Hong Kong’s digital asset powerhouse, HashKey Group, received the preliminary go-ahead from Dubai’s Virtual Assets Regulatory Authority (VARA) to operate in the region.
Strategic Expansion into Dubai
The preliminary approval positions HashKey to provide Virtual Asset Exchange Services and Virtual Asset Broker-Dealer Services to a diverse range of investors in Dubai, including retail, qualified, and institutional clients. This development particularly strengthens HashKey OTC, the group’s over-the-counter trading arm, which will now have expanded regulated activities across the Middle East.
If well organized, HashKey’s presence in Dubai could reap the benefits of the UAE’s recent regulatory alignment initiatives. In September 2024, the UAE’s Securities and Commodities Authority (SCA) and VARA jointly announced a new supervisory framework to achieve consistency in laws across the UAE. This arrangement allows firms with VARA licenses to automatically receive SCA registration, enabling them to service the wider UAE market.
HashKey Looks to Build a Global Regulatory Framework
Just days before the Dubai announcement, the company secured VASP registration approval from the Central Bank of Ireland. The group already has licenses in key markets, including Hong Kong, Singapore, Japan, and Bermuda. This plan to expand into the UAE aligns with the country’s vision of becoming a global hub for blockchain innovation. Under the UAE’s regulatory framework, all companies are expected to meet strict compliance standards, including the Anti-Money Laundering (AML) and KYC procedures.
Furthermore, the company’s growth trajectory has shown brilliance in nearly every ramification, from expansion to fiscal achievements. In early 2024, HashKey completed a Series A financing round of almost $100 million, achieving a pre-money valuation exceeding $1.2 billion. Their HashKey Global platform, launched in 2024, quickly achieved profitability within two months and reached the top 10 of CoinGecko’s global exchange rankings.
In conclusion, Dubai’s crypto landscape has become increasingly attractive for international players, with VARA having licensed 19 crypto exchanges and brokers. The regulatory framework established by VARA aims to maintain Dubai’s competitive position in the digital economy while protecting investors through robust oversight.
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