Nexo's Dubai entity, Nexo DWTC, has received initial approval from VARA to engage in virtual asset lending, borrowing and broker-dealer activities in Dubai, marking Nexo's entry into the city's burgeoning crypto market.

On Tuesday, Nexo announced its Dubai entity, Nexo DWTC, has received preliminary approval from the Dubai Virtual Asset Regulatory Authority (VARA) to engage in virtual asset lending, borrowing and broker-dealer activities in the UAE's most populous city.

Nexo Gets Preliminary VARA Approval for Dubai Crypto Operations

Crypto lender Nexo received a provisional “Preliminary Approval [IA]” nod from VARA, marking its entry into Dubai's burgeoning crypto market. Nexo explained that this IA paves the way for it to become one of the initial digital asset lending entities aiming to penetrate the burgeoning sector in Dubai.

Crypto bank Nexo received a provisional “Preliminary Approval [IA]” nod from VARA, marking its entry into Dubai's burgeoning crypto market. Nexo explained that this IA paves the way for it to become one of the initial digital asset lending entities aiming to penetrate the burgeoning sector in Dubai.

"From the UAE, a global leader in vision, governance and innovation, Nexo aims to contribute to the regional ecosystem through pioneering lending, brokerage, management and investment solutions," Kalin Metodiev, CFA, co-founder and managing partner at Nexo, said said in a statement. Metodiev added:

Nexo is enthusiastic about pursuing a new market strategy that aligns with transformative guidance from the Dubai Virtual Asset Regulatory Authority.

The licensing journey with VARA is a structured three-step pathway, starting with the IA phase as a foundational step before obtaining VARA approval to obtain a full operational license. Over the past year, several crypto and blockchain companies committed to obtaining full licensing from VARA.

VARA officially emerged in 2022, with regulations governing virtual assets in the area published by VARA on 7 February 2023. Nexo's announcement comes as Dubai, along with Abu Dhabi and the wider UAE, emerges as a growing hub for crypto companies that want to establish their presence.