Key Takeaways
- Fasset is now legally authorized to perform broker-dealer services in Dubai
- VARA holds exclusive authority to enforce regulations in the crypto sector
In a significant milestone for the digital asset investment space, Fasset, a platform initially rooted in London, has been granted a coveted operational license by the Dubai Virtual Asset Regulatory Authority (VARA).
The license, officially confirmed on November 29, positions Fasset as a Virtual Asset Service Provider (VASP), enabling it to cater to a diverse clientele including institutional investors, qualified investors, and retail investors in Dubai.
This achievement marks the culmination of a rigorous three-stage process, encompassing a provisional permit, a preparatory license, and finally, the operational license. Fasset FZE, the company’s Dubai-based entity, has successfully navigated through these stages, placing it in a prime position to provide broker-dealer services and offer tokenized bonds and stocks in collaboration with VARA.
Under the terms of the VASP license, Fasset is now legally authorized to perform broker-dealer services in Dubai, extending its reach to local institutional investors, qualified investors, and retail investors alike. The company has expanded its footprint beyond its London roots and now operates not only in Dubai but also in Indonesia, offering services in various countries including Malaysia, Bangladesh, Pakistan, and Turkey.
VARA, serving as the regulatory cornerstone for digital assets in Dubai, holds the exclusive authority to enforce regulations in this domain. In a proactive move to strengthen its capabilities, VARA recently underwent a leadership shuffle in November, gearing up for an expansion of operations and a full-scale market presence by 2024.
This development aligns with Dubai’s broader embrace of the digital asset landscape. Earlier this month, Hex Trust, an institutional cryptocurrency asset custodian founded in Hong Kong, received approval to provide virtual asset custodial services to institutional clients and investors in Dubai.
The regulatory landscape in Dubai has also seen the issuance of minimal viable product or VASP licenses to prominent crypto players such as Binance, Bybit, Laser Digital Middle East, OKX, Crypto.com, and Huobi.
In a collaborative effort, the Central Bank of the United Arab Emirates (CBUAE) and other regulatory bodies in the country have released joint guidance for virtual asset service providers (VASPs) operating within the jurisdiction. These guidelines, designed to ensure a secure and compliant environment, come with penalties for VASPs found operating without the requisite licenses.
Fasset’s successful acquisition of the operational license underscores Dubai’s commitment to fostering a vibrant and regulated digital asset ecosystem, positioning the city as a key player in the rapidly evolving global financial landscape.
