<p>In the latest demonstration of the emirate’s crypto-friendly credentials, Dubai regulator, the Virtual Assets Regulatory Authority (VARA), has<a href="https://x.com/WadzPay/status/1719625600577818676?s&#61;20" rel="noopener noreferrer nofollow"> granted</a> an “Initial Approval” license to WadzPay.</p><p>WadzPay was founded in 2018 in Singapore as a business-to-business (B2B) technology firm that concentrates its efforts on enabling digital asset-based transaction processing and settlement. This licensing approval is a significant step forward for the startup, as it inches closer to obtaining a full-fledged Virtual Asset Service Provider (VASP) license.</p><h2 id="header-0">Gearing up for service roll-out</h2><p>With this approval in hand, WadzPay is gearing up to offer a range of virtual asset services, specifically under the forthcoming VASP License for Transfer and Settlement, as well as Broker-Dealer trading activities.</p><p>That said, the current VARA license places certain restrictions on WadzPay’s offerings. While WadzPay is known for providing a wide array of services to businesses (B2B) and individual users through its B2B2C platform, the “Initial Approval” license limits its scope to only a subset of its virtual asset products and services.</p><h2 id="header-1">Flurry of approvals</h2><p>Dubai has taken center stage in the realm of crypto-friendly jurisdictions, granting a flurry of operational licenses to numerous crypto firms and exchanges in recent months. The regulatory framework in Dubai is underpinned by robust guidelines for VASPs. To operate fully within this framework, crypto firms must navigate a meticulous three-tier licensing process, starting with provisional approval, followed by a minimal viable product (MVP) license, culminating in a total market product license.</p><p>One of the recent beneficiaries of VARA’s approvals is <a href="https://medium.com/&#64;coinness.gl/backpack-crypto-wallet-secures-vasp-license-for-crypto-exchange-in-dubai-2ba0bf34032d" rel="noopener noreferrer nofollow">Backpack</a>, a virtual currency wallet provider. Last month, Backpack received its VASP license, allowing the introduction of the Backpack Exchange to the market. However, similar to WadzPay’s situation, Backpack’s license comes with certain limitations.</p><p>It permits the offering of crypto exchange services within Dubai but restricts the rollout of other virtual asset services. The Backpack Exchange sets itself apart with advanced features, including zero-knowledge (ZK) proof-of-reserves, multi-party computation (MPC) for secure custody and lightning-fast order execution capabilities.</p><h2 id="header-2">Nomura portfolio company approvals</h2><p>Komainu, a collaborative venture involving financial heavyweights like Nomura, CoinShares and Ledger, is another notable success story. After a diligent licensing journey, Komainu <a href="https://medium.com/&#64;coinness.gl/nomura-backed-digital-exchange-acquires-trading-license-in-dubai-f1ee43c0c46a" rel="noopener noreferrer nofollow">secured</a> its full operating license from VARA, approximately 10 months after obtaining its MVP license in November 2022.</p><p>Laser Digital, a crypto division under the vast umbrella of financial giant Nomura, also <a href="https://medium.com/&#64;coinness.gl/nomuras-crypto-subsidiary-secures-dubai-vara-license-5d518ba7bf57" rel="noopener noreferrer nofollow">earned</a> its operational license from VARA in August. Through its dedicated subsidiary, Laser Digital Middle East FZE, based conveniently in Dubai, Nomura has showcased its VASP license. The permit enables the firm to offer a suite of services, including brokerage, virtual asset management and investment offerings within the emirate.</p><p>Notably, Laser Digital’s licensure followed closely on the heels of Binance, the global crypto exchange. Binance <a href="https://medium.com/&#64;coinness.gl/binance-expands-crypto-offering-in-dubai-with-new-license-27c7e4b7fe1c" rel="noopener noreferrer nofollow">secured</a> its operational minimum viable product (MVP) license from VARA, paving the way for providing crypto exchange and virtual asset broker-dealer services within the region.</p><p>This flurry of licensing activities and approvals in Dubai is suggestive of the emirate’s commitment to fostering a progressive and regulated crypto environment.</p>

Dubai’s VARA grants WadzPay ‘initial approval’ of trading license

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