Nexo DWTC Receives Initial Approval for Crypto Operations in Dubai

In a significant development for the crypto lending sector, Nexo DWTC announced its preliminary approval from Dubai’s Virtual Assets Regulatory Authority (VARA) to engage in virtual asset lending, borrowing, and broker-dealer activities within the UAE’s bustling city. This provisional “Initial Approval [IA]” nod marks Nexo’s entry into Dubai’s rapidly expanding crypto market, positioning it as one of the early players in digital asset lending in the region.

With this initial approval, Nexo DWTC is set to offer its services through the Nexo platform, ensuring compliance with regional laws and providing seamless access via both mobile and desktop interfaces. Kalin Metodiev, CFA, co-founder, and managing partner at Nexo, expressed enthusiasm about the company’s strategic alignment with Dubai’s Virtual Asset Regulatory Authority’s guidance, highlighting their commitment to innovative market strategies tailored to Dubai’s regulatory framework.

Nexo’s licensing journey with VARA follows a structured three-step pathway, starting with the IA phase as the foundational step before obtaining a fully operational license. The company’s proactive approach reflects a broader trend among crypto and blockchain firms seeking full licensure from VARA. Established in 2022, VARA has been instrumental in shaping regulations governing virtual assets in the region, with formal regulations published on Feb. 7, 2023.