In a significant move for the digital asset sector, Fasset, a leading digital asset investment platform, has been granted a Virtual Asset Service Provider (VASP) license by the Dubai Virtual Asset Regulatory Authority (VARA).
The pivotal development, announced on November 29, marks a new chapter for Fasset, enabling it to offer broker-dealer services in Dubai legally.
Expansion of Services in the Middle East
With the newly acquired license, Fasset is set to expand its operational footprint in the Middle East, particularly in Dubai. The VASP license permits Fasset to provide services to a wide range of investors, including local institutional investors, qualified investors, and retail investors. The broad scope of authorization underlines the emirate’s commitment to becoming a hub for digital asset services and investments.
Originally based in London, Fasset has been progressively extending its services across various regions, including Indonesia, Malaysia, Bangladesh, Pakistan, Turkey, and now, Dubai. The company’s website reflects its global outreach, offering a diverse range of services tailored to the specific needs of these markets.
Dubai’s Growing Stature in the Digital Asset Domain
The granting of the VASP license to Fasset by VARA is a testament to Dubai’s growing prominence in the digital asset industry. VARA, as the sole regulatory authority overseeing digital assets in Dubai, plays a crucial role in shaping the region’s digital asset landscape. The authority has been actively expanding and restructuring its operations in preparation for full-scale market operations slated for 2024.
The strategic move by VARA coincides with other significant licenses issued to prominent players in the crypto space. Notably, Hex Trust, another institutional crypto custodian, was also granted a VASP license earlier in November. Furthermore, other major crypto companies like Binance, Bybit, Laser Digital Middle East, OKX, Crypto.com, and Huobi have received similar operational approvals in the form of minimal viable products or VASP licenses.
The interest of these leading crypto firms in Dubai is a strong indicator of the emirate’s potential as a key player in the global digital asset arena. Binance, one of the largest cryptocurrency exchanges globally, has expressed interest in making the United Arab Emirates its focal point for future operations, underscoring the strategic importance of the region.
Regulatory Developments
The UAE’s proactive approach towards regulating the digital asset sector is evident in its recent announcement to tighten rules on unlicensed VASPs. The initiative, announced on November 8, aims to impose stringent fines on non-compliant entities, reinforcing the importance of adhering to regulatory standards.
The new guidelines emphasize the responsibility of licensed financial institutions and VASPs to report any suspicious transactions through established whistleblowing mechanisms. The measure is part of a broader effort to ensure transparency and security in the digital asset market, protecting investors and maintaining the integrity of financial systems.
Conclusion
The granting of the VASP license to Fasset by Dubai’s VARA marks a significant milestone in the region’s digital asset industry. It not only enhances Fasset’s capability to serve a diverse range of investors in Dubai but also signifies the emirate’s commitment to establishing itself as a leading hub for digital asset services. The regulatory advancements and compliance measures adopted by the UAE further solidify its position as a forward-thinking player in the global digital asset landscape.
