HashKey Group, a Hong Kong-based crypto company, has secured a virtual asset license from regulatory authorities in Dubai, allowing the company to offer crypto brokerage services in the UAE. HashKey Global MENA (Middle East and North Africa) will handle the new operations.
The Dubai Virtual Assets Regulatory Authority (VARA) has approved a Virtual Asset Service Provider (VASP) license for HashKey. The crypto company plans to provide services for institutional clients using USD and AED currencies, such as fiat deposits and withdrawals. HashKey will also offer services for major cryptocurrencies such as Bitcoin and Ethereum.
The crypto company will focus its efforts on compliance and security. Through its regulatory bodies, the UAE has approved the business services and, therefore, will develop a strong presence in the MENA crypto sector. There has been a lot of growth in the Middle East and Africa regarding crypto innovations, and the new technology has the potential to link vast regions together through trustless technology. HashKey will start MENA operations from 19 May. The announcement suggests that HashKey will continue to expand its business globally.
Sherif Samad, manager at HashKey MENA, said the company will address the needs of institutional clients, particularly by providing over-the-counter (OTC) services for fiat and crypto exchange.
Samad further explained that HashKey will provide a regulated service that allows clients to make large transactions without worrying about legal issues. HashKey aims to provide access to crypto markets while adhering to regulatory laws and supporting the UAE as an important hub for crypto innovation.
Samad believes that HashKey is the right company for the job because it already has regulatory approval in other countries, such as Hong Kong, Japan, and Singapore. HashKey is currently seeking regulatory approval in Europe under the new MiCA license. For institutional investors, such consistency is helpful, primarily if the business in question operates trade on a global level. There are many levels to crypto adoption, including an institutional level which relies heavily on legal frameworks and regulation, mainly when operating between countries.
The UAE has been making active efforts to attract global investors so that it can establish itself as a blockchain hub. The UAE wishes to attract international players in the crypto market, especially institutional investors. For example, an Abu Dhabi state-backed firm recently announced a $2 billion investment in Binance and World Liberty Finance, using the stablecoin USD1. World Liberty Finance is a crypto project linked to the Trump family. With increasingly stringent European regulations under the MiCA system, many investors may seek external systems to conduct their business. The UAE may be a welcome reprieve for EU businesses that desire key-turn business solutions with no fuss procedures that work.
