Mantra Finance, a top-class decentralized finance and real-world asset tokenization platform, has secured a virtual asset service provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). The approval allows the platform to stretch its operations in the United Arab Emirates, Middle East, and North Africa (MENA).
Mantra announced on February 19 that VARA issued them a VASP license to operate as a digital asset exchange and provide broker-dealer, management, and investment services.
Dubai and the UAE have been strategically positioned as leading forces in cryptocurrency. The two are leading hubs attracting crypto firms due to their structured regulatory frameworks. According to Mantra’s CEO, John Patrick Mullin, Dubai’s VARA has become a big shot in crypto regulations.
Mullin was impressed by Dubai’s VARA’s efficiency after it established its framework from the ground and ensured it worked. He acknowledged that the license was a big win for Mantra in its global expansion journey.
The CEO praised the UAE and the MENA for creating a flourishing Web3 ecosystem due to regulatory clarity. He also said that their license would allow them to offer services that bridge DeFi and traditional finance.
Mantra strategically offers services to institutional clients and qualified investors in the UAE.
Mantra to open up asset tokenization to institutional investors
Mantra’s VARA license will accelerate its desire to build regulatory-compliant financial products to strengthen its ecosystem. Mullin said that regulations will drive the rollout phase.
According to the sources, Mantra is keen to attract institutional clients since it wants to embark on tokenization projects at scale. However, with time, retail investors will be able to access existing opportunities.
He noted that while tokenization reduces barriers to entry, Mantra will ensure compliance and investor protection while expanding accessibility. Already, Mantra is working with big players and institutions within the UAE to bring billions in assets to the onchain. Some of the partnerships they follow include Damac, Libre, MAG, Novus Aviation, and Zand.
The firm is confident that by the end of the first quarter and going into the second quarter, it will have new projects to tokenize assets across different spaces, including industries, markets, and classes.
VARA tightened rules on crypto marketing
Vara has been exercising its authority accordingly. Late last year, the firm went out fully, tightening rules on digital asset marketing. It also led to a crackdown on crypto firms operating without licenses.
The authority insisted that any crypto advertisement must bear a clear disclaimer. They argued that a prominently displayed disclaimer informing customers of crypto volatility is mandated.
VARA CEO Matthew White said providing actionable guidance to VASPs allows them to “deliver their services responsibly” and fosters trust and transparency in the market.
In the year’s final quarter, the digital asset regulator issued fines and cease-and-desist orders to entities that contravened the marketing rules and operated without approvals. The regulating authority has warned the public against engaging with unlicensed crypto exchanges, stating that the risks are too high.
The regulator issued fines ranging from $13,000 to $27,000 to each accused entity. However, VARA did not reveal the names of the companies that received the fines.
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Source: https://www.cryptopolitan.com/mantra-gets-license-to-expand-crypto-service/