MANTRA becomes first DeFi platform to secure VARA license in Dubai

Decentralised finance platform MANTRA has hit a major milestone after it secured a virtual asset service provider license in Dubai.

MANTRA, a leading real-world assets player, announced on February 19 that Dubai’s Virtual Assets Regulatory Authority (VARA) has approved its VASP license application, a move that allows the DeFi protocol to offer its services as a Virtual Asset Exchange.

The license also means the platform can now operate as a registered broker-dealer as well as offer management and investment services. ‍

What does this mean for MANTRA?

MANTRA looks to use this milestone as the foundation of its expansion across the United Arab Emirates.

The platform’s ambitions also include traction in the Middle East and North Africa (MENA) region, part of the mission to go global.

“By establishing the most timely, comprehensive and built from-the-ground-up framework for virtual assets and Web3, Dubai and VARA have become world leaders in crypto regulation. This license was a crucial step for MANTRA and a key step in our journey towards global expansion,” John Patrick Mullin, chief executive officer of MANTRA, said in a statement.

OM, the native token of Mantra Chain, has exploded over the past several months amid MANTRA’s RWA growth.

On Wednesday, OM price hovered at $7.52, up more than 27% this past week and 102% in the past 30 days.

Regulatory compliance in the UAE and MENA, amid the regions’ increasingly crypto-friendly stance, offers an opportunity to promote DeFi adoption globally. It also means further closing of the gap between DeFi and TradFi. 

MANTRA will look to offer institutional and qualified investors access to a platform built to deliver a “future-focused financial ecosystem.”. 

“Our regulatory compliance is fundamental to the trust we build with users, and it reflects our long-term vision of driving responsible growth in the digital asset space,” Mullin added.

Crypto regulation across the world

MANTRA’s licensing as a VASP in Dubai comes at a time VARA has increased its regulatory scrutiny on the digital asset providers’ space. 

In 2024, the regulator rolled out guidelines that outlined stringent rules on marketing of digital assets.

The agency also tightened its oversight on crypto exchanges, with multiple platforms hit with cease-and-desist orders.

The move aligns with the global trend that sees several countries and jurisdictions enact legal frameworks and rules for crypto companies and other industry players.

Dubai has attracted several top crypto companies and individuals, who have set up shop in the UAE amid a more crypto-friendly regulatory environment.

Meanwhile, the US has seen a notable shift in crypto regulatory approach since President Donald Trump’s election.

However, it still lags the traction seen across Europe, particularly with the rollout of the Markets in Crypto Assets (MiCA) rules.

But with new leadership for the SEC and CFTC in place, the industry optimistic.

The post MANTRA becomes first DeFi platform to secure VARA license in Dubai appeared first on Invezz