Hex Trust, an institutional cryptocurrency asset custodian headquartered in Hong Kong, has received authorization to provide custodial services for virtual assets on behalf of institutional clients and investors in Dubai.
On November 15, Dubai’s Virtual Asset Regulatory Authority (VARA) granted the company a complete virtual asset service provider (VASP) license.
The company had established an office in the city in June 2022.
Since obtaining a minimal viable product (MVP) operations license in February 2023, the organization is now authorized to provide its services within the specified jurisdiction.
Hex Trust’s Regional Director of MENA, Filippo Buzzi, notes that the approval sees the company join a growing but limited list of cryptocurrency exchanges and cryptocurrency service providers to be given the all-clear to operate in Dubai:
“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.”
Alessio Quaglini, co-founder and CEO of Hex Trust, further asserts that the Emirate of Dubai offers a favorable prospect for enterprises operating in the sector to expand and take advantage of the region’s progressive regulatory framework.
Moreover, France bestowed regulatory authorization upon the organization to provide its services to domestic businesses in August 2023.
Hex Trust offices represent France, Hong Kong, Singapore, Vietnam, Dubai, and Italy.
Recently, MetaMask Institutional disclosed that Hex Trust was incorporated into its wallet and browser extension as one of four prominent cryptocurrency custodians, enabling it to offer custodial services to institutional clients.
The announcement of Hex Trust’s VASP license comes one day after the Dubai branch of cryptocurrency exchange Crypto.com received its VASP license from the city’s regulator; operational certification is still pending.
Additionally, notable cryptocurrency exchanges that have obtained MVP or VASP licenses in the past include Huobi, Binance, Bybit, Laser Digital Middle East, BitOasis (which has been suspended), OKX, Crypto.com, and FTX (which has had its license revoked).
As of August 2023, Komainu, a joint venture between Nomura and crypto firms CoinShares and Ledger, is among the most recent crypto firms to obtain a complete VASP license.
Institutional grade clientele can obtain custodial and staking services from the organization.
The United Arab Emirates remains a magnet for participants in the cryptocurrency ecosystem because of its favorable regulatory environment and federal funding for cryptocurrencies.
Furthermore, attaining a VARA license in Dubai requires crypto exchanges to qualify for provisional approval, a minimal viable product (MVP) license, and a full market product license.