Mantra Finance, a decentralized finance and real-world asset tokenization platform, has successfully obtained a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). This achievement enables the company to extend its operations across the United Arab Emirates and the wider Middle East and North Africa (MENA) region.
On February 19, Mantra Finance announced its approval from VARA, allowing it to function as a digital asset exchange while offering broker-dealer, management, and investment services.
Dubai and the UAE have solidified their reputation as premier destinations for cryptocurrency enterprises, attracting digital asset companies through well-structured regulatory policies. Mantra’s CEO, John Patrick Mullin, emphasized Dubai’s pioneering role in digital asset regulations, acknowledging the region’s proactive approach.
He explained to Cointelegraph that “Dubai and VARA have emerged as global leaders in crypto regulation by crafting the most up-to-date, comprehensive, and well-structured framework for virtual assets and Web3.”
“This license marks a significant milestone for Mantra and plays a crucial role in our global expansion strategy,” he added.
Mullin highlighted the UAE and MENA’s thriving Web3 ecosystem, crediting regulatory clarity as a key factor. He noted that with this license, the company can introduce decentralized finance solutions that effectively integrate DeFi with traditional finance.
The newly acquired VARA license empowers Mantra to provide financial services to institutional clients and accredited investors in the UAE.
Facilitating real-world asset tokenization for institutional investors
Mullin shared with Cointelegraph that this license will accelerate Mantra’s ability to develop regulatory-compliant financial products, further strengthening its ecosystem.
He detailed that the upcoming phase, referred to as the “real rollout of RWAs,” will be driven by regulatory advancements:
“The surge in investments into Crypto ETFs last year, following regulatory approvals, underscored the crucial role of regulation in driving institutional adoption.”
When asked about retail investors’ access to tokenization products, Mullin clarified that their primary focus remains on institutional-scale tokenization projects. However, he assured that Mantra is committed to enabling retail investors to participate in the future.
While tokenization lowers barriers to entry, Mullin reiterated Mantra’s commitment to maintaining compliance and investor protection while enhancing accessibility.
Additionally, he revealed that Mantra is already collaborating with major institutions and key players in the UAE to bring substantial assets on-chain. Partners include Damac, Libre, MAG, Novus Aviation, and Zand.
“By the end of this quarter and moving into the next, we will unveil updates on new projects aimed at tokenizing assets across diverse industries, markets, and asset classes,” Mullin added.
Dubai strengthens regulations on unlicensed crypto firms
In 2024, VARA intensified its oversight of crypto-related marketing and took decisive action against unlicensed digital asset businesses.
On September 26, the regulatory body mandated that digital asset investment promotions include clear disclaimers in advertisements. VARA specified that these disclaimers must be prominently displayed, ensuring consumers are well-informed about the volatility of cryptocurrencies.
VARA’s CEO, Matthew White, emphasized that issuing clear guidelines to VASPs enhances their ability to “offer services responsibly,” thereby fostering market trust and transparency.
On October 10, VARA took enforcement actions by issuing fines and cease-and-desist orders against seven businesses that violated marketing rules and operated without the necessary licenses. The regulator cautioned the public against engaging with unauthorized digital asset firms, highlighting the associated risks for both users and institutions.
VARA disclosed that each of the seven entities faced penalties ranging from $13,000 to $27,000. However, the regulator chose not to disclose the names of the penalized companies.
