The Dubai Digital Belongings Regulatory Authority (VARA) has issued a Digital Asset Service Supplier (VASP) license to the crypto pockets Backpack, ensuing within the launch of Backpack Alternate.
Backpack’s VARA license is proscribed to crypto change providers in Dubai and doesn’t permit the corporate to supply some other of its digital asset services. In response to the announcement, the Backpack change incorporates zero-knowledge proof of reserves (zk-proofs), Multi-Social gathering Computation (MPC) for custody and low latency order execution, amongst different options.
The announcement additionally revealed that the Backpack change bagged operational licenses throughout a number of jurisdictions worldwide over the previous 5 months.
— Backpack (@xNFT_Backpack) October 31, 2023
The flagship Backpack Pockets at present stands as an unregulated product; nevertheless, it’s designed to assist customers transition from fiat to on-chain functions sooner or later. Backpack CEO and co-founder Armani Ferrante shared his intent to “put an finish” to the opacity of crypto exchanges.
Talking in opposition to the norm of working full-fledged crypto exchanges with a single level of failure and with out proof of reserves or auditability, Ferrante acknowledged:
“Utilizing cryptographic methods like zk-proofs, MPC, and state machine replication, Backpack Alternate hopes to lift the bar for transparency and compliance to reveal the very best this expertise has to supply. Do not belief, confirm.”
Current Backpack and Mad Lads customers will achieve preliminary entry to the Backpack change from November 2023 and will probably be made public in Q1 of 2024. Throughout this time, Backpack plans so as to add varied buying and selling functionalities corresponding to derivatives, margin, and cross-collateral into its providing
Backpack has not but responded to Cointelegraph’s request for remark.
Dubai VARA regulator issued varied levels of operational licenses to quite a few crypto exchanges over the previous 12 months, additional strengthening its place as a crypto-friendly jurisdiction.
Dubai’s Vurtual Belongings and Regulatory Authority issued the long-awaited Full Market Rules for Vurtual Belongings Providers Suppliers (VASPs).
— Irina ₿. Heaver (@IrinaHeaver) February 7, 2023
In February 2023, the regulator issued new pointers for VASPs working throughout the emirate. All crypto exchanges should adhere to advertising and marketing, promoting and promotions rules. Violators will probably be fined between 20,000 dirhams ($5,500) and 200,000 dirhams ($55,000), and repeat offenders may see fines as excessive as 500,000 dirhams ($135,000).