Canada-headquartered Aquanow, a crypto infrastructure provider, has bolstered its compliance efforts by securing a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).

A Much-Sought Crypto License

Announced yesterday (Monday), the license will allow the company to offer broker-dealer, lending and borrowing, and management and investment services. However, the license remains non-operational until the company “fully satisfies all remaining conditions and select localization requirements defined by VARA,” a standard procedure for VARA-licensed entities.

“Dubai’s D33 vision of emerging as a top global financial center and a major hub of innovation, testing, and commercialization of new technologies was a key factor in making the Emirate the centerpiece in our international growth efforts,” Aquanow’s Co-Founder and CEO, Phil Sham, said.

“We look forward to enabling a range of crypto use cases and contributing to the region’s efforts that are leading the virtual assets industry in balancing consumer protections with world-changing technology.”

Established in 2018, Aquanow offers digital assets infrastructure to institutions, enabling them to offer financial services. Its customer base includes banks, neobanks, brokerages, and payment companies. According to the company, “each month, billions of dollar value pass through” its platform.

Dubai Is Making a Mark in Global Crypto Map

Meanwhile, Dubai has become a preferred destination for crypto companies due to the city’s clear regulations for the industry. The authorities in Dubai established VARA, an independent regulator only to oversee the locally licensed crypto companies, in March 2022, along with specific regulations for the industry.

Over the years, several crypto companies, retail and institutional, have established bases in the vibrant city of the Middle East and obtained local licenses. Among retail crypto exchanges were Binance, OKX, and Crypto.com, which have obtained licenses from VARA. Other companies like B2B Prime, GCEX, and HEX Trust also received a similar license to strengthen their presence in the Middle East.