Dubai's Crypto Surge: Komainu Bags License after Binance's Entry

<p>After
Binance secured an operational license for cryptocurrency services in Dubai at
the previous month's end, another digital asset sector company announced its
own license acquisition. Komainu, a custody service provider for Bitcoin (BTC)
and altcoins, can now provide access to its complete product range in the
region.</p><p>Komainu Secures
Operational License in Dubai's Digital Asset Space</p><p>In 2022, Komainu <a href="https://www.financemagnates.com/cryptocurrency/news/komainu-receives-provisional-regulatory-approval-from-dubais-vara/" target="_blank" rel="follow">secured</a> the first Minimum Viable Product (MVP) license granted by
the Virtual Asset Regulatory Authority (VARA). The additional license will
enable the company to expand its service offerings and cater to a broader
clientele.</p><p>Komainu's
recent licensing by VARA enables the company to offer its comprehensive suite
of custody services to clients in Dubai. These services include institutional
<a href="https://www.financemagnates.com/terms/s/staking/">staking</a> and collateral management through the Komainu Connect platform. With
its base in Dubai, Komainu MEA FZE signifies the firm's dedication to
establishing a significant presence and achieving its regional objectives.</p><p>Sebastian
Widmann, the Head of Strategy at Komainu, expressed his optimism about the
company's growth in Dubai. He noted the city's thriving digital asset ecosystem
and its pool of talented professionals. </p><p>"Dubai
has a vibrant digital asset ecosystem and impressive talent pool, and we are
proud to contribute to the growth of this innovative financial <a href="https://www.financemagnates.com/terms/h/hub/">hub</a>. Our
presence and desirable regulatory status in the region marks another
differentiator for us as we execute the next phase of our business,"
Widmann added.</p><p>Founded in
2018, Komainu offers institutions a secure custody service for digital asset
investments. Since its full launch in June 2020, Komainu has been the custodian
for various entities, including exchanges, financial institutions, and
government agencies.</p><p>Komainu is one of the first cryptocurrency companies to obtain an operating license in Dubai. Less than a month ago, a similar license was obtained by the local branch of the Binance exchange, <a href="https://www.financemagnates.com/cryptocurrency/binance-secures-operational-license-in-dubai-despite-global-woes/" target="_blank" rel="follow">Binance FZE</a>. </p><p>Why Is Dubai Attracting
More Crypto Companies?</p><p>According to Komainu representatives, the VARA regulations are crafted to facilitate allowable activities and services for clients and investors in Dubai. VARA has established a pioneering framework that, in the face of regulatory uncertainties in other parts of the world, attracts an increasing number of companies.</p><p>Not only
have Binance and Komainu chosen to initiate their operations in the United Arab
Emirates (UAE), but other prominent crypto firms like <a href="https://www.financemagnates.com/cryptocurrency/bitget-joins-bybit-and-okx-in-newest-dubai-crypto-push-opens-local-office/" target="_blank" rel="follow">Bitget, ByBit, and OKX</a>
have pursued local licensing. This indicates a growing trend among digital
asset exchanges toward establishing a presence in the UAE. Moreover, OKX has partnered with Komainu recently <a href="https://www.financemagnates.com/cryptocurrency/okx-partners-with-komainu-to-boost-institutional-cryptocurrency-trading-security/" target="_blank" rel="follow">to boost institutional crypto trading security</a>.</p><p>Not only
cryptocurrency companies but also other financial players are entering the
market. Finance Magnates reported in early August that <a href="https://www.financemagnates.com/cryptocurrency/laser-digital-joins-aftx-and-cmc-markets-in-dubai-crypto-push-gains-vasp-license/" target="_blank" rel="follow">Laser Digital,
ATFX and CMC Markets</a> had decided to take advantage of Dubai's offer.</p><p>Furthermore,
the local market appears to have significant potential, given the interest of
retail investors in trading. The rising number of active traders in the local FX/CFDs
market supports this observation. According to Investment Trends, the
UAE's FX and CFDs population of traders <a href="https://www.financemagnates.com/forex/uaes-fx-and-cfds-trader-population-reaches-record-49000-in-2023/" target="_blank" rel="follow">reached a record 49,000 in 2023</a>. </p>

This article was written by Damian Chmiel at www.financemagnates.com.