Crypto Lender Nexo Obtains Initial Approval from Dubai VARA

UK-based crypto lender Nexo has announced that its Dubai entity, Nexo DWTC, has been granted an Initial Approval by the Dubai's Virtual Asset Regulatory Authority (VARA). This approval allows Nexo to potentially engage in virtual asset lending and borrowing, management and investment, as well as broker-dealer activities in the region.

Kalin Metodiev, CFA, Co-founder and Managing Partner at Nexo, said: "From the UAE, the global leader for vision, governance, and innovation, Nexo aims to contribute to the regional ecosystem through pioneering lending, brokerage, management, and investment solutions. Nexo is enthusiastic about the pursuit of new market strategies aligned with the transformative guidance of Dubai's Virtual Asset Regulatory Authority."

Dubai has been at the forefront of blockchain strategies, launching them early on and establishing VARA as a regulatory agency in 2022, which further solidifies its position as a global center for digital asset innovation. For crypto firms like Nexo, this market is seen as pivotal.

However, Nexo has faced challenges in recent years. In early 2021, Bulgarian prosecutors initiated an investigation​ into alleged illegal activities, including money laundering and unlicensed banking, by Nexo. Additionally, by the end of 2022, Nexo decided to exit the US market due to conflicts with regulators in that country.