TOKO FZE has acquired a coveted operating license from Dubai’s Virtual Asset Regulatory Authority (VARA). Born out of multinational law firm DLA Piper, TOKO is a Web3 FinTech platform that allegedly enables quick, cost-effective asset transactions for issuers and investors. According to experts, this significant regulatory approval positions TOKO as a leading force in the virtual asset ecosystem and paves the way for Hedera Hashgraph, the blockchain technology powering TOKO, to gain further credibility and market share.
On September 11, Hedera took to Twitter to announce the TOKO Network’s acquisition of VARA licence:
1/ 🇦🇪 @TOKO_network has secured operating license approval from Dubai’s Virtual Assets Regulatory Authority (VARA), emphasizing the #tokenization platform's firm commitment to operating with transparency, accountability, & regulatory compliance. #Hederahttps://t.co/2QasVFLAMe
— Hedera (@hedera) September 11, 2023
The license explicitly allows TOKO to function as a virtual asset broker-dealer and operate a full-service exchange in Dubai. Scott Thiel, Managing Director of TOKO, expressed enthusiasm, saying, “We are thrilled to be issued this VARA license by the world’s only exclusive regulator for the VA sector”.
According to the report in a press release, this approval underscores TOKO’s commitment to transparency, regulatory compliance, and accountability. It also sets a precedent for other virtual asset service providers seeking to enter highly regulated markets, signaling Dubai’s leadership in setting a clear regulatory path for the virtual asset industry.
Notably, the license’s acquisition has broader implications for Hedera Hashgraph, which provides the blockchain infrastructure for TOKO’s platform. While Hedera’s market performance has been fluctuating with its current trading price at $0.045907 and a 24-hour drop of 4.42%, the deal could turn the tide in favor of Hedera. Gaining a foothold in a strictly regulated market like Dubai could boost investor confidence, potentially leading to an uptick in Hedera’s $1.5 billion market cap.
The VARA license empowers TOKO to offer an end-to-end virtual asset solution, transforming traditional asset management and promoting financial inclusion. By receiving the license, TOKO has undergone a comprehensive regulatory compliance review, fulfilling VARA’s aim to foster a globally interoperable ecosystem for responsible innovation in the virtual asset sector.
