Top Crypto Custodian Hex Trust Receives VARA Approval
Securing VARA’s Approval
Hex Trust, the Hong Kong-based cryptocurrency asset custody firm, has received approval from Dubai’s Virtual Asset Regulatory Authority (VARA) to provide comprehensive virtual asset custodial services to institutional clients and investors. The move is a significant step for the company toward strengthening its presence in the Middle East.
Hex Trust obtained a minimal viable product (MVP) operations license in February 2023 after establishing its office in the city in June 2022. However, the recent approval from VARA represents a turning point for the company, as it is now fully authorized to expand its range of services within the jurisdiction.
Filippo Buzzi, Hex Trust’s Regional Director for the Middle East and North Africa, expressed his delight that the company is now among the few crypto exchanges and service providers authorized to operate in Dubai. Buzzi added that the approval cements Hex Trust’s commitment to providing top-tier custodial services within this growing market.
The acquisition of the full VASP license by Hex Trust highlights the regulatory progress being made in the region, signaling increasing presence and regulation of virtual assets within the Emirates.
Aiming For Global Expansion
In his remarks, Alessio Quaglini, co-founder and CEO of Hex Trust, praised Dubai as an ideal environment for emerging businesses in the cryptocurrency sector, citing the region’s progressive regulatory stance as a catalyst for industry growth. This accomplishment aligns with Hex Trust’s extensive global outreach.
In August 2023, France welcomed the firm into its regulatory fold, allowing Hex Trust to offer its services to companies in the country. The firm’s footprint is extensive, with offices in France, Hong Kong, Singapore, Italy, Vietnam, and recently Dubai.
The announcement of Hex Trust’s full VASP license in Dubai coincides with the city’s regulator awarding a VASP license to Crypto.com’s Dubai subsidiary. Despite the regulatory approval, Crypto.com’s operational authorization is still pending.
Meanwhile, the firm also recently achieved another milestone when MetaMask Institutional announced the integration of Hex Trust and three other notable cryptocurrency custodians into its wallet and browser extension.
UAE’s Growing Reputation As A Crypto Hub
Due to its progressive regulatory framework, the United Arab Emirates (UAE) has become a hub for cryptocurrency exchanges and custodians, attracting industry heavyweights to its shores. Thus, several prominent players have obtained MVP or full VASP licenses to operate in the UAE.
Other crypto service providers that have a presence in this region include Binance, Bybit, Crypto.com, OKX, and Huobi. These exchanges are reported to have completed the three-step process outlined by Dubai’s regulatory body.
This procedure starts with provisional approval and MVP licensing and ends with the full market product license, indicating compliance with stringent regulatory standards.
Other Crypto Entities Also Have VARA Approvals
Besides crypto exchanges, other crypto entities operate in the UAE digital economy. Komainu, a joint venture between Nomura and crypto heavyweights CoinShares and Ledger, received a full VASP license in August 2023.
The increasing number of crypto entities in the UAE is a testament to the region’s crypto-friendly environment. It also proves the region’s commitment to becoming a global crypto hub soon.
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