Hong Kong-based institutional cryptocurrency asset custodian Hex Trust has secured approval from Dubai's Virtual Asset Regulatory Authority (VARA) to offer virtual asset custody services to institutional clients and investors in the region. Having established an office in the city back in June 2022, Hex Trust received a full Virtual Asset Service Provider (VASP) license on November 15, marking a significant milestone. Initially granted a minimum viable product (MVP) license in February 2023, the company has now obtained clearance to deliver its services within Dubai's jurisdiction.
Filippo Buzzi, Hex Trust's regional director for the Middle East and North Africa, highlighted the importance of this approval, noting that it positions Hex Trust among a select group of licensed cryptocurrency exchanges and service providers operating in Dubai. Buzzi expressed the company's commitment to the region, citing the favorable regulatory environment, supportive governance, and the burgeoning crypto ecosystem in the Middle East as drivers for digital asset growth.
Alessio Quaglini, Hex Trust's co-founder and CEO, emphasized Dubai's conducive environment for businesses in the crypto sector, characterizing the emirate as an ideal destination to grow and leverage the region's forward-thinking regulatory approach. Beyond Dubai, Hex Trust has also received approval in France in August 2023 to extend its services to businesses within the country. The company boasts a global presence with offices in Hong Kong, Singapore, Vietnam, Dubai, Italy, and France.
MetaMask Institutional, a leading wallet and browser extension, recently integrated Hex Trust as one of the four major cryptocurrency custodians into its platform. This integration enables Hex Trust to provide custody services tailored for institutional clients. Hex Trust's announcement of the VASP license aligns with the recent approval granted to Crypto.com's Dubai entity by the city's regulatory authority, although the latter's operational approval is still pending.
Several notable cryptocurrency exchanges, including Binance, Bybit, OKX, and others, have previously secured MVP or VASP licenses. Komainu, a collaborative effort between Nomura, CoinShares, and Ledger, also received a full VASP license in August 2023. The company specializes in custody offering and staking services to institutional-level clients. The United Arab Emirates continues to attract participants from the cryptocurrency ecosystem due to its supportive regulations and incentives, making the process of obtaining a VARA license in Dubai a three-step progression involving provisional approval, MVP licensing, and ultimately, a full market product license.
