Komainu has received the green light from Dubai’s Virtual Asset Regulatory Authority to offer its custody services to clients in the region, according to a statement provided to Blockworks on Tuesday.
This approval places the crypto custodian among the pioneers to secure a full Virtual Asset Service Provider (VASP) license in a region that has attracted the interest of various companies in the cryptocurrency sector. This surge of interest in Dubai began after VARA was established in March 2022, signifying a significant step toward legitimizing the crypto industry in the emirate.
Komainu’s strategy lead, Sebastian Widmann, expressed his enthusiasm for VARA’s regulatory framework, which fosters innovation while prioritizing the safe operation of digital assets. This framework also sets the stage for exploring the potential of digital assets, including tokenization and DeFi services.
VARA employs a four-stage licensing process, consisting of a provisional permit, preparatory and operating minimal viable product licenses, and finally, the coveted full market product (FMP) license.
Obtaining this ultimate FMP license empowers Komainu to extend institutional staking and collateral management services throughout the region via its Komainu Connect platform. The custodian can also offer custody services and custodial staking, adding depth to its offerings.
Komainu, founded in 2018 through a collaboration between Japan-based financial powerhouse Nomura, blockchain company Ledger, and crypto investment firm CoinShares, primarily serves institutional clients. This clientele includes asset managers, banks, liquidity providers, and exchanges.
The company had already secured preliminary approval to operate in Dubai back in July 2022, and in November of the same year, Komainu received its MVP license from the Dubai regulator.
Sebastian Widmann expressed optimism about the company’s prospects in the Gulf Cooperation Council (GCC) countries, noting substantial growth potential in the region. To accommodate the increasing demand from clients, Komainu plans to double its current headcount in Dubai by the end of the year. Presently, the company has five employees in Dubai under Widmann’s leadership.
Komainu’s licensing achievement comes on the heels of Laser Digital, Nomura’s crypto unit, securing a full license from VARA just a few weeks ago. Additionally, crypto exchange giant Binance obtained an operational MVP license last month, bringing it one step closer to offering a broader range of authorized services in the region.
