Digital asset platform Nexo has secured a crucial first step towards offering its services in Dubai, receiving initial approval for licensing from the region's Virtual Assets Regulatory Authority (VARA). This move signifies Nexo's intent to enter the emirate's burgeoning crypto space and aligns with Dubai's ambitions of becoming a global hub for the cryptocurrency industry.
Nexo's Dubai-based entity, Nexo DTC, is seeking full approval to operate within the emirate, specifically for lending, borrowing, investment, and broker-dealer activities related to digital assets. Obtaining a complete license from VARA involves a three-stage process: an initial provisional permit, a preparatory license, and finally, an operating license. While Nexo DTC has secured the first stage, the VARA public record register is expected to reflect the approval within the coming days.
Nexo's co-founder and managing partner, Kalin Metodiev, expressed his enthusiasm about the development, highlighting the company's commitment to adhering to the regulatory framework established by VARA. This sentiment underscores the increasing importance regulatory clarity plays in the evolving landscape of digital assets.
Dubai's efforts to attract companies like Nexo stem from its aspirations to become a prominent player in the global crypto scene. The emirate has implemented a series of initiatives to foster a crypto-friendly environment, including establishing VARA in 2022 to regulate the sector. These efforts have already attracted the attention of several major cryptocurrency firms, such as Binance, Crypto.com, and OKX, which have established a presence in Dubai.
Nexo's progress towards obtaining a license in Dubai is a significant development for both the company and the emirate. It signifies Nexo's commitment to expanding its global reach while adhering to regulatory frameworks. For Dubai, it represents another step forward in its pursuit of becoming a leading hub for the cryptocurrency industry. As Nexo navigates the remaining stages of the licensing process, the industry will be watching closely to see if it can solidify its presence in Dubai's burgeoning crypto ecosystem.