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Hex Trust, a Hong Kong-based crypto custodian, is the latest crypto company to get temporary approval from the Dubai government to conduct business in the region. According to a statement released Monday, Hex Trust is getting a Virtual Asset MVP License from the Virtual Assets Regulatory Authority (VARA) to provide a range of services to institutional clients and sophisticated investors.

Virtual Asset Regulation

VARA, established in March this year, is in charge of virtual asset regulation through a licensing system. The regulator is also crafting regional strategic plans and policies for digital assets, as well as regulating, supervising, and establishing KYC/AML laws. In May, it became the first regulator in the world to establish a presence in the metaverse to boost stakeholder accessibility. The custodian said it would create an office in Dubai to serve as a regional headquarters in the Middle East now that it has received provisional approval. The move comes after the custodian’s latest and first large fundraising in March when it raised $88 million in a Series B funding round to expand its operations to the Middle East and Europe.

Crypto Firms Rushing to Dubai

Following Dubai’s ruler, Mohammed bin Rashid Al Maktoum, enacting the “Regulation of Virtual Assets in the Emirate of Dubai” in February, crypto businesses have continued to rush to the significant Arab emirate. The regulation, also known as the Virtual Asset Law, aims to provide precise principles and definitions for digital assets, including NFTs.FTX, Binance, Crypto.com, Bybit, and Kraken are among the leading cryptocurrency exchanges that have lately opened regional headquarters and gained licenses.

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