Standard Chartered Receives License from VARA for Crypto Trading in the UAE

Standard Chartered has obtained licensing approval from Dubai's Virtual Assets Regulatory Authority to offer Bitcoin and Ether trading services to its professional investor clients in the UAE.

The offering relies on a closed-loop custody and settlement model, developed in collaboration with Zodia Markets, which is backed by SC Ventures.

This offering is reported to be the first of its kind for an international bank in the UAE.

Rola Abu Manneh, Chief Executive Officer of the bank in the UAE, Middle East, and Pakistan, stated that the UAE was the natural choice to launch the service due to its forward-looking approach to innovation, strong regulatory environment, and growing role in digital assets, adding that it is one of four global wealth hubs for the bank. The offering is currently limited to professional investors, with plans by the bank to expand it to other markets in the coming period.

What Do These Terms Mean?

Virtual Assets Regulatory Authority (VARA): The regulatory authority in Dubai responsible for licensing and supervising virtual asset and cryptocurrency activities.

Closed-Loop Custody Model: An arrangement in which digital assets are safeguarded and settled within a single ecosystem without leaving it, thereby reducing the risks associated with transferring assets to third parties.

Professional Investor: A client who possesses the experience or wealth that qualifies them to deal in high-risk investment products.