Mantra Finance, a world-class decentralized finance and real-asset tokenization platform, has obtained a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA). The approval allows the platform to expand its operations in the UAE, Middle East and North Africa (MENA).
Mantra announced on February 19 that VARA has issued them a VASP license to operate as a digital asset exchange and provide brokerage, management, and investment services.
Dubai and the UAE have strategically positioned themselves as leading forces in cryptocurrencies. Both are leading hubs that attract crypto companies due to their structured regulatory frameworks. According to Mantra CEO John Patrick Mullin, Dubai’s VARA has emerged as a big player in crypto regulations.
Mullin was impressed by the efficiency of Dubai-based VARA after he established its framework from scratch 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 MENA for creating a thriving Web3 ecosystem due to regulatory clarity. He also said that their license would allow them to offer services that connect DeFi and traditional finance.
Mantra strategically serves institutional clients and qualified investors in the UAE.
Mantra to open 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 the regulation will boost the implementation phase.
According to sources, Mantra is keen to attract institutional clients as it wants to embark on large-scale tokenization projects. However, with time, retail investors will be able to access the existing opportunities.
He noted that while tokenization lowers 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 on-chain. Some of the partnerships that follow include Damac, Libre, MAG, Novus Aviation, and Zand.
The firm is confident that by the end of Q1 and entering Q2, it will have new projects to tokenize assets in different spaces, including industries, markets, and classes.
VARA tightened rules on cryptocurrency trading
Vara has been exercising its authority accordingly. Late last year, the firm went completely out of business, tightening rules on the trading of digital assets. It also led to a crackdown on cryptocurrency companies operating without licenses.
The authority insisted that any cryptocurrency advertisement must carry a clear notice. They argued that a prominent notice informing customers about the volatility of cryptocurrencies is required.
VARA CEO Matthew White said providing practical guidance to VASPs allows them to “offer their services responsibly” and fosters trust and transparency in the market.
In the last quarter of the year, the digital asset regulator imposed fines and cease-and-desist orders on entities that contravened trading rules and operated without approvals. The regulatory authority has warned the public against getting involved with unauthorized cryptocurrency exchanges, stating that the risks are too high.
The regulator imposed fines ranging from $13,000 to $27,000 on each accused entity. However, VARA did not reveal the names of the companies that received the fines.