Nexo, a prominent player in the digital asset service industry, has achieved a significant regulatory milestone by obtaining initial approval to operate as a licensed entity in Dubai. This development marks the first step in Nexo’s endeavor to secure full licensing for a range of activities including Lending & Borrowing, Management & Investment, and Broker-Dealer operations under the oversight of Dubai’s Virtual Assets Regulatory Authority (VARA).
Three-Stage Licensing Process
Securing a full license in Dubai involves a comprehensive three-stage process, starting with an initial provisional permit, followed by a preparatory license, and culminating in an operating license. Nexo’s regional arm, Nexo DTC, is actively pursuing full approval to expand its services within Dubai’s burgeoning crypto landscape.
Dubai’s Ambition as a Global Crypto Hub
Dubai, the UAE’s most populous city, alongside the nation’s capital, Abu Dhabi, is aggressively positioning itself as a global center for cryptocurrency and financial innovation. This ambition aligns with Nexo’s strategic goals and its commitment to comply with the regulatory frameworks set forth by VARA. While VARA’s public records have yet to reflect Nexo DTC’s initial approval, updates to the registry are expected to follow shortly, acknowledging this pivotal step forward for Nexo.
Nexo’s venture into Dubai’s market comes after its agreement to settle a $45 million penalty with the SEC regarding the unregistered sale of its Earn Interest Product. Additionally, Nexo has sought $3 billion in damages from Bulgaria, claiming reputational harm following an investigation that reportedly found no incriminating evidence against the company.
Forward-Looking Statements from Nexo
Kalin Metodiev, co-founder and managing partner at Nexo, expressed enthusiasm for the company’s future prospects and strategic alignment with Dubai’s regulatory vision. “Nexo is enthusiastic about the pursuit of new market strategies aligned with the transformative guidance of Dubai’s Virtual Asset Regulatory Authority,” stated Metodiev.
This regulatory approval in Dubai represents a crucial step for Nexo as it seeks to consolidate its presence in a competitive global market, demonstrating its commitment to regulatory compliance and innovation in the digital asset space.
