Nexo Achieves Initial Regulatory Success in Dubai

Crypto News– Nexo, a prominent player in the digital asset services sector, has achieved an initial regulatory milestone in Dubai by securing approval as a licensed entity from the region’s Virtual Assets Regulatory Authority (VARA), the company announced on Tuesday.

Nexo Achieves Initial Regulatory Success in Dubai

The regulatory process for obtaining a full license involves three key stages: an initial provisional permit, a preparatory license, and finally, an operating license. Nexo’s regional entity, Nexo DTC, is actively pursuing full approval for a range of activities including Lending & Borrowing, Management & Investment, and Broker-Dealer functions.

Dubai, being the most populous city in the UAE, alongside the nation’s capital, Abu Dhabi, has been actively working to attract financial institutions, aiming to establish itself as a global hub for cryptocurrency activities. Although VARA’s public record register does not currently reflect Nexo DTC’s initial approval, it is customary for such updates to be processed within a few days of regulatory developments.

Expressing optimism about the prospects in Dubai’s regulatory environment, Kalin Metodiev, co-founder, and managing partner at Nexo stated, “Nexo is enthusiastic about the pursuit of new market strategies aligned with the transformative guidance of Dubai’s Virtual Asset Regulatory Authority.”

Nexo’s journey in the regulatory landscape has not been without challenges. Previously, the company agreed to a settlement of $45 million with the U.S. Securities and Exchange Commission (SEC) for failing to register the offer and sale of its Earn Interest Product (EIP). However, it’s worth noting that Nexo has also initiated legal action seeking $3 billion in damages from Bulgaria, citing reputational damage after an investigation by the nation found no evidence against the company.