Exclusive: Hex Trust Secures Additional VASP License from Dubai’s VARA
Hex Trust Group (HT), a prominent provider of digital asset solutions for institutional finance, protocols, foundations, and the Web3 ecosystem, recently obtained an additional Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA) on June 5.
In an exclusive discussion with Hex Trust, the company disclosed the details of the new license, their successful navigation of Dubai’s crypto regulations, and the upcoming enhancements to their services.
Established in 2018, the digital asset custodian noted that the extension of this new license to their VA Broker-Dealer and VA Management and Investment arm, HT Markets MENA FZE, signifies a significant expansion in Hex Trust’s service offerings and geographical reach.
Enhancing Digital Asset Services with Hex Trust’s Solidified License
The United Arab Emirates (UAE), particularly Dubai, has emerged as a key global hub for the cryptocurrency industry due to its strong regulatory framework and supportive environment for Virtual Asset Service Providers (VASPs). The UAE provides strategic advantages such as favorable positioning, tax benefits, investor-friendly policies, and advanced technological infrastructure, making it an appealing destination for crypto businesses.
Hex Trust’s journey in Dubai began with the issuance of their full VASP License in November 2023, allowing them to offer Virtual Asset Custodial Services to institutional clients and select investors. This foundational license demonstrated Hex Trust’s dedication to regulatory compliance and paved the way for future expansions.
The newly acquired license enables Hex Trust to provide a comprehensive range of virtual asset services, including broker-dealer functions, management and investment services, and regulated staking services. Filippo Buzzi, Hex Trust’s Regional Director for MENA, highlighted the advantages offered by HT Markets MENA FZE’s Broker-Dealer and VA Management and Investment licenses, particularly for institutional investors in the MENA region.
Expanding Virtual Asset Services with DeFi Access and Regulated Staking
With the additional license, Hex Trust Markets can now offer secure access to the decentralized finance (DeFi) ecosystem. Clients can utilize native on-chain staking solutions to generate yield and engage in trades with the support of Hex Trust’s dedicated Markets team.
Hex Trust’s global trading team provides round-the-clock client support, ensuring continuous trading coverage. Their offerings include tailored over-the-counter (OTC) trading solutions designed to optimize pricing, time horizons, and market impact through proprietary execution algorithms, deep liquidity, and broad access within virtual asset markets.
Furthermore, Hex Trust offers risk management solutions for corporate treasury requirements and facilitates seamless fiat on-ramp/off-ramp services for efficient conversion between fiat currencies and virtual assets.
Alessio Quaglini, Co-Founder and CEO of Hex Trust, emphasized the company’s commitment to compliance and regulation, underscoring their reputation as a trusted partner for both crypto-native and traditional financial institutions.
In a statement to Cryptonews, Buzzi acknowledged VARA, the world’s first independent regulator for virtual assets, for supporting Hex Trust’s strategic positioning in Dubai. VARA’s regulatory process, which includes consultations, roundtables, and workshops with license applicants, has played a vital role in establishing Dubai as a regional and international hub for virtual assets.
Quaglini reiterated Hex Trust’s dedication to advancing regulatory and compliance efforts to incorporate the latest developments into their product suite, offering innovative services and financing solutions to enable clients to capitalize on digital assets held in custody.
Dubai’s Crypto Regulation Positions It as a Global Virtual Asset Hub
At the Paris Blockchain Week panel in April, Matthew White, CEO of VARA, emphasized the importance of easing regulatory burdens for smaller crypto entities. He highlighted the high compliance costs and suggested that larger market participants could support smaller ones to share these obligations.
The UAE reported $25 billion in crypto transactions in 2022, attributing this success to its favorable regulatory environment. The Dubai Multi Commodities Centre (DMCC) highlighted the market potential of Web3 applications, including cryptocurrencies, DeFi, and the metaverse, emphasizing the importance of regulatory frameworks that balance innovation with consumer protection and fraud prevention.
As the crypto market stabilizes and shows renewed interest, Dubai’s regulatory approach will play a crucial role in shaping the future growth of these markets. Hex Trust’s continued commitment to regulatory compliance positions them as a reliable partner for both traditional finance institutions and crypto-native entities.
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