Sharia-compliant CoinMENA gets Dubai’s broker-dealer license
CoinMENA, a cryptocurrency exchange headquartered in Bahrain, has received a Virtual Asset Service Provider (VASP) license for VA Broker-Dealer services from Dubai’s local regulator to operate and offer its services in and from the Emirate.
The MVP license means that CoinMENA can offer a range of virtual asset related services to retail and institutional investors in Dubai within its internationally benchmarked legislative framework for virtual asset service providers (VASPs).
Dubai’s Virtual Asset Regulatory Authority (VARA) issued the operating license to CoinMENA after reportedly meeting all of the operational, technical, and security requirements outlined by the local regulators.
The approval allowed the exchange to conduct a spectrum of virtual assets business under the regulatory authority of VARA, which serves as the single custodial entity mandated to license and govern crypto activities in Dubai. This includes offering exchange products and services to pre-qualified investors and professional financial service providers under strict oversight and mandatory FATF compliance controls.
Commenting in a joint statement, CoinMENA’s co-founders Dina Sam’an and Talal Tabbaa said: “Thanks to the regulatory clarity from VARA, Dubai is becoming a global hub for crypto and digital asset financial services. We are delighted to have received a license from VARA, which further strengthens our market position and gives confidence to our users and investors.”
“Dubai is at the forefront of crypto growth and innovation, launching various initiatives to push the adoption of the digital asset in the region. Working with VARA will enable us to better serve our institutional and retail users in the Emirate as well as reduce fiat to crypto transaction costs,” added Tabbaa.
With the transition to an MVP approval, CoinMENA can open client money accounts with a domestic bank and provide various services to qualified customers. The exchange has been approved to deploy conversion between virtual assets and fiat currencies, as well as crypto payments and remittance services. In addition, CoinMENA can also act as a clearing house, operate tokens marketplace, and provide custodial services across the region.
CoinMENA already bags three crypto licenses, which were acquired within its first year of operations. The first approval was from the Central Bank of Bahrain (CBB) and the second in the European Union. The nod from VARA would be the fourth license and will enable the Sharia-compliant platform to offer its products and services to institutional investors in the Middle East and North Africa, or MENA, countries — including Bahrain, the United Arab Emirates, Saudi Arabia, Kuwait and Oman.