blockchainreporter.net
In a significant development for the digital asset landscape, Nexo DWTC, the Dubai entity of leading digital assets institution Nexo, has received Initial Approval (IA) from Dubai’s Virtual Assets Regulatory Authority (VARA). This approval marks a pivotal moment for Nexo, positioning it as one of the first digital asset lending institutions to make strides into the influential Dubai market.
The IA permits Nexo to engage in Virtual Asset Lending & Borrowing, Management & Investment, and Broker-Dealer activities within the region. This is a notable advancement for Nexo, which aims to offer these services to its clients through the Nexo platform, ensuring compliance with local regulations and accessibility through both mobile and web platforms.
Nexo Advances in UAE
Dubai, recognized globally for its futuristic approach towards finance and entrepreneurship, continues to set the pace with its adoption of advanced technologies like blockchain. The city’s commitment to creating a thriving ecosystem for tech pioneers and visionary companies is well acknowledged. In this environment, Nexo aims to contribute significantly by introducing innovative lending, brokerage, management, and investment solutions, as outlined by Kalin Metodiev, CFA, Co-founder, and Managing Partner at Nexo.
The UAE’s leadership has been instrumental in promoting the region as a hub for global innovation, governance, and visionary leadership. This aligns with Nexo’s objectives to pioneer new market strategies that resonate with Dubai’s transformative guidance under VARA. Dubai’s early adoption of blockchain strategies in 2016 and the establishment of VARA in 2022 highlight its commitment to becoming a global center for digital asset innovation. This initiative mirrors the city’s longstanding influence in the traditional finance sector.
For Nexo, which serves over 7 million users worldwide, the Dubai market represents a significant opportunity for regional growth and the provision of premium services. Nexo has established itself as the world’s leading digital assets institution, dedicated to maximizing the value and utility of digital assets.
It offers a comprehensive suite of products for both retail and institutional clients, including advanced trading solutions, liquidity aggregation from leading venues, and flexible asset-backed credit lines. Additionally, Nexo launched its investment arm, Nexo Ventures, in 2022, which now boasts over 60 portfolio companies and has processed over $130 billion for its 7 million users across more than 200 jurisdictions.
VARA, established in March 2022 following the enactment of Law No.4 of 2022, is tasked with regulating, supervising, and overseeing Virtual Assets and VA Activities across all zones in the Emirate of Dubai, excluding the Dubai International Financial Centre. VARA’s central role in creating an advanced legal framework aims to protect investors, establish international standards for Virtual Asset industry governance, and support the vision of a borderless economy.