Crypto Lender Nexo Secures First Regulatory Victory in Dubai

Nexo, a company offering digital asset services, has won initial approval as a licensed entity in Dubai from the region’s Virtual Assets Regulatory Authority (VARA), it announced Tuesday.

Receiving a full license involves three stages: an initial provisional permit, a preparatory license, and an operating license. Nexo’s regional entity, Nexo DTC, is seeking to win full approval for Lending & Borrowing, Management & Investment, and Broker-Dealer activities.

Dubai is the most populous city in the UAE, and along with the nation’s capital, Abu Dabhi, it has been trying to attract financial institutions as it vies to become a global crypto hub. While VARA’s public record register does not show Nexo DTC having won an initial approval yet, the register is usually updated within a few days of such developments.

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

Previously, Nexo agreed to pay $45 million to the SEC for failing to register the offer and sale of its Earn Interest Product (EIP). But it has also sought $3 billion in damages from Bulgaria for bringing it disrepute after the nation’s investigation found no evidence against the company.

Read More: Crypto Lender Nexo Seeking $3B in Damages From Bulgaria