CoinW, a leading global cryptocurrency exchange, announced that it had obtained initial approval from the Dubai Virtual Asset Regulatory Authority (VARA). This approval marks a significant step for CoinW's global expansion and will lead to substantial investment in the UAE market. It also demonstrates CoinW's commitment to regulatory compliance, providing a secure and reliable trading platform for investors while accelerating its growth in the Middle East.
In early February, VARA released regulations for virtual assets and related activities in 2023. These regulations set up a comprehensive framework for virtual assets based on principles of economic sustainability and cross-border financial security. Cryptocurrency companies are required to obtain authorization and relevant licenses to operate in Dubai, covering everything from cybersecurity standards to compliance and risk management standards, as well as specific activities such as broadcasting, consulting, custody, and exchange services. The framework also includes advertising and commercial activity requirements for cryptocurrency companies, which still require final approval before implementation.
The initial approval from VARA means that CoinW will be able to operate its regional business in Dubai within the newly announced regulatory framework and serve as its foundation for operation in the region.
Sonia, the Global Cooperation Director of CoinW, commented that the UAE is growing into an important global cryptocurrency hub, with Dubai being the first global economy to establish a dedicated regulatory authority for the virtual asset industry. It is foreseeable that the cryptocurrency business in the Middle East will thrive in the coming years. CoinW is optimistic about the potential of this city and the future opportunities it offers. We look forward to working with VARA and other local authorities to further invest in Dubai and promote the development of the virtual asset industry in the Middle East.
As one of the earliest global cryptocurrency exchanges to offer cryptocurrency trading services, CoinW has been dedicated to compliant operation since its inauguration in 2017. To date, CoinW has obtained various crypto-related compliant licenses in multiple countries and regions, including the US MSB financial license, Canadian MSB license, Lithuanian financial regulatory license, SVGFSA license, and others. This preliminary approval from VARA marks another important milestone for CoinW in terms of regulatory compliance and accelerates its strategic positioning for global expansion.