Dubai's Virtual Asset Regulatory Authority (VARA) has greenlit the Bahrain-based cryptocurrency exchange CoinMENA to operate in the United Arab Emirates (UAE) through the approval of a Virtual Asset Service Provider (VASP) license. This authorization, obtained by CoinMENA FZE, the Dubai-based wing of CoinMENA B.S.C., enables the platform to deliver virtual asset broker-dealer services, as detailed in an announcement shared with on December 12. Notably, the platform secured a provisional license from Dubai regulators a year prior.
With this license, CoinMENA gains the ability to facilitate both retail and institutional clients in the UAE to deposit and withdraw funds in UAE dirhams, enabling faster transactions without the need for foreign exchange considerations. The co-founders of CoinMENA, Dina Sam'an and Talal Tabbaa, emphasized VARA's transparent regulatory framework, positioning Dubai as a burgeoning global hub for cryptocurrency and digital asset financial services. Sam'an highlighted the significance of their strong rapport with local regulators, citing it as a fundamental priority for the company.
Acknowledging Dubai's pivotal role in cryptocurrency innovation and expansion, the co-founder also expressed the strategic importance of partnering with VARA, stating it would enhance their ability to serve both institutional and retail users in the emirate, while simultaneously reducing transaction costs involved in converting fiat to cryptocurrencies. CoinMENA has been a regulated entity under the Central Bank of Bahrain (CBB) since 2021, specifically holding a Category 3 Crypto-Asset Service Provider License. This licensure allows CoinMENA to serve users within the member state of Bahrain in the GCC.
A spokesperson from CoinMENA clarified that the newly acquired license will exclusively impact users in the UAE, ensuring that their operations in Bahrain will continue catering to the rest of their customer base. CoinMENA is now part of an expanding group of active VASP licensees operating within the cryptocurrency broker-dealer services realm, joining the ranks of firms like cryptocurrency investment platform Fasset and digital asset company Laser Digital, among others.
“The competitive landscape is only going to get more intense,” the spokesperson said. “We have no illusions that Dubai aims to become a global cryptocurrency hub and, as such, we expect many global players to join.”
