Komainu, a digital asset custodian backed by $471 billion Japanese investment bank Nomura, has received a provisional approval to operate in Dubai, according to a press release.
Dubai’s Virtual Assets Regulatory Authority (VARA) awarded operational readiness as due diligence is performed in accordance with the regulators requirements on Komainu. Hence, the company has only received provisional approval. Though, if approved, Komainu will be among the first institutions of its kind to be fully regulated in the region.
“Komainu’s entry into VARA’s regime is symbolic of the confidence and credibility that the Virtual Assets industry is gaining when backed by such strong endorsement from traditional finance leaders like Nomura,” said H.E. Helal Saeed Almarri, chairman of VARA.
Komainu is a joint venture between Japanese banking giant Nomura, digital asset manager CoinShares and digital asset security company Ledger. Through this partnership, Komainu hopes to help deliver institutional digital asset custody to the region while also helping cement Dubai’s plans in becoming a hub for bitcoin and other cryptocurrencies.
“Dubai and VARA are establishing a new hub for digital asset businesses and bringing like-minded companies into the country to help establish its growing crypto ecosystem and we look forward to contributing to these exciting developments,” said Sebastian Widmann, head of strategy at Komainu. “By expanding into the MENA region, we are bringing a much-needed service to institutions operating within a regulated crypto marketplace.”
Komainu has also chosen to host its headquarters in Dubai in order to branch out its services across the region once it secures full approval.