Nexo, a cryptocurrency lending platform, is seeking to overcome its challenges in Bulgaria and the United States with the approval of its Dubai entity by the Virtual Assets Regulatory Authority (VARA) in the emirate. The initial approval granted to Nexo Services FZE includes virtual asset lending and borrowing, management and investment, and broker-dealer services. The company must now progress through the subsequent stages of obtaining a preparatory license and a final operating license in order to fully offer these crypto services to clients in the region through its mobile and web platforms. Kalin Metodiev, co-founder and managing partner at Nexo, sees this initial approval as a significant step towards the company’s global expansion, which has led to it acquiring seven million clients worldwide. Nexo’s move to the United Arab Emirates comes after its involvement in the US, which resulted in the wind-down of its Earn Interest offering and a $45 million penalty payment to regulatory authorities. In addition, Nexo faced issues in Bulgaria, where it filed a $3 billion damages claim after authorities withdrew charges related to its alleged involvement in a crypto lending scheme. However, the UAE, with its regulatory clarity and compliance framework, has become an attractive destination for global players in the cryptocurrency industry. OKX, a crypto exchange, also received a VARA license for exchange services in Dubai earlier this year, although the license is not yet operational as the platform works towards meeting all regulatory requirements.
Nexo leaves recent troubles in the past as it obtains license approval in the Middle East.