Mantra Finance has secured a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), marking a major milestone in its mission to bridge decentralized finance (DeFi) with traditional finance. The license enables the platform to offer digital asset exchange, brokerage, and investment services across the United Arab Emirates and the wider Middle East and North Africa (MENA) region.

Dubai has emerged as a global crypto hub, attracting blockchain firms with its structured regulations. Mantra CEO John Patrick Mullin praised VARA’s approach, calling it the most comprehensive regulatory framework for virtual assets and Web3. He emphasized that compliance is key to institutional adoption, as seen with the rise of crypto exchange-traded funds (ETFs) following regulatory approvals.

With its new license, Mantra aims to accelerate real-world asset (RWA) tokenization, initially focusing on institutional investors. Mullin noted that while retail access to these financial products remains a future goal, the company is committed to ensuring compliance and investor protection.

Mantra is already collaborating with major UAE firms, including Damac, Libre, MAG, Novus Aviation, and Zand, to bring billions of dollars in assets on-chain. Mullin hinted at upcoming announcements regarding tokenized assets spanning various industries.

Meanwhile, Dubai continues tightening regulations on unlicensed crypto firms. In 2024, VARA mandated clearer disclaimers on crypto promotions and issued cease-and-desist orders against non-compliant businesses. The regulator imposed fines ranging from $13,000 to $27,000 but withheld the names of the penalized companies.

As Dubai strengthens its regulatory stance, Mantra Finance's compliance-driven approach positions it as a key player in the region’s evolving digital asset landscape.