The Mantra Finance Fze (Mantra) obtained a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). This license allows the mantra to operate as a virtual asset exchange and offer broker-dealer, management, and investment services within Emirate.
A new chapter in Regulated Defi Services
With this license, the mantra is likely to expand its global footprint by introducing a suite of innovative, regulation that complies with financial products that are in accordance with the emerging needs of investors worldwide. The company aims to measure its operations in the Middle East, focusing on the tokenization of real-world assets (RWW).
“This license is an important step for the mantra and a key step on our journey to the global expansion,” said John Patrick Mullin, CEO of Mantra.
John also noted that Dubai and Vara became world-leaders in crypto regulation by promoting the most timely, comprehensive, and built-from-ground-up framework for virtual properties and Web3.
The progressive regulation of Dubai
Dubai quickly emerged as a global hub for virtual ownership, thanks to a large part in the comprehensive vara regulation framework. Established in March 2022 under the law of Dubai No. Its mandate includes the administration of provision, use, and exchange of virtual ownership throughout Dubai’s Mainland and Free Zones, excluding the Dubai International Financial Center (DIFC).
Vara regulation framework covers a broad spectrum of virtual property activities, including counseling services, broker-dealer services, precautionary services, exchange services, lending services and borrowing, management and investment services, and transfer and settlement services. This comprehensive procedure ensures that creatures such as the mantra operate within a well-defined legal structure, care for change while protecting the investor’s interests.
The strict licensing path
Getting a Vasp license from the vara involves a thorough process of two stages:
Initial Approval (Approval to include): Applicants have submitted an initial disclosure question (IDQ) to the Economic and Tourism Department (DET) or the with -the -free authority of the free zone. This stage requires detailed documentation, including a business plan and information about the benefits of the company owned by the company and senior management. At a satisfactory examination, an approved to include (ATI) was granted, allowing the firm to continue with legal integration and operation of operation.
Vasp License Application: Following ATI, the firm must prepare and submit a comprehensive documentation as guided by Vara. This includes detailed policies and procedures that cover corporate management, risk and compliance, technology infrastructure, and more. The application undergoes a thorough evaluation process, which may involve meetings and interviews. In successful completion, the Vasp license was issued, allowing the firm to initiate virtual asset activities.
This strict process ensures the high standard of regulatory administration, which means that entities that meet only strict standards are allowed to operate within the Virtual Asset ecosystem of Dubai.
Mantra’s strategic positioning
With the vara license, the mantra is uniquely positioned to bridge the gap between decentralized finances and traditional finance. Company offerings will include innovative investment products that combine the benefits of the defi – such as increasing transparency, rapid trade -up -to -improvisal of the user -ownership – along with the Protections inherent in traditional financial systems.
The mantra chain, the goal developed by the Purpose Layer of Company 1, is designed to facilitate the tokenization of real-world assets. As a chain without permission, it allows developers and institutions that seamlessly engage in RWA tokenization space, which offers advanced technology modules, compliance mechanisms, and cross-chain interoperability.
In June 2024, Mantra further strengthened his commitment to compliance with regulation and change by signing a Memorandum of Understanding (MOU) with the Zand Bank PJSC This cooperation focuses on identifying clear frameworks For RWA tokenization in compliance with vara guidelines, aimed at providing transparent and secure financial solutions within UAE.
“By obtaining this license, Mantra joined a growing community of regulated creatures operating inside the UAE, and we were excited to work with industry leaders to develop the future of virtual ownership , “Mullin added.
Dubai’s growing virtual asset ecosystem
Mantra’s licensing came at a time when Dubai’s virtual asset ecosystem was experiencing rapid growth. In December 2024, Vara released 23 Vasp licenses, with prominent entities such as Binance, Bitoaasis, and Bybit to licensed operators. This expansion reflects Dubai’s strategic perspective to become a global leader in the digital economy, which attracts investments and cares for a change in the virtual owner space.
Matthew White, CEO of Vara, noted that fewer than 5% of applicants were granted a full Vasp license.
This selected approach ensures that only creatures that meet the highest standards of compliance and management are authorized to operate, thus enhancing investor confidence and market integrity.
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