HashKey Secures Virtual Asset Provider License from Dubai VARA

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HashKey Group, a prominent financial services company specializing in digital assets across Asia, has been granted preliminary approval by the Dubai Virtual Assets Regulatory Authority (VARA) for their Virtual Asset Service Provider (VASP) license application. In other words, their subsidiary, HashKey MENA FZE, is one step closer to officially providing virtual asset services in Dubai.

Reaching this regulatory milestone cements HashKey’s reputation as a reliable player in the digital asset sector, paving the way for offering secure and transparent global services.

HashKey to Expand Regulated Services in the Middle East

After obtaining final approval, HashKey MENA FZE will be permitted under the VASP license to offer virtual asset exchange and broker-dealer services in and from Dubai. This will cater to retail, professional, and institutional investors, thereby enhancing HashKey Group’s international regulatory structure.

The given regulatory approval strengthens HashKey Group’s reputation as a reliable pioneer in the digital assets sector, allowing them to offer secure and transparent solutions worldwide.

For HashKey OTC, the branch of the group handling over-the-counter trades, this growth is especially important as it expands its regulated services in the Middle East. This action underscores HashKey’s dedication to prioritizing compliance, aiming to create a secure and streamlined digital asset trading experience.

HashKey Group currently possesses licenses in Hong Kong, Singapore, Japan, and Bermuda, and it’s also registered as a Virtual Asset Service Provider (VASP) in Ireland. Moreover, the company is actively working towards obtaining a Markets in Crypto-Assets (MiCA) license within Europe, thereby strengthening its regulatory standing worldwide.

Due to its forward-thinking approach towards cryptocurrency, the UAE has become an alluring choice for crypto companies. As per BeInCrypto’s reports, it has just rolled out a new tax break policy to stimulate growth within the sector. This policy is designed to establish the UAE as a worldwide leader in digital assets, enticing more companies such as HashKey to set up their operations in this region.

In 2024, Dubai stands out as a leading global crypto hub, with Switzerland and South Korea trailing behind. This status is attributed to its forward-thinking regulatory climate and attractive tax benefits, which have sparked considerable attention from prominent figures in the digital currency sector.

VARA’s New Legal Framework and Its Implications

In a move to align with its advertising regulations, Dubai’s Virtual Assets Regulatory Authority (VARA) has tightened the legal landscape for cryptocurrencies. Now, any marketing related to cryptos aimed at the UAE can only be executed by Virtual Asset Service Providers (VASPs) who are officially licensed by VARA. Failing to comply with these rules may lead to hefty fines reaching up to AED 10 million (around EUR 2.5 million) per offense.

Although the new regulations are designed to boost transparency and safeguard consumers, they’ve led at least seven cryptocurrency businesses to depart from Dubai. Yet, journalists are not subject to VARA’s guidelines under certain circumstances.

Marketing actions carried out outside of the UAE are not subject to these rules, except for those originating from Dubai. If activities originate from Dubai, the involved entities must adhere to both UAE and international legal standards. The Variable Advertising Regulatory Agency (VARA) works with other jurisdictions to handle any violations in this case.

In the meantime, HashKey’s recent success underscores the growing harmony between innovative cryptocurrency companies and forward-thinking regulatory structures such as VARA’s. Dubai is preparing for a significant increase in the use of cryptocurrencies, and obtaining the VASP license will enhance HashKey’s services. Furthermore, this licensing supports Dubai’s ambition to establish itself as a premier global hub for cryptocurrencies.

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2025-01-13 14:16