Dubai’s VARA grants conditional crypto license to climate-focused Web3 launchpad

Dubai’s Virtual Assets Regulatory Authority (VARA) has conditionally licensed Enjinstarter’s AYA platform to provide virtual asset management and investment services. This recent stride, announced on December 11, allows AYA to offer crypto asset and investment services, marking a notable step in the region’s embrace of blockchain technology and digital assets.

Enjinstarter stands at the forefront as an advanced ecosystem and launchpad, dedicated to nurturing and propelling forward-looking projects in Web3 gaming, artificial intelligence, entertainment, environmental initiatives, and metaverse developments. Since its establishment, it has played a pivotal role in the growth of 80 different companies. 

Marking a significant milestone in October 2023, Enjinstarter unveiled AYA, a climate-focused launchpad arm of the Web3 launchpad and advisory firm. This innovative venture successfully secured funding of US$5 million in its Series A financing round, with True Global Ventures 4 Plus as a key investor. 

However, it is important to know that the recent VARA license is contingent upon AYA fulfilling specific prerequisites set by the Dubai regulator. These conditions must be met before the commencement of their services. The company is required to satisfy all VARA’s conditions, undergo regulatory verification, and obtain final approval to become fully operational.

Enjinstarter’s AYA: Pioneering sustainability through blockchain

AYA supports sustainable initiatives such as reforestation, nature credits, mangrove conservation, and sustainable agriculture. AYA’s mission aligns closely with emerging global trends of integrating environmental concerns into financial and technological innovations.

Prakash Somosundram, the co-founder and CEO of Enjinstarter and the AYA Foundation, expressed the company’s commitment to adhering to VARA’s regulatory framework. He said: “  This is a great day for AYA and a huge milestone for us. The VASP license process demonstrates our compliance with the VARA process as we leverage Web3 to help bridge the climate financing gap.”

Furthermore, AYA collaborated with The Storey Group in the United Arab Emirates to plant mangroves in Dubai, thus highlighting its active role in environmental conservation. Vasseh Ahmed, the Managing Director of Enjinstarter MENA, emphasized the company’s focus on working with projects that offer unique propositions in key areas like sustainability.

VARA’s approach to regulation

VARA’s approach to regulation, as described by Deepa Raja Carbon, Managing Director and Vice Chair at VARA, is both consultative and collaborative. The regulator engages with a broad range of stakeholders, including industry leaders, innovators, peer regulators, and legislators. This strategy ensures its guidelines are comprehensive and in tune with market needs and realities.

VARA works with Dubai’s established entities, such as the Department of Economy and Tourism (DET) and the Dubai Free Zones Council (DFZC), crafting a unified and flexible regulatory framework. This approach positions Dubai as a forward-thinking player in the global cryptocurrency market, fostering an environment conducive to innovation while ensuring investor protection and market integrity.