Nexo Wins Initial Approval for Licensed Entity Status in Dubai

According to CoinDesk, Nexo, a digital asset services company, has received initial approval as a licensed entity in Dubai from the region's Virtual Assets Regulatory Authority (VARA). Nexo's regional entity, Nexo DTC, is seeking full approval for Lending & Borrowing, Management & Investment, and Broker-Dealer activities. Obtaining a full license involves three stages: an initial provisional permit, a preparatory license, and an operating license. Dubai, the most populous city in the UAE, along with the nation's capital, Abu Dhabi, has been working to attract financial institutions as it aims to become a global crypto hub. Although VARA's public record register does not yet show Nexo DTC having won initial approval, the register is typically updated within a few days of such developments. Kalin Metodiev, co-founder and managing partner at Nexo, expressed enthusiasm about pursuing new market strategies in line with the guidance of Dubai's Virtual Asset Regulatory Authority. Previously, Nexo agreed to pay $45 million to the SEC for failing to register the offer and sale of its Earn Interest Product (EIP) but has also sought $3 billion in damages from Bulgaria for bringing it disrepute after the nation's investigation found no evidence against the company.