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On Tuesday, Nexo announced its Dubai entity, Nexo DWTC, had secured preliminary approval from Dubai’s Virtual Assets Regulatory Authority (VARA) to engage in virtual asset lending, borrowing, and broker-dealer activities within the UAE’s most populous city.
Nexo Gains Initial VARA Approval for Dubai Crypto Operations
The crypto lender Nexo received a provisional “Initial Approval [IA]” nod from VARA, marking its entry into Dubai’s burgeoning crypto market. Nexo explained that this IA paves the way for it to be among the early digital asset lending entities aiming to penetrate Dubai’s expanding sector.
Upon obtaining its license, Nexo shared with Bitcoin.com News that its services would become available to its clientele via the Nexo platform, ensuring adherence to regional laws and offering ease of access through both mobile and desktop interfaces.
“From the UAE, the global leader for vision, governance, and innovation, Nexo aims to contribute to the regional ecosystem through pioneering lending, brokerage, management, and investment solutions,” Kalin Metodiev, CFA, co-founder and managing partner at Nexo said in a statement. Metodiev added:
Nexo is enthusiastic about the pursuit of new market strategies aligned with the transformative guidance of Dubai’s Virtual Asset Regulatory Authority.
The licensing journey with VARA is a structured three-step pathway, beginning with the IA phase as the foundational step prior to obtaining VARA’s approval for a fully operational license. Over the past year, several crypto and blockchain firms are committed to getting full licensure from VARA. VARA formally came into existence in 2022, with the regulations governing virtual assets in the area being published by VARA on Feb. 7, 2023.
Nexo’s announcement arrives as Dubai, along with Abu Dhabi and the wider UAE, emerges as a thriving center for crypto enterprises looking to establish their presence. According to VARA’s public register, several crypto companies such as Okx, Nine Blocks Capital, Bybit, and Bitoasis are actively engaging with VARA.
What do you think about Nexo’s IA greenlight from VARA? Share your thoughts and opinions about this subject in the comments section below.