Hong Kong-based institutional cryptocurrency asset custodian, Hex Trust, has received approval to offer virtual asset custodial services to institutional clients and investors in Dubai.
The company, which established its Dubai office in June 2022, obtained a full virtual asset service provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA) on November 15.
Initially, Hex Trust had received a minimal viable product (MVP) operations license in February 2023, and this recent approval allows the firm to fully operate in the jurisdiction.
Hex Trust’s MENA regional director, Filippo Buzzi, highlighted that this approval places the company among a select group of cryptocurrency exchanges and service providers allowed to operate in Dubai.
Buzzi expressed Hex Trust’s commitment to expanding into the Middle East, citing the region’s progressive regulations, supportive governments, and thriving crypto ecosystem as factors contributing to its growth potential.
Alessio Quaglini, Hex Trust’s co-founder and CEO, emphasized that Dubai offers an ideal environment for businesses in the cryptocurrency sector to thrive, thanks to its progressive regulatory approach.
In addition to Dubai, Hex Trust has also received regulatory approval in France to provide its services to companies in the country, marking another milestone in its global expansion.
The company currently has offices in Hong Kong, Singapore, Vietnam, Dubai, Italy, and France.
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Furthermore, Hex Trust recently gained recognition as one of the four major cryptocurrency custodians integrated into MetaMask Institutional’s wallet and browser extension, enabling it to offer custodial services to institutional clients.
This announcement coincided with Crypto.com’s Dubai entity receiving its VASP license, which is still pending operational approval from the city’s regulator.
Hex Trust joins a list of prominent cryptocurrency exchanges and firms that have obtained MVP or VASP licenses in Dubai, including Binance, Bybit, Laser Digital Middle East, BitOasis (currently suspended), OKX, Crypto.com, FTX (license revoked), and Huobi.
Komainu, a joint venture involving Nomura, and crypto companies CoinShares and Ledger, also secured a full VASP license in August 2023, offering custodial and staking services to institutional-grade clients.
The United Arab Emirates’ continued attraction to cryptocurrency ecosystem participants is driven by its role in providing federal grants and fostering crypto-friendly regulations.
To obtain a VARA license in Dubai, crypto exchanges must go through a three-step process, which includes qualifying for provisional approval, obtaining an MVP license, and finally securing a full market product license.
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