Hex Trust Obtains Dubai’s Virtual Asset Service Provider License

Hex Trust, an institutional cryptocurrency asset custodian originating from Hong Kong, has secured approval to extend virtual asset custodial services to institutional clients and investors in Dubai. Acquiring a full virtual asset service provider (VASP) license from Dubais Virtual Asset Regulatory Authority (VARA) on November 15, the company, having initially obtained a minimal viable product (MVP) operations license in February 2023, is now poised to render its services within the jurisdiction.

Emphasizing the significance of this green light, Hex Trust MENA regional director Filippo Buzzi highlighted the company's entry into an exclusive league of cryptocurrency exchanges and service providers endorsed to function in Dubai. Buzzi expressed Hex Trust's unwavering commitment to the Middle East, recognizing the substantial potential for digital asset expansion owing to the region's forward-thinking regulations, favourable government approach, and burgeoning crypto ecosystem.

Alessio Quaglini, the CEO and co-founder of Hex Trust, underscored Dubai's status as an opportune landscape for sectoral businesses to thrive, leveraging the region's progressive regulatory stance. The company has been expanding its global footprint with offices in various locations including Hong Kong, Singapore, Vietnam, Dubai, Italy, and France, with the latter granting regulatory approval for its services to local entities in August 2023.

Hex Trust's recent authorization coincides closely with MetaMask Institutional's integration of four major cryptocurrency custodians into its wallet and browser extension, positioning Hex Trust to provide custodial services to institutional clients. This development follows closely after the regulatory green light granted to Crypto.com's Dubai entity for its VASP license, currently awaiting operational approval.

Several other notable cryptocurrency exchanges such as Binance, Bybit, OKX, FTX (recently revoked), and Huobi, among others, have previously received MVP or VASP licenses in Dubai. Komainu, a collaborative venture involving Nomura, CoinShares, and Ledger, also secured a full VASP license, offering custodial and staking services to institutional-grade clients.

The United Arab Emirates, bolstered by federal grants and crypto-friendly regulations, continues to entice participants within the cryptocurrency ecosystem. The VARA license acquisition in Dubai follows a structured three-step process involving provisional approval, an MVP license, and eventually a full market product license for crypto exchanges looking to operate in the region.