Hex Trust Gains Dubai’s Approval to Provide Cryptocurrency Custodial Services
Summary:
Hong Kong-based cryptocurrency asset custodian Hex Trust has received a virtual asset service provider (VASP) license from Dubai's Virtual Asset Regulatory Authority (VARA), enabling it to offer custodial services to institutional clients in the city. Hex Trust, which obtained a minimal viable product license earlier, has been steadily expanding its locations, now present in Dubai, Hong Kong, Singapore, Vietnam, Italy, and France. The firm is among a few cryptocurrency exchanges with operational approval in Dubai, following a three-step licensing process. Dubai's progressive regulatory approach continues to attract crypto firms, underlining its growing significance in the crypto ecosystem.
Cryptocurrency asset custodian Hex Trust, originating from Hong Kong, has received approval to provide virtual asset custodial services to institutional clients and investors in Dubai. The company, which opened an office in the city in June 2022, was granted a complete virtual asset service provider (VASP) license from Dubai's Virtual Asset Regulatory Authority (VARA) on Nov. 15. Initially, the company acquired a minimal viable product (MVP) operations license in Feb. 2023, and now can freely offer its services within the jurisdiction.
The company's Regional Director of MENA, Filippo Buzzi, says the approval positions Hex Trust among a small but expanding group of crypto exchanges and service providers authorized to operate in Dubai. He stated, “Hex Trust is seriously committed to its expansion into the Middle East, recognizing the substantial potential for crypto asset growth due to progressive regulations, supportive governments, and a prospering crypto ecosystem within the region.”
Hex Trust’s CEO and co-founder, Alessio Quaglini, further added that Dubai presents an excellent opportunity for businesses in the sector to grow thanks to the forward-thinking regulatory approach of the region. Earlier in Aug. 2023, France also recognized the company, giving regulatory approval for it to extend its services to French companies. Hex Trust maintains offices in multiple locations, including Hong Kong, Singapore, Vietnam, Dubai, Italy, and France. Recently, MetaMask Institutional announced that Hex Trust was among four key crypto custodians incorporated into its wallet and browser extension, providing custodial services to institutional clients.
This announcement from Hex Trust about its VASP license came a day after crypto exchange Crypto.com's Dubai branch was given its VASP license, pending operational approval. Other significant crypto exchanges that managed to secure MVP or VASP licenses in the past include Binance, Bybit, Laser Digital Middle East, BitOasis (suspended), OKX, Crypto.com, FTX (revoked) and Huobi.
Komainu, a collaborative venture between Nomura and crypto companies CoinShares and Ledger, is among the latest crypto firms to obtain a full VASP license as recently as Aug. 2023. The firm provides institutional-grade clients with custodial and staking services. The favorable regulatory environment and provision of federal grants make the United Arab Emirates an appealing destination for participants in the cryptocurrency ecosystem. In Dubai, securing a VARA license is a three-step procedure involving achieving provisional approval, then gaining an MVP license, followed by a full market product license.
Published At
11/15/2023 8:30:26 AM
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