VARA Approves HashKey for Virtual Asset Services in Dubai
HashKey Group, Asia’s leading digital asset financial services group, announced that its subsidiary HashKey MENA FZE’s virtual asset service provider (VASP) has received an in-principle approval (IPA) license application from Dubai’s Virtual Asset Regulatory Authority (VARA).
This regulatory milestone confirms HashKey’s role as a trusted name in the virtual asset industry, opening the door to secure, transparent global services.
HashKey to expand regulatory services in Middle East
Once final approval is obtained, HashKey MENA FZE will be authorized to provide virtual asset trading and broker-dealer services within and outside Dubai with a VASP license. These services will be available to retail, accredited and institutional investors, further strengthening HashKey Group’s global regulatory framework.
“This regulatory approval solidifies HashKey Group’s position as a trusted leader in the virtual asset industry, enabling HashKey to provide secure, transparent services globally,” excerpt from the announcement read.
The development is particularly significant for the group’s over-the-counter trading arm, HashKey OTC, which is expanding its regulated offerings in the Middle East. This move highlights HashKey’s commitment to compliance first and providing a safe and efficient environment for digital asset transactions.
HashKey Group holds licenses in Hong Kong, Singapore, Japan and Bermuda, and is VASP registered in Ireland. In addition, the company is actively seeking Crypto Asset Market (MiCA) Obtained European license to further consolidate its global regulatory position.
The UAE’s progressive stance on cryptocurrencies makes it an attractive destination for cryptocurrency companies. According to BeInCrypto, it recently launched a new Tax exemption policy to promote growth in the industry. The policy aims to position the UAE as a global digital asset hub and encourage more companies like HashKey to operate in the region.
Dubai, in particular, has emerged as a top cryptocurrency hub, Ranked No. 1 globally in 2024followed by Switzerland and South Korea. The emirate’s positive regulatory environment and tax incentives have attracted interest from major players in the digital asset space.
VARA’s new legal framework and its implications
Despite its crypto-friendly reputation, Dubai’s VARA recently introduced strict legal changes to ensure full compliance with its marketing regulations. These regulations Requires that all cryptocurrency-related marketing to the UAE must be conducted only by VARA-licensed VASPs. Failure to comply can result in severe penalties, including fines of up to AED 10 million (€2.5 million) per violation.
While these regulations are intended to promote transparency and consumer protection, they Prompted at least seven cryptocurrency entities to leave Dubai. However, journalists are exempt from VARA rules if they meet certain conditions.
Marketing activities conducted outside the UAE are not subject to these regulations unless they originate in Dubai. In such cases, these entities must comply with UAE and international laws, and VARA works with other jurisdictions to resolve non-compliance.
At the same time, HashKey’s latest achievement highlights the growing alignment between leading cryptocurrency companies and progressive regulatory frameworks such as VARA. Dubai is gearing up for the global cryptocurrency boom and the VASP license will strengthen HashKey’s offerings. Additionally, it supports Dubai’s goal of becoming a world-class cryptocurrency hub.
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