From the United States to the United Arab Emirates – This cryptocurrency custody company, backed by a major Japanese bank and major crypto players, can start work in Dubai, after getting the initial green light from the regulator. The company will offer its services to institutionalwho want to open up to cryptocurrencies.
Komainu under the skies of Dubai
“By expanding in the MENA region, we are providing an indispensable service to institutions operating in a regulated crypto market”: these words by Sebastian Widmann, chief strategy officer of Komainu, in the context of the regulatory victory obtained by his company in Dubai.
according to a release on July 27, 2022, Komainu obtained provisional authorization to operate in this city of the United Arab Emirates, an approval issued by the Regulatory Authority for Virtual Assets.
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A crypto custodian for institutions
Komainu is a joint venture formed by Japanese banking giant Nomura, digital asset manager CoinShares, and crypto wallet provider Ledger. As of June 2020, the company offers regulated digital asset custody services, which are dedicated to institutions.
This joint venture project was first announced in 2018. When it came to fruition, Komainu was regulated by the Jersey Financial Services Commission.
Projects subject to permanent approval
If Komainu succeeds in obtaining a permanent license to practice in Dubai, it will become one of the first companies in its sector to “act as a key gatekeeper” for institutional investors in the region.
Komainu will offer them ” the same guarantees and protections than those offered by traditional financial actors to institutions. The company specifies in its press release that its services “have been designed by experts in security, financial services and cryptocurrencies”, in addition to having been “approved by external auditors”.
Komainu also projects will establish its regional headquarters in Dubaito conquer the UAE market, when it has obtained the full approval of the regulator.
The crypto ecosystem in Dubai continues to grow, with the arrival of a new big player like Komainu, which could participate through its activities in a significant increase in the adoption of cryptocurrencies by institutions in the region. Komainu gets its temporary approval from the regulator, about two weeks later cryptocurrency exchange OKX has received its provisional license.
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