Nexo Receives Initial Approval for Dubai Expansion in Crypto Services
Nexo, a prominent player in the digital assets sector, has received a significant regulatory nod from Dubai’s Virtual Assets Regulatory Authority (VARA). This Initial Approval (IA) covers a range of key activities including Virtual Asset Lending & Borrowing, Management & Investment, and Broker-Dealer services. This approval positions Nexo as one of the first digital asset lending institutions to venture into Dubai’s dynamic market.
This strategic move by Nexo underscores the company’s commitment to the UAE’s innovative ecosystem. Dubai, renowned for its forward-looking regulations and a culture of innovation, has become a pivotal hub for fintech and blockchain ventures. The UAE’s commitment to embracing advanced technologies, including blockchain, has made it an attractive destination for top financiers and tech pioneers.
Kalin Metodiev, CFA, Co-founder and Managing Partner at Nexo, expressed the company’s enthusiasm for this new chapter, stating, “From the UAE, the global leader for vision, governance, and innovation, Nexo aims to contribute to the regional ecosystem through pioneering lending, brokerage, management, and investment solutions.”
Nexo’s expansion into Dubai comes on the heels of its recent legal challenges in other jurisdictions. In Bulgaria, the company filed for arbitration through the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) and sought $3 billion in damages from the Republic of Bulgaria. This action followed the Bulgarian government’s decision to drop a criminal investigation against Nexo and its executives, a move that Nexo claims caused reputational harm and lost growth opportunities.
For Nexo, the Initial Approval from VARA represents a significant milestone as it seeks to broaden its footprint in the Middle East. Once fully licensed, Nexo plans to offer its innovative solutions to clients in compliance with local regulations. This move not only demonstrates Nexo’s commitment to regional growth but also highlights Dubai’s growing importance as a global center for digital asset innovation.
