Komainu Receives Provisional License From Dubai’s VARA

While still in its due diligence stage, Komainu, a Nomura-backed crypto custodian, has received a provisional license for virtual asset operators in Dubai.

The government of Dubai’s Virtual Assets Regulatory Authority (VARA) presented the crypto firm with an interim regulatory approval to initiate readiness for its operations in the UAE. Komainu’s application is still being processed by VARA.

When the approval finally pulls through, Komainu will be one of the fully regulated digital asset custody services to institutional clients in the United Arab Emirates. Komainu also regarded as the “Custodian” is one of the leading regulated digital assets custody providers that is built by institutions for institutional clients. 

The Custodian furnishes its clients with the same precautions and protections investors are entitled to in traditional finance. By providing regulated digital assets services for the digital ledger to its institutional clients, Komainu stands as a key porter to institutions intending to gain exposure to the crypto industry.

Komainu boasts of industry-leading services designed by experts in the security, financial and crypto sectors which have also passed through the scrutiny of external auditors.

The firm which is a joint venture between Nomura, a Japanese investment bank, CoinShare; a digital assets manager, and Ledger, a digital assets security watchdog is seeking expansion into the Middle East after successfully conquering the Asia Pacific region.

Dubai Region in a Crypto Sugar Rush

Dubai is developing into a bubbly hub for crypto and is encouraging the entry of prominent players and investors in the digital assets industry with its functional regulations.

Excitingly, Komainu has joined other renowned crypto firms with licenses in the UAE region. OKX, one of the world’s largest cryptocurrency exchanges recently received full regulatory approval to conduct its activities in Dubai.

This is the second license that the exchange was receiving from that region. It had initially obtained a license from the Central Bank of Bahrain (CBB). The European brainchild of the FTX Exchange which was launched earlier this year, FTX Europe, also received a license from the Dubai region. 

Noteworthy is the fact that Dubai’s tax-free economy is an attraction for foreign investors and these crypto firms. Although it is rumored that the Emirates region is gearing towards introducing a tax rate for businesses with an income tax of more than AED 375,000 which is approximately $102,000 at the time of this writing.