Liminal secures FSP license from FSRA in ADGM   Read more

Liminal Granted An Initial Approval from Virtual Asset Regulatory Authority (VARA) in Dubai

| May 27, 2024

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As part of our strategic expansion into the Middle East market, we are leaving no stone unturned and are proactively pushing our regulatory stance to become a digital asset service provider upon fully approved and granted certifications. This move is a testament to our commitment to providing industry-standard custody solutions and our ambition to become a multi-jurisdiction regulated custodian. 

Taking this stance ahead, we are excited to share that Liminal Custody’s Dubai entity, First Answer Custody FZE, has received initial approval for Virtual Assets Service Provider (VASP) Licence for specified virtual asset service activities by Dubai’s Virtual Assets Regulatory Authority (VARA).

With the initial approval for the VASP license, we are now ready to enter the last phase of our regulatory clearance with thorough business and technology audits. Once we are fully cleared and granted the VASP license, we will be able to serve all institutions and organizations operating in the Emirate of Dubai (excl. DIFC) and offer them fully certified managed custody infrastructure, simplifying their journey of securing private keys and adhering to the latest compliances. Our aim is to bridge bank-grade custody with industry-leading integration, ensuring smooth digital asset and wallet operations for our clients. 

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This news came at the right time, as we have already received our FSP license from ADGM’s regulatory body, FSRA. This marks how aggressively we are looking to make a mark in the MENA region and become the go-to regulated custodian. 

Progressive Virtual Asset Regulation By Dubai

The Dubai Virtual Assets Authority (VARA), established in February 2022 under the UAE’s Virtual Assets (VA) Law, operates as the regulatory body overseeing Virtual Assets Service Providers (VASPs) and virtual asset activities in Dubai (excluding the Dubai International Financial Centre or DIFC).

VARA’s licensing framework is extensive, encompassing various virtual asset activities such as advisory services, broker-dealer services, custody services, exchange services, lending and borrowing services, management and investment services, and transfer and settlement services. This comprehensive approach ensures thorough regulation and supervision of the virtual asset ecosystem within the emirate.

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Liminal’s Stride To Empower Digital Asset Ecosystem In UAE

According to the PwC report on the UAE digital asset market, the UAE witnessed a remarkable 500% surge in its share of the global crypto market from July 2020 to June 2021, exceeding US$25 billion in transaction value. This growth underscores the UAE’s emergence as a significant player in the digital asset realm.

In line with efforts to establish standard practices for safeguarding institutional assets, we introduce our multi-sig-protected custodial wallets fortified with CCSS protocols for enhanced security. Our firewall engine automates compliance and risk management while seamless market connectivity ensures instant liquidity.

Amir Tabch, CEO of Liminal Custody Solutions Middle East, stated: “We are thrilled to receive this initial approval from VARA. This achievement underscores our commitment to meeting client needs while adhering to the highest regulatory standards. We look forward to working with VARA to finalize our operations and commence regulated custody services soon.”

Our next step involves undergoing a rigorous audit process to meet the regulatory requirements for accrediting the VASP license. Once completed, Liminal will attain full regulatory approval, becoming a fully regulated and accredited custodian in the UAE.

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