Mar 06, 2024 12:25
Nexo's entity based in Dubai, Nexo Services FZE, has secured the initialapproval from Dubai's Virtual Assets Regulatory Authority (VARA) to offerlending, borrowing, investment, and broker-dealer services for virtual assets.This marks the digital asset platform's entry into Dubai's crypto space.
Kalin Metodiev, the Co-Founder and Managing Partnerat Nexo, mentioned: "Nexo is enthusiastic about the pursuit of new marketstrategies aligned with the transformative guidance of Dubai's Virtual AssetRegulatory Authority."
Nexo's Global Expansion
Dubai established the VARA in 2022, highlighting theregion's commitment to becoming a global hub for digital asset innovation. ForNexo, with its user base of 7 million, Dubai represents a significantopportunity in its global expansion plans.
VARA regulates virtual assets across the Emirate of Dubai, including Special Development Zones and Free Zones, but excluding the Dubai International Financial Centre. This entity plays an important role in creating legal frameworks for protecting investors and establishing international standards for the virtual asset industry.
Nexos Dubai entity, Nexo DWTC, has been awarded an Initial Approval from Dubais Virtual Assets Regulatory Authority (VARA) for a vast range of virtual asset service activities. Dubais forward-looking culture of innovation is a natural fit for our goal in contributing to pic.twitter.com/H5dPjzXru2
Nexo (@Nexo)
March 5, 2024Recently, Nexo launched a legal offensive against the Republic of Bulgaria, filing an arbitration claim exceeding $3billion. The claim stems from what Nexo termed unjust and politicallymotivated interferences by Bulgarian authorities, disrupting crucial deals andcausing significant financial harm.
Nexo's pursuit of justice followed the dismissal of criminal charges against its leadership, including Kosta Kantchev,Antoni Trenchev, Kalin Metodiev, and Trayan Nikolov. The company's collaborations with investment banksfor a funding round and an IPO valued at $8-$12 billion were disrupted. Moreover,a strategic partnership with a major European football club was abruptlyhalted.
Defying Regulatory Hurdles
Last year, Nexo was forced to cease certain services for itsusers in the UK. The company made this decision due to the mandate of theFinancial Conduct Authority (FCA). These regulations compelled Nexo to phaseout cashback payouts and referral programs.
As part of the compliance measures, Nexo discontinuedcashback payouts for transactions on its exchange and Nexo Card. Besides that,the firm ended its referral and affiliate programs.
Nexo's actions reflected a response to theFCA's regulatory mandates by the broader industry. Notably, other financial firms, including PayPal,Luno, and Bybit, have adjusted their services in the UK. For instance,PayPal temporarily suspended cryptocurrency sales to its users in the UK for at leastthree months, starting October 1 last year.
This article was written by Jared Kirui at www.financemagnates.com.
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