Hashkey’s unit, HashKey MENA has secured an in-Principle Approval (IPA) for its Virtual Asset Service Provider (VASP) license application from the Dubai Virtual Assets Regulatory Authority (VARA).
The new license comes as HashKey has been taking up expansion plans for quite some time now. The new development also comes against the backdrop of crypto growth in the UAE, especially Dubai.
What Will The New Approval Include?
According to the official announcement, with this regulatory clearance, the HashKey Group will be able to provide transparent and safe services all over the world, solidifying its position as a reliable leader in the virtual asset sector.
When the VASP license is finally approved, HashKey MENA will be able to provide retail, qualified, and institutional investors with virtual asset exchange and broker-dealer services within and outside of the Emirate of Dubai.
As the Group’s over-the-counter trading division, HashKey OTC, grows its regulated operations in the Middle East, this milestone also represents a major advancement.
By doing this, HashKey OTC demonstrates its dedication to a compliance-first strategy and provides investors with a safe and effective environment for trading digital assets.
HashKey Aims as Seeking MiCA License
According to the group’s official announcement, in addition to having a VASP registration in Ireland and licenses in Hong Kong, Singapore, Japan, and Bermuda, HashKey Group is aggressively seeking a MiCA license in Europe to bolster its regulatory presence on a worldwide scale.
Not long ago, the Central Bank of Ireland granted a Virtual Asset Service Provider (VASP) license to HashKey Europe, a branch of the Hong Kong-based HashKey Group, marking a major milestone in the company’s global expansion strategy.
The business’s operations clearly demonstrate its emphasis on compliance. The Central Bank of Ireland will oversee HashKey Europe in Ireland, particularly for the purposes of AML and CFT (countering the financing of terrorism).
HashKey’s New License Comes Amid Dubai’s Crypto Expansion
HashKey’s new license approval will be one step in tandem with Dubai’s crypto growth. Dubai and the entire MENA region have seen a skyrocketing growth in crypto adoption.
In the same tone, the UAE previously announced tax exemption for crypto firms. This ruling would change the UAE’s position in the blockchain and digital finance industries by exempting cryptocurrency transactions from value-added tax (VAT).
In contrast, as nations throughout the world struggle with how to tax and regulate cryptocurrencies, the UAE has a forward-thinking and business-friendly strategy.
Not only is this a local regulatory reform, but it has the potential to be a game-changer for the worldwide cryptocurrency market, which might lead to blockchain companies moving to the Middle East.