Nexo Services FZE, based in Dubai, has received preliminary approval from Dubai’s Virtual Assets Regulatory Authority (VARA) to provide lending, borrowing, investment, and broker-dealer services for virtual assets. This signifies Nexo’s entry into Dubai’s digital asset arena.
Kalin Metodiev, Co-Founder and Managing Partner at Nexo, expressed enthusiasm, stating, “Nexo is enthusiastic about the pursuit of new market strategies aligned with the transformative guidance of Dubai’s Virtual Asset Regulatory Authority.”
Dubai’s establishment of VARA in 2022 underscores the region’s commitment to becoming a global center for digital asset innovation.
With a user base of 7 million, Dubai presents a significant opportunity for Nexo in its global expansion endeavors.
VARA’s jurisdiction covers virtual assets throughout the Emirate of Dubai, including Special Development Zones and Free Zones, with the exclusion of the Dubai International Financial Centre.
The authority plays a crucial role in developing legal frameworks to safeguard investors and establish international standards for the virtual asset industry.
Nexo recently initiated legal action against the Republic of Bulgaria, filing an arbitration claim exceeding $3 billion.
The claim arises from what Nexo describes as unjust and politically motivated interferences by Bulgarian authorities, leading to disrupted deals and substantial financial losses.
This pursuit of justice follows the dismissal of criminal charges against Nexo’s leadership, including Kosta Kantchev, Antoni Trenchev, Kalin Metodiev, and Trayan Nikolov.
The company’s plans for a funding round and an IPO valued at $8-$12 billion, along with a strategic partnership with a major European football club, were adversely affected.
Last year, Nexo had to discontinue certain services for its UK users due to mandates from the Financial Conduct Authority (FCA).
Compliance measures led to the phasing out of cashback payouts and referral programs.
In response to the FCA’s regulations, Nexo ceased cashback payouts for transactions on its exchange and Nexo Card, along with ending its referral and affiliate programs.
This aligns with actions taken by other financial firms like PayPal, Luno, and Bybit, which adjusted their services in the UK.
For example, PayPal temporarily halted cryptocurrency sales to UK users for at least three months starting October 1 last year.