Nexo, a prominent digital assets institution and a leading crypto lending platform, has achieved a significant milestone by gaining preliminary approval from Dubai’s Virtual Assets Regulatory Authority. This regulatory approval marks a new chapter for Nexo, emphasizing the company’s dedication to compliance and expansion into a new market.

The approval granted to Nexo allows the institution to offer a range of services in Dubai, including lending, borrowing, investment, and broker-dealer services for virtual assets. This development signals a positive shift for Nexo following regulatory challenges faced in various jurisdictions.

Receiving this Initial Approval (IA) is a noteworthy accomplishment for Nexo, positioning the company as one of the pioneering digital asset lending institutions entering Dubai’s important market.

Kalin Metodiev, CFA, co-founder and Managing Partner at Nexo, expressed excitement about the company’s entry into the UAE, a region known globally for its vision, governance, and innovation.

Metodiev highlighted Nexo’s commitment to enhancing the regional ecosystem through innovative lending, brokerage, management, and investment solutions. He emphasized the alignment of Nexo’s market strategies with the guidance provided by Dubai’s Virtual Assets Regulatory Authority (VARA).

The regulatory landscape for cryptocurrencies and digital assets in the Middle East is evolving, with a focus on establishing transparent guidelines and regulatory oversight.

Established in March 2022, VARA is the regulatory body responsible for overseeing virtual assets and related activities in Dubai. The licensing process with VARA follows a structured pathway, starting with the IA phase before progressing to a fully operational license. Virtual assets regulations were published in February 2023.

VARA’s public register lists several crypto companies actively engaging with the regulatory authority in the region, including OKX, Nine Blocks Capital, Bybit, and BitOasis.

For more information on the latest developments in the cryptocurrency industry, continue exploring news on Global Crypto News.

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