- HashKey MENA gets conditional approval for a VASP license to expand virtual asset services in Dubai.
- The VASP license will let HashKey provide asset exchange and broker-dealer services to all types of investors.
- HashKey must meet VARA’s strict standards to secure the final license and operate in and beyond Dubai.
HashKey Group, a digital asset financial services firm, has announced In-Principle approval for its Virtual Asset Service Provider (VASP) license. The approval comes from the Dubai Virtual Assets Regulatory Authority. This marks a significant step for the expansion of HashKey into the Middle East and North Africa (MENA) region.
Authorization for Broader Services
Once the VASP license is finalized, HashKey MENA FZE can provide Virtual Asset Exchange Services and Broker-Dealer Services. These offerings will cater to retail, qualified, and institutional investors within and outside Dubai.
The license also allows HashKey to strengthen its over-the-counter trading operations under its regulated arm, HashKey OTC.
Regulatory Oversight and Compliance
Dubai’s free zone and mainland areas are overseen by VARA, which handles virtual asset regulations. It aims to maintain the region’s competitive position in the digital economy while protecting investors and curbing illegal practices.
To retain the license, HashKey must adhere to VARA’s standards, which include prescribed conditions and compliance measures. Additionally, activities beyond Dubai must meet higher regulatory standards.
Expansion Strategy Backed by Licensing
HashKey’s global expansion relies heavily on regulatory approvals. The group holds licenses in key markets such as Hong Kong, Singapore, Japan, and Bermuda. Last week, HashKey secured a VASP registration from the Central Bank of Ireland. The firm is also pursuing a MiCA license in Europe to further expand its operations.
Building a Diverse Web3 Ecosystem
HashKey has built a robust Web3 ecosystem that includes solutions like the Ethereum Layer 2 HashKey Chain and the tokenization platform HashKey Tokenization. It also launched its platform token, HSK, on November 26. With the conditional VASP license in Dubai, HashKey is set to solidify its position as a trusted leader in the digital asset industry.
The firm’s activities in the MENA region reflect a broader strategy to tap into emerging markets while ensuring compliance with local regulations.
