Hex Trust, a leading provider of digital asset solutions, has secured an additional Virtual Asset Service Provider (VASP) license from Dubai's Virtual Asset Regulatory Authority (VARA). This new license, extending to its VA Broker-Dealer and VA Management and Investment arm, HT Markets MENA FZE, marks a significant milestone in Hex Trust's journey to enhance its service capabilities and geographic reach in the Middle East and North Africa (MENA) region.

Navigating Dubai's Crypto Regulation

The United Arab Emirates (UAE), particularly Dubai, has emerged as a global hub for the cryptocurrency industry, thanks to its robust regulatory framework and supportive environment for Virtual Asset Service Providers (VASPs). Dubai's strategic positioning, tax benefits, investor-friendly atmosphere, and advanced technological infrastructure have made it an attractive destination for crypto businesses seeking to leverage the region's progressive regulatory stance towards digital finance.

Hex Trust's Journey in Dubai

Hex Trust's journey in Dubai began with the issuance of its full VASP License in November 2023, authorizing the company to provide Virtual Asset Custodial Services to institutional clients and some investors. This foundational license established Hex Trust's commitment to regulatory compliance and set the stage for further expansion.

Enhancing Digital Asset Services

The newly acquired license enhances Hex Trust's ability to offer comprehensive virtual asset services, including broker-dealer functions, management and investment services, and regulated staking services. Filippo Buzzi, Hex Trust's Regional Director, MENA, emphasized the significance of this license, stating, "The approval of this additional VASP license demonstrates Hex Trust's commitment to fostering crypto ecosystem innovation and enabling safe market access in the Middle East."

Institutional Investors' Confidence

HT Markets MENA FZE's Broker-Dealer and VA Management and Investment licenses offer significant advantages to institutional investors in the MENA region. Buzzi explained, "Institutional investors value adherence to regulations. With HT Markets MENA FZE being a licensed VASP, it signals a commitment to regulatory standards, ensuring trust and confidence among institutional clients."

Expanding Services and Offerings

With the new license, Hex Trust Markets can provide safe access to the decentralized finance (DeFi) ecosystem, allowing clients to generate yield through native on-chain staking solutions and execute trades with the support of Hex Trust's dedicated Markets team. The firm's global trading team offers 24/7 client support, ensuring continuous trading coverage, and provides risk management solutions for corporate treasury needs and seamless fiat on-ramp/off-ramp services.

Commitment to Compliance and Innovation

Alessio Quaglini, Co-Founder and CEO of Hex Trust, emphasized the company's commitment to compliance and regulation, stating, "Hex Trust's commitment to compliance and regulation has always been a priority, and this has earned us a reputable standing as a reliable partner for both crypto-native and traditional finance institutions."

Quaglini further commented that VARA's regulatory process, which includes consultations with license applicants, roundtables, and multiple workshops, has been instrumental in positioning Dubai as a regional and international hub for virtual assets. He added, "Our mission at Hex Trust is to stay ahead of the curve in terms of licensing and compliance, ensuring we provide 24/7 regulated digital asset services to our 200+ global institutional clients."

Dubai's Crypto Regulation and Market Potential

Dubai's crypto regulation has positioned it as a global virtual asset hub, attracting significant investment and facilitating the growth and scaling of organizations. The UAE reported $25 billion in crypto transactions in 2022, and the Dubai Multi Commodities Centre (DMCC) highlighted the market potential of Web3 applications, including cryptocurrencies, decentralized finance (DeFi), and the metaverse.

As the crypto market stabilizes and interest renews, the future growth of these markets depends on the regulatory approaches of governing bodies. Dubai's VARA emphasizes the need to balance innovation with consumer protection and fraud mitigation, creating an environment conducive to the development and adoption of digital assets.