GCEX has become the latest entity to secure an operational virtual asset service provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA) after nearly one year of application process.
In a statement, GCEX noted that the new license will allow it to offer broker-dealer services to Dubai residents, particularly institutional investors. GCEX added that with the approval obtained from VARA, hedge funds, family offices, brokers, and professional investors can access a range of digital asset services, including trading and custodial services.
Using its proprietary XplorDigital solution, GCEX says institutional traders can access deep liquidity and high-end security measures while being a “technology-agnostic platform.” GCEX Dubai Managing Director Mehtap Onder confirmed that the firm employs global best practices like separating clients’ funds to prevent the commingling of assets and seeking regulatory approvals before starting operations.
“Being a regulated entity in the region is important to us—it’s the ideal way to demonstrate our commitment to adhering to international standards and implementing robust processes, with transparency and investor protection at the core of our offering,” said Onder. “This is a major milestone for our business and is critical to GCEX’s growth strategy, enabling us to have a stronger presence in the region.”
Founded in 2018, GCEX entered the Dubai market in 2022 at the start of the emirate’s transition to becoming a Web3 hub. Shortly after launching an operational hub in the country, GCEX obtained a Minimal Viable Product (MVP) Preparatory License from VARA, setting the stage for full approval.
Onder cited Dubai’s pro-Web3 stance and crystal-clear regulations as major reasons for the company’s decision to pursue full regulatory compliance in Dubai. Going forward, the company promises to release innovative products with consumer protection at the core in a nod to VARA’s strict regulatory standards.
“VARA is leading the way in the global digital asset industry, and we are extremely proud to be one of the first firms to receive a VASP Operating Licence to provide Virtual Asset Broker-Dealer services and the first firm to gain approval to operate with a client money account, highlighting our focus on client protection,” Onder said.
Dubai’s road to becoming Web3 hub
Dubai’s ambition to become the leading Web3 hub in the Gulf has gotten off to a bright start, with the emirate establishing VARA and rolling out a regulatory rulebook for industry players. Since VARA’s establishment, a number of firms, including Binance, OKX, Komainu, and BitOasis, have obtained regulatory approval to offer digital asset services to residents.
VARA announced a change of leadership in mid-November, with current CEO Henson Orser stepping down for consummate finance professional Mathew White ahead of full market operations. Despite the leadership reshuffling, the regulator says it will not lower its standards for intending firms seeking registration in the region.
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