Commercial Bank of Dubai (CBD) on Monday announced the launch of dedicated accounts for virtual asset service providers (VASPs) to manage client money and regulatory prudential requirements, in compliance with the latest regulations issued by the Central Bank of UAE and the Dubai Virtual Assets Regulatory Authority (VARA).
In recent years, Dubai has emerged as a regional and global hub for virtual assets, attracting a significant number of VASPs. Recognising the need for tailored banking solutions to support these businesses, CBD has taken proactive steps to offer specialised accounts that meet the unique requirements of VASPs, while adhering to the regulatory framework established by VARA.
CBD has also successfully onboarded Laser Digital as the first VASP to benefit from its services. Laser Digital, the digital asset subsidiary of financial services giant Nomura, was established in Dubai in August 2023 and offers trading services and a range of digital asset investment products.
CBD’s banking services for VASPs are fully compliant with VARA regulations, ensuring that VASPs operate within the legal and regulatory framework of Dubai. The segregation of client funds into multiple accounts ensures reduced risk and enhances operational efficiency.
Dr. Bernd van Linder, chief executive officer of Commercial Bank of Dubai, commented on the launch, stating, “As the financial landscape continues to evolve with the rise of digital assets, CBD remains at the forefront of innovation by providing tailored solutions that meet the needs of our diverse clientele. The introduction of core banking services for VASPs aligns with our strategic vision to support the digital economy and foster a robust regulatory environment that promotes growth and stability. As the bank that is backing the nation’s ambition, our efforts also contribute to promote the Emirate as an international hub for Virtual Assets and develop the digital economy in the Emirate.”
CBD’s initiative to enable VASP activity in the UAE comes at a time when the global cryptocurrency market is witnessing unprecedented growth and acceptance. By offering these specialized accounts, CBD aims to attract more VASPs to Dubai, encouraging companies operating in this field to base their business in the Emirate.
Jez Mohideen, CEO of Laser Digital commented: “This launch demonstrates CBD’s commitment to encouraging the growth and progress of the virtual asset ecosystem in the UAE. We’re honoured and grateful to be the first VASP to benefit from this service and we look forward to continued collaboration.”