

The MVP license will allow Hex Trust to provide a wide range of virtual asset services to institutional clients and sophisticated investors] in Dubai within its framework for virtual asset service providers (VASPs). The range of services Hex Trust can now provide includes Virtual Assets custodial services, Broker-Dealer Services and Staking Services. 

 Hex Trust opened its Dubai office in June 2022, which is run by Filippo Buzzi, and serves as its headquarters for the MENA region.

Filippo Buzzi, Regional Director MENA of Hex Trust, commented, “Becoming one of the first virtual asset companies and custodian to receive the license is a big step for Hex Trust as we establish ourselves in the MENA region. We recognize the enormous potential this region has to build one of the leading virtual asset hubs in the world. Hex Trust looks forward to expanding our client base in Dubai following the license approval and making a positive contribution to the VA ecosystem in the region. 

Alessio Quaglini, cofounder and CEO of Hex Trust, commented, “From day one, Hex Trust was built to follow the strictest compliance policies and adhere to regulatory standards across the main jurisdictions. Being amongst the first companies to be granted the MVP is exciting, given the enormous potential of the sector in Dubai.”

Japanese crypto custody provider receives provisional license from Dubai VARA

Japanese crypto custody provider receives provisional license from Dubai VARA

Komainu,  a regulated digital asset custody provider created by Japanese investment bank Nomura, digital asset manager CoinShares and digital asset security company Ledger. has been granted a provisional regulatory approval from Dubai’s Virtual Assets Regulatory Authority [VARA] to commence operational readiness. The provisional license will enable Komainu to be amongst the first fully regulated digital asset custody services to institutional clients in the region.

As per the press release, Komainu acts as key gatekeeper to institutions gaining exposure to the digital asset industry with the provision of secure and regulated digital asset custody services for blockchain and beyond. Over the years, Komainu has established itself as one of the leading digital asset custody providers for institutional clients, providing the same safeguards and protections investors are accustomed to in traditional finance. The Custodian’s industry-leading services have been designed by security, financial services and cryptocurrency experts and have been approved by external auditors.

Komainu has elected to base its regional HQ in Dubai and participate in this fast-evolving global virtual asset valley – in order to establish its leadership in the provision of institutional-grade digital asset services across the wider region.

H.E. Helal Saeed Almarri, Chairman of VARA, said, “Komainu’s entry into VARA’s regime is symbolic of the confidence and credibility that the Virtual Assets industry is gaining when backed by such strong endorsement from traditional finance leaders like Nomura. Such acceptance and active participation of tier 1 global institutional finance firms is not only an affirmation of Virtual Assets being integral to the future of finance, but also indicative of the potential that this industry can offer for economic empowerment. Dubai is pleased to welcome credible players like Komainu into VARA’s virtual assets ecosystem.”

The regulatory license once received, will establish Komainu as one of Dubai’s first regulated crypto custody providers, bringing a much-needed service to the proliferating regional ecosystem. The endorsement from the Dubai Government strengthens the Custodian’s fast-paced growth projections, in line with their core underpinning of doing so in a secure, robust and regulated manner. With the continued support of the Dubai regulators, Komainu is set to be a first mover in the MENA region.

Sebastian Widmann, Head of Strategy at Komainu, said, “Dubai and VARA are establishing a new hub for digital asset businesses and bringing like-minded companies into the country to help establish its growing crypto ecosystem and we look forward to contributing to these exciting developments. Komainu actively works with regulators, partners and our clients to make sure that our platform is held to the highest of standards and this latest endorsement by the Dubai Government is a further testament to that fact. By expanding into the MENA region, we are bringing a much-needed service to institutions operating within a regulated crypto marketplace. We are excited to bring Komainu Yield as well as the other new services set to launch in the near future to this marketplace and thereby serve a new demographic of institutions.”