Nexo, a crypto-lending platform, aims to overcome recent challenges in Bulgaria and the United States by advancing its operations through its Dubai subsidiary, which received preliminary approval from the Virtual Assets Regulatory Authority (VARA) in the UAE. This initial approval allows Nexo Services FZE to offer a range of services including virtual asset lending and borrowing, management, investment, and broker-dealer services, according to an announcement made on March 5.

However, before fully launching these crypto services to regional clients across its platforms, Nexo must obtain a preparatory license and a final operating license. Kalin Metodiev, Nexo's co-founder and managing partner, views this as a significant stride in the company's global expansion efforts, which currently serve an impressive seven million clients worldwide.

Despite facing challenges in the United States, resulting in penalties of $45 million for failing to register a product, and encountering user issues in Bulgaria, Nexo is making progress in the UAE. With financial hubs like Abu Dhabi and Dubai, the country has been attracting global crypto firms due to its transparent regulatory framework and straightforward compliance processes.

Previously, OKX, a crypto exchange, also received a VASP license from VARA for its Dubai branch. While the license is not yet operational and is pending regulatory requirements, the platform is expected to activate its license soon.