Nexo, a provider of digital asset services, announced that its Dubai entity, NEXO DWTC received preliminary approval as a licensed entity in Dubai from the region’s Virtual Assets Regulatory Authority (VARA). This approval positions Nexo as one of the first digital asset lending institutions to gain a foothold in the burgeoning Dubai market.
Dubai and Abu Dhabi, are actively wooing financial institutions in their quest to become a global cryptocurrency hub. To achieve this goal, they have implemented a three-step licensing process: a preliminary approval, followed by an operating license, and finally, an initial provisional permit.
The goal of Nexo DTC, the company’s regional arm, is to obtain complete authorization for its Broker-Dealer, Management & Investment, and Lending & Borrowing operations. Once fully licensed, Nexo’s services, including lending, borrowing, management, and investment solutions, will be offered through the company’s mobile and web platforms in compliance with local regulations.
Although Nexo DTC has yet to receive initial clearance, VARA’s public record register is typically updated a few days after such progress is made.
Metodiev, co-founder and managing partner at Nexo, stated, “Nexo is enthusiastic about the pursuit of new market strategies aligned with the transformative guidance of Dubai’s Virtual Asset Regulatory Authority.”
“From the UAE, a global leader in vision, governance, and innovation, Nexo aims to contribute to the regional ecosystem through our pioneering financial solutions,” said Kalin Metodiev, CFA, Co-founder and Managing Partner at Nexo. “We are excited to pursue new market strategies aligned with the transformative guidance of Dubai’s Virtual Assets Regulatory Authority.”
In the past, Nexo settled with the SEC to pay $45 million for neglecting to register the offer and sale of its Earn Interest Product (EIP). However, it has also demanded $3 billion in damages from Bulgaria for defaming it, even though the country’s probe showed no proof against the business.
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