Nexo, the cryptocurrency lending platform, is moving forward with its global expansion plans after receiving initial approval from Dubai’s Virtual Assets Regulatory Authority (VARA). This approval is granted to Nexo Services FZE and encompasses virtual asset lending and borrowing, management and investment, and broker-dealer services.
The company is now set to progress through subsequent phases, aiming to obtain a preparatory license followed by the final operating license. Once completed, Nexo will be able to offer its crypto services to regional clients through its mobile and web platforms.
Kalin Metodiev, co-founder and managing partner at Nexo, sees this initial approval as a crucial milestone in their global expansion journey, highlighting the company’s sustainable operations, risk management practices, and focus on institutional-grade security.
Nexo’s move to the United Arab Emirates follows its recent challenges in the United States and Bulgaria. In the U.S., the company announced the wind-down of its Earn Interest offering for U.S. customers after agreeing to pay $45 million in penalties for regulatory violations.
Meanwhile, in Bulgaria, Nexo faced legal issues related to alleged illicit operations, leading to a claim for $3 billion in damages. However, these allegations were dismissed due to the country’s unclear legal framework for crypto assets.
The UAE has emerged as an attractive destination for global crypto players due to its regulatory clarity and compliance pathways. Financial hubs like Abu Dhabi and Dubai have become magnets for crypto businesses seeking a conducive regulatory environment.
Earlier this year, crypto exchange OKX’s Dubai subsidiary received a VASP license from VARA for exchange services, highlighting the growing interest in the region. Despite regulatory hurdles, companies are optimistic about fulfilling compliance requirements and tapping into the UAE’s burgeoning crypto market.
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