Obtaining a formal license involves three stages: an initial provisional license, a preliminary license, and an operating license.
- Nexo has received preliminary approval to operate as a licensed entity in Dubai.
- Nexo’s regional entity is seeking full approval for lending, management and investment, and broker-dealer activities.
Nexo, a company that provides digital asset services, has received preliminary approval from the Dubai Virtual Asset Regulatory Authority (VARA) to become an authorized entity in Dubai, the company announced on Tuesday.
Obtaining a formal license involves three stages: an initial provisional license, a pre-license, and an operating license. Nexo’s regional entity, Nexo DTC, is seeking full approval for lending, management and investment, and broker-dealer activities.
Dubai is the most populous city in the UAE and, along with the country’s capital Abu Dhabi, has been working to attract financial institutions in its bid to become a global cryptocurrency hub. While VARA’s public record register does not show that Nexo DTC has received preliminary approval, the register is typically updated within a few days of such developments.
Kalin Metodiev, co-founder and managing partner of Nexo, said: “Nexo is keen to pursue new market strategies that are in line with the Dubai Virtual Asset Authority’s transformative guidance.”
Nexo previously agreed to pay $4500 million to the SEC for failing to register offers and sales of its interest-earning products (EIPs). But it is also seeking $30 billion in damages from Bulgaria for reputational damage after the country’s investigation found no evidence against the company.