What does the recent approval from Dubai’s VARA mean for HashKey MENA FZE’s expansion and compliance strategies?
HashKey Group, a digital asset service firm in Asia, announced in their press release on Jan. 13 that their Middle East and North Africa subsidiary has received conditional acceptance for its Virtual Asset Service Provider license application from the Dubai Virtual Assets Regulatory Authority.
HashKey's Global Expansion Hits a New Milestone! 🎯
🥳HashKey has received an In-Principle Approval for Dubai VASP License.
💪Just a week ago, we secured VASP registration approval from the Central Bank of Ireland, and now, with the In-Principle VASP Approval in Dubai, our… pic.twitter.com/gJNnkDsL8h
— HashKey Group (@HashKeyGroup) January 13, 2025
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If HashKey can obtain the VASP license, the group’s MENA FZE can offer Virtual Asset Exchange Services and Virtual Asset Broker-Dealer Services to retail, qualified, and institutional investors, both in and out of the Emirate of Dubai.
This green light will also likely be a win for HashKey OTC, the Group’s over-the-counter trading arm, with expanded regulated activities across the Middle East, the press release notes.
VARA, the regulatory body overseeing virtual assets in both Dubai’s free zone and the mainland, has several main objectives. These include maintaining the Emirate’s competitive position in the digital economy, developing regulations, and protecting investors by curbing illegal practices.
According to the rulebook administered by VARA, a company’s permit must comply with VARA’s prescribed actions and conditions to maintain validity. Furthermore, if activities exist beyond Dubai, the organization has to comply with the higher standards implemented either locally or abroad. HashKey must meet all criteria to secure the official VASP license.
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HashKey’s global compliance strategy
Since embarking upon its mission to spread digital asset opportunities across Asia in 2018, HashKey Group has established offices supporting financial technologies in various locations around the world, such as Hong Kong, Singapore, Japan, and Bermuda.
Earlier this month, on Jan. 7, HashKey Group expanded into the Irish market. HashKey Europe Limited, a member of the HashKey Group, received VASP registration approval from the Central Bank of Ireland.
This approval marks HashKey Group’s first VASP license in the EU and ensures full compliance with the EU’s Fifth Anti-Money Laundering Directive. It allows HashKey Europe Limited to offer a variety of regulated services, including exchanges between virtual and fiat currencies, transfers of virtual assets, and custodian wallet services.
In addition to expanding its operations, HashKey Group is actively seeking a Markets in Crypto-Assets license to solidify its footprint in European markets.
On December 30, 2024, the European Union fully implemented the MiCA framework, establishing a unified set of rules for the crypto industry across member states. This was in response to ongoing issues such as fraud, market instability, and a lack of strong investor protection, which have long plagued the growing crypto space.
The platform recently launched the Hashkey Platform Token (HSK), which reached an all-time high of $2.59 on December 20, 2024. As of Jan. 13, HSK is trading at $1.76, reflecting a 7.03% decrease in price over the last 24 hours.
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