Animoca Brands has received a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA), enabling the Web3 investment firm to operate legally in Dubai with respect to the provision of regulated digital asset services. To this point, this regulatory approval allows Animoca to act as a broker/dealer and provide investment management services, primarily to institutional and qualified investors, outside of the Dubai International Financial Centre (DIFC).
The Importance of the VARA License for Animoca’s Regional Strategy
The VARA VASP license allows Animoca Brands to shift from taking exploratory measures to taking executable actions in the Middle East. According to VARA’s published registry, the issuance of the license means that Animoca Brands is now able to actively engage under a regulated framework with Web3 projects and other forms of institutional capital.
Omar Elassar, Managing Director of Animoca Brands for the Middle East, indicated that the VARA license is an important milestone that shows a commitment to responsible participation in the market as the digital asset market continues to mature. Nevertheless, Animoca Brands’ January acquisition of Somo (the gaming collectibles company) indicates deeper integration of tokenized entertainment into its portfolio of over 600 investments.
Dubai’s Commitment to Clear Regulations
Established as the world’s first independent virtual asset regulation agency in 2022, VARA has ramped up both enforcement and licensing. Recently, VARA fined 19 firms for unlicensed and marketing-related breaches, an indication that even as the market continues to grow, the regulatory environment will continue to become more stringent.
Therefore, for Animoca (who builds various platforms like The Sandbox, Open Campus, Moca Network, etc.), holding a valid license provides a regulated off-ramp for their digital asset services targeting institutions, and thus is a significant difference compared to traditional finance interacting with Web3.
