Nomura, CoinShares, and Ledger’s joint venture, Komainu, secures Dubai crypto license.

Nomura, CoinShares, and Ledger's joint venture, Komainu, secures Dubai crypto license.

The Rise of Blockchain in Dubai: Komainu Receives Full Operating License

DIFC’s newly-launched Innovation One building has physical offices and co-working spaces for registered AI and Web3 enterprises. Source: dubaiaicampus.com

Dubai has recently established itself as a significant player in the blockchain industry, embracing crypto innovations and attracting global talent. The United Arab Emirates has shown strong support for blockchain technology, offering federal grants and pro-crypto regulations that aim to foster innovation and entrepreneurial growth. In line with this commitment, Dubai’s Virtual Asset Regulatory Authority (VARA) has granted Komainu, a joint venture between Nomura, CoinShares, and Ledger, a full operating license. This milestone highlights the increasing adoption of blockchain technology in the region.

To obtain a VARA license, crypto exchanges need to go through a thorough three-step process. This includes qualifying for provisional approval, obtaining a minimal viable product (MVP) license, and finally, securing a full market product license. Komainu completed this rigorous process in approximately ten months after obtaining its MVP license in November 2022. This achievement places Komainu in the same league as other prominent crypto exchanges, such as Binance, Bybit, Laser Digital Middle East, OKX, Crypto.com, FTX (although it has had its license revoked by VARA), and Huobi.

Obtaining a desirable regulatory status plays a crucial role in the growth and success of businesses in the blockchain industry. Sebastian Widmann, Komainu’s head of strategy, emphasized the importance of this milestone in facilitating their business expansion. Komainu, which is also regulated by the Jersey Financial Services Commission, will be able to leverage its VARA license to offer a full suite of custody services, including institutional staking and collateral management through its collateral management service, Komainu Connect. This regulatory approval reinforces the credibility and reliability of Komainu in the market.

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Dubai has demonstrated its commitment to nurturing blockchain technology by subsidizing commercial licenses for artificial intelligence (AI) and Web3 businesses. The Dubai AI and Web 3.0 Campus, operated by the Dubai International Financial Centre (DIFC), made the decision to support companies willing to establish themselves in the city. This initiative aims to attract global talent and diversified investors, enhancing Dubai’s position as a hub for cutting-edge technologies.

The blockchain industry in Dubai is rapidly evolving, supported by favorable regulations and a proactive approach to innovation. Entrepreneurs and businesses in the sector have been provided with the necessary tools and incentives to thrive in this ecosystem. The rise of blockchain technology not only strengthens the financial landscape but also opens up new avenues for economic growth and societal transformation.

In conclusion, Komainu’s acquisition of a full operating license from VARA is a significant milestone for both the company and the blockchain industry in Dubai. This achievement showcases Dubai’s drive towards becoming a global leader in technology and innovation. With the backing of advantageous regulations and the commitment to support emerging technologies like blockchain, Dubai continues to attract industry players and solidify its position as a blockchain and crypto-friendly jurisdiction.

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References:

• Cointelegraph – “Binance eyes United Arab Emirates as ‘focal point’ for future operations”
• Cointelegraph article link
• Image source

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