HashKey Group, a leading digital asset financial services group in Asia, announced that its subsidiary, HashKey MENA FZE, has received an In-Principle Approval (IPA) from the Dubai Virtual Assets Regulatory Authority (VARA) for its Virtual Asset Service Provider (VASP) license application.
This regulatory milestone confirms HashKey’s role as a trusted name in the virtual asset industry, opening the door to secure and transparent global services.
HashKey to Expand Regulated Services in the Middle East
Once it receives final approval, HashKey MENA FZE will be authorized under the VASP license to provide virtual asset exchange and broker-dealer services in and from Dubai. These services will be available to retail, qualified, and institutional investors, further strengthening HashKey Group’s global regulatory framework.
“This regulatory approval reinforces HashKey Group’s position as a trusted leader in the virtual asset industry, enabling HashKey to deliver secure and transparent services globally,” an excerpt in the announcement read.
This development is particularly significant for HashKey OTC, the Group’s over-the-counter trading arm, which is expanding its regulated offerings in the Middle East. The move highlights HashKey’s commitment to a compliance-first approach, providing a secure and efficient environment for digital asset trading.
HashKey Group already holds licenses in Hong Kong, Singapore, Japan, and Bermuda and has a VASP registration in Ireland. Additionally, the company is actively pursuing a Markets in Crypto-Assets (MiCA) license in Europe, further solidifying its global regulatory presence.
The UAE’s progressive stance on cryptocurrency has made it an attractive destination for crypto firms. As BeInCrypto reported, it recently introduced a new tax exemption policy to boost the sector’s growth. This policy aims to position the UAE as a global hub for digital assets, encouraging more firms like HashKey to establish operations in the region.
Dubai, in particular, has emerged as a top crypto hub, ranking first globally in 2024, followed by Switzerland and South Korea. The emirate’s proactive regulatory environment and tax incentives have drawn a surge of 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 stringent legal changes to ensure full compliance with its marketing regulations. These regulations require that all crypto-related marketing targeting the UAE must be conducted solely by VASPs licensed by VARA. Non-compliance could result in severe penalties, including fines of up to AED 10 million (EUR 2.5 million) per violation.
While these regulations aim to enhance transparency and consumer protection, they have prompted at least seven crypto entities to leave Dubai. However, journalists are exempt from VARA’s rules if they meet specific conditions.
Marketing activities conducted outside the UAE are exempt from these regulations unless they originate from Dubai. In such cases, the entities must comply with both UAE and international laws, with VARA collaborating with other jurisdictions to address violations.
Meanwhile, HashKey’s latest achievement highlights the increasing alignment between leading crypto firms and progressive regulatory frameworks like VARA’s. Dubai is positioning itself for a global crypto boom, and the VASP license will strengthen HashKey’s offerings. Additionally, it supports Dubai’s goal of becoming a world-class crypto hub.
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