With its clear regulations, Dubai is becoming a hub of crypto companies as HEX Trust became the latest to secure a Virtual Asset Service Provider (VASP) license from the city’s Virtual Asset Regulatory Authority (VARA).
The new license will allow HEX Trust to offer Virtual Assets Custodial Services to institutional clients and sophisticated investors in Dubai. It was granted after the company received the prerequisite MVP operational license from VARA in February 2023.
“Hex Trust is fully committed to expanding into the Middle East and sees enormous potential for digital asset growth given the progressive regulations, welcoming governments, and thriving crypto ecosystem in the region,” said Filippo Buzzi, Hex Trust’s Regional Director of MENA.
This VASP license demonstrates our commitment to compliance, regulation, and innovation in the #crypto industry. We are proud to contribute to the development of the virtual asset ecosystem in the MENA region. 💪
— Hex Trust (@Hex_Trust) November 15, 2023
Meanwhile, HEX Trust has been growing its global footprint. Based in Hong Kong, the company is moving toward the Western markets and secured a French crypto license last August. The company is also expanding through partnerships: it inked a deal with GCEX to offer staking services to institutional clients.
Crypto Companies Like Dubai
Dubai, one of the emirates in the UAE known for its encouraging service-based business, streamlined the crypto rules with a framework last year and established a separate regulatory body, VARA, to oversee the sector.
The push towards digital assets turned out to be positive as several crypto companies, big and small, are now establishing bases in Dubai and gaining local licenses. Most recently, Crypto.com and Ripple received the VASP license from VARA to expand their operations in the Middle East. Other major names with this license are Binance, Bybit, and OKX.
From Brad Garlinghouse at SWELL 2023
Dubai will become one of the #Crypto capitals of the world.
— Chad Steingraber (@ChadSteingraber) November 9, 2023
The investors in the UAE are also bullish on crypto, as a KuCoin survey revealed that 59% of crypto users in the country see the asset class as a long-term investment, recognizing it as a reliable store of value. Another 35 percent view crypto as a means to diversify their investment portfolios.