The approval is for activities involving Virtual Asset Lending & Borrowing, Management & Investment, and Broker-Dealer functions. This initial approval marks Nexo's strategic move into the Dubai market, positioning it among the first digital asset lending institutions to do so. Upon obtaining the necessary licensing, Nexo will integrate these services into its platform, ensuring compliance with local regulations. These services will be accessible to Nexo clients through both mobile and web platforms.
The move comes in the context of Dubai's efforts to shape the future of finance and entrepreneurship through progressive regulations and an innovation-centric culture. Recognised for attracting top-tier financiers, technology innovators, and forward-thinking companies, the UAE is committed to embracing new technologies such as blockchain.
In the company press release, officials from Nexo expressed enthusiasm about the firm's contribution to the regional ecosystem, leveraging Dubai's regulatory framework for virtual assets. Dubai's proactive stance on blockchain dates back to 2016 with the launch of early blockchain strategies and culminated in the establishment of VARA in 2022.
Established in March 2022 under Law No.4 of 2022, VARA is tasked with regulating, supervising, and overseeing Virtual Assets (VAs) and VA Activities across Dubai. It plays a central role in shaping Dubai's legal framework for virtual asset industry governance, prioritising investor protection and international standards while supporting a vision for a borderless economy.
In February 2024, Nexo partnered with Sift, aiming to protect customers against digital risk and simplify user experience. The official press release detailed that the partnership between Nexo and Sift focused on allowing the former to improve its approach to fraud prevention, enhancing security measures, and ensuring a safer and more efficient experience for its user base.
Through this partnership, Nexo aimed to leverage Sift’s Payment Protection and Account Defense products, using their artificial intelligence (AI) and machine learning (ML) technology, as well as their real-time intelligence to offer protection against several account and payment fraud difficulties. With Payment Protection, Nexo integrated its platform with fraud prevention in a bid to obtain accelerated transaction approvals and enhanced protection of customer funds.
On the other hand, Sift’s Account Defense focused on securing user accounts by preventing account takeovers, therefore supporting Nexo’s operational effectiveness, and minimising losses associated with compromised accounts.
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