The Virtual Assets Regulatory Authority (VARA) of the area has granted Nexo, a provider of digital asset services, preliminary authority to operate as a licensed organization in Dubai. The company made this announcement on Tuesday.
Three steps are required to obtain a full license: a preliminary license, an operating license, and 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.
In an effort to become a major worldwide hub for cryptocurrencies, Dubai, the most populous city in the United Arab Emirates, and Abu Dabhi, the capital, have been courting financial institutions. The public record register maintained by VARA is updated within a few days of such occurrences, even though Nexo DTC has not yet received initial clearance.
“Nexo is enthusiastic about the pursuit of new market strategies aligned with the transformative guidance of Dubai’s Virtual Asset Regulatory Authority,” said Kalin Metodiev, co-founder and managing partner at Nexo.
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 turned up no proof against the business.