CoinW President on UAE Stablecoin Regulations and VASP License
CoinW is gaining attention in the crypto space. In an exclusive interview, Sonia Shaw, President of CoinW, shares insights on the exchange’s strategy and the impact of UAE’s new stablecoin regulation.
CoinW’s Market Position
CoinW, a centralized exchange established in 2017, primarily served the Asia Pacific region, including China, South Korea, Taiwan, and Hong Kong. In 2021, CoinW strategically relocated its headquarters to Dubai, UAE, leveraging the region’s supportive policies and innovative ecosystem. Since then, CoinW has been navigating local regulations and growing its presence in the MENA region.
UAE’s Stablecoin Regulations: A Positive Step
The UAE Central Bank recently announced new regulations for payment tokens, known as stablecoins in the crypto world. Shaw sees this as a significant step forward. “The Central Bank accepting stablecoins as a legal financial instrument is a positive move,” Shaw stated. This acceptance is expected to enhance trust and liquidity in the market, benefiting both users and service providers like CoinW.
Impact on Service Providers
Shaw emphasized that the new regulations won’t negatively impact service providers immediately. “There’s a transition period, allowing us to adapt and comply with the new rules,” she said. This phased approach ensures that existing stablecoins like Tether and USDC remain operational while new regulations take effect.
Competing in a Crowded Market
In a market dominated by major players like Binance and Crypto.com, CoinW focuses on safety, simplified products, and local compliance. Shaw emphasizes that CoinW does not aim to directly compete with top-tier exchanges but rather focuses on onboarding new users and providing a safe, straightforward platform for crypto transactions.
CoinW’s Commitment to Compliance
Compliance is a cornerstone of CoinW’s strategy. The exchange has been in communication with the Virtual Assets Regulatory Authority (VARA) in Dubai, trying to fulfill the necessary requirements to secure a Virtual Asset Service Provider (VASP) license, Shaw stated. This commitment underscores CoinW’s dedication to operating within a regulated framework and maintaining the highest standards of safety and compliance.
While CoinW has engaged with VARA over the past two years, it has not been part of the licensing process for a VASP license.
Navigating the Global Crypto Market
CoinW is strategically expanding beyond its initial markets in Asia-Pacific. “We relocated our headquarters to Dubai in 2021, recognizing the region’s supportive policies and innovative environment,” Shaw explained. This move aligns with CoinW’s goal to serve the MENA region and beyond, leveraging Dubai’s position as a central hub.
Future Prospects
Looking ahead, CoinW aims to capitalize on the UAE’s regulatory clarity and the growing crypto user base. “We anticipate breaking the one billion user mark globally, focusing on simplified products and local compliance,” Shaw said. This forward-thinking approach positions CoinW to attract new users while maintaining a competitive edge.
