Tuesday, June 25, 2024
- Advertisment -
HomeDigital AssetsDubai's VARA allows staking for regulated digital asset custodians
- Advertisment -

Dubai’s VARA allows staking for regulated digital asset custodians

VARA has recently issued an updated version of its Custody Services Rulebook, which now permits Staking from Custody Services in adherence to the newly revised guidelines within the rulebook.

Virtual Asset Service Providers (VASPs) that hold licenses for conducting Custody Services are now granted the opportunity to offer staking services to their clients under the same legal entity, subject to obtaining specific additional approval from VARA.

VASPs no longer need to acquire a separate license for staking

This new allowance eliminates the need for these VASPs to acquire a separate license for Virtual Asset Management and Investment Services. It’s important to note that the provision of this additional service will require the payment of supplementary licensing and supervision fees.

Operating as the governing authority, VARA is responsible for the regulation, supervision, and oversight of Virtual Asset services in the Emirate of Dubai, excluding the jurisdiction of the Dubai International Financial Centre.

According to the Dubai regulator, VASPs Licensed by VARA to carry out Custody Services that are also authorised to provide Staking from Custody Services, may provide Staking from Custody Services through the same legal Entity.

“For avoidance of doubt, such authorisation for, and provision of Staking from Custody Services is considered to be sub-set of the Custody Services Activity, and is hence not subject to the requirement for a separate legal Entity stipulated under Rule III.B.5 of this Custody Services Rulebook.”

Komainu, the latest digital asset custodian to be authorized by Dubai’s VARA

In the meantime, Dubai’s VARA continues to provide regulatory authorizations to virtual asset services providers that apply to licenses in the jurisdiction.

Earlier this week, Komainu was granted the operating license by the Virtual Asset Regulatory Authority (VARA) in Dubai, the digital asset custody service provider announced. The joint venture between Nomura, digital asset manager CoinShares, and digital asset security company Ledger first obtained a temporary MVP license from VARA in November 2022.

With this newly secured authorization, Komainu is allowed to offer its full suite of custody services, including institutional staking and collateral management via its Komainu Connect platform to clients in the Emirate.

- Advertisment -

Most Resent

- Advertisment -

Most Popular

- Advertisment -
- Advertisment -