This cryptocurrency custody company backed by a major Japanese bank and major crypto players, can start working in Dubai, after it got an initial green light from the regulator. The company will offer its services there to institutional investors, who want to open up to cryptocurrencies.
Komainu under the skies of Dubai
“By expanding into the MENA region, we are providing a much-needed service to institutions operating in a regulated crypto market”: these words from Sebastian Widmann, chief strategy officer at Komainu, come against the backdrop of his company’s regulatory win in Dubai.
According to a July 27, 2022 statement, Komainu has been granted provisional approval to operate in the UAE city, an approval issued by the Virtual Assets Regulatory Authority.
A crypto custodian for institutions
Komainu is a joint venture formed by Japanese banking giant Nomura, digital asset manager CoinShares, and crypto wallet provider Ledger. Since June 2020, the company has been offering regulated digital asset custody services, which are dedicated to institutions.
This joint venture project was first announced in 2018. Upon its realization, Komainu was regulated by the Jersey Financial Services Commission.
Projects under permanent approval
If Komainu succeeds in obtaining a permanent approval to operate in Dubai, then it will become one of the first companies in its industry to “act as a key keeper” for institutional investors in the region.
Komainu will offer them “the same guarantees and protections”, as those offered by traditional financial players to institutions. The company states in its release, that its services “have been designed by experts in security, financial services and cryptocurrencies”, in addition to having been “approved by external auditors”.
Komainu furthermore plans to set up its regional headquarters in Dubai, to conquer the UAE market, once it gets full approval from the regulator.
The crypto ecosystem in Dubai continues to grow, with the arrival of an important new player like Komainu, which could participate through its activities, to a significant increase in the adoption of cryptocurrencies by institutions in the region. Komainu gets its temporary approval from the regulator, about two weeks after cryptocurrency exchange OKX received its provisional license.
