Nine Blocks Capital is the first crypto hedge fund to receive license from Dubai’s regulator

Nine Blocks Capital is the first crypto hedge fund to receive license from Dubai’s regulator

Dubai’s virtual asset regulatory authority has just listed UAE based Nine Blocks Capital Management as a receiving a full VASP license and will make Dubai UAE its headquarters.

As per VARA website, Nine Blocks Capital will be able to offer crypto and virtual asset investment services to institutional and qualified investors.

Nine Blocks Capital received initial approval from VARA back in August 2022. Nine Blocks was launched by by PwC’s former global crypto head Henri Arslanian.

Nine Blocks is the investment manager of the Nine Blocks Master Fund, a market neutral crypto fund focused on generating alpha from inefficiencies in the crypto markets using relative value, arbitrage and quantitative strategies.
With around $100m in AuM and a track record of more than 2 years, Nine Blocks manages assets for many leading investors globally, from regulated financial institutions and private banks to public companies and fund of funds.
This license is the culmination of a process that started with an MOU between Nine Blocks and VARA, allowing knowledge sharing and consultation.
The Nine Blocks group was set-up in 2021 with the belief that institutional investors want digital assets exposure via fund managers who have established digital assets track record, are regulated, have traditional finance experience and comply with the highest operational due diligence requirements.
Henri Arslanian, co-founder and managing partner of Nine Blocks said, “We believe that a regulatory regime tailored for the fast-moving digital assets space can not only provide comfort to institutional allocators but also contribute to the growth of a healthy crypto ecosystem.The UAE is quickly becoming a leading jurisdiction globally for digital assets and we are honored to be part of this journey.”

Nine Blocks follows a market neutral trading strategy, profiting from arbitrage opportunities and market inefficiencies across the crypto space.

GCEX crypto broker becomes fifth licensed VASP in Dubai UAE

GCEX crypto broker becomes fifth licensed VASP in Dubai UAE

GC Exchange part of the GCEX Group, has been granted an Operational VASP Licence for VA Broker Dealer services from Dubai’s Virtual Asset Regulatory Authority (VARA)

GCEX, which opened its Dubai office in July 2022 and received its MVP (Minimal Viable Product) Preparatory Licence from VARA in February 2023, can now start market operations as a Virtual Asset Service Provider (VASP) in the Emirate of Dubai, enabling brokers, hedge funds, family offices and professional traders to access its deep liquidity in digital assets and range of technology solutions.

GCEX facilitates institutional access to digital assets through its proprietary XplorDigital trading solutions, which comprises of a technology-agnostic platform covering regulation, regulated custody, the safety of funds, tier 1 liquidity and technology (both back-end and front-end). GCEX only partners with regulated institutional digital custody and staking providers and always segregates client funds.

Mehtap Önder, Managing Director, GCEX in Dubai, commented in a press release, “VARA is leading the way in the global digital asset industry, and we are extremely proud to be one of the first firms to receive a VASP Operating Licence to provide Virtual Asset Broker-Dealer services and the first firm to gain approval to operate with a client money account, highlighting our focus on client protection.Being a regulated entity in the region is important to us – it’s the ideal way to demonstrate our commitment to adhering to international standards and implementing robust processes, with transparency and investor protection at the core of our offering. This is a major milestone for our business and is critical to GCEX’s growth strategy, enabling us to have a stronger presence in the region.”

GCEX Group enables institutional clients to access deep liquidity in FX and CFDs on digital assets, as well as digital assets spot trading and conversion and a broad range of trading solutions. Headquartered in London, with multiple offices across the globe, GCEX is regulated by the UK’s FCA and registered with the Danish FSA. True Global Ventures are investors in GCEX.

To date five crypto exchanges, Fuze, BackPack, Toko, Laser Digital, and GCEX have received full licences to operate in UAE under the VARA regime, with Crypto.com still awaiting final sign offs before it receives its full VASP license. The more well global names such as Binance, ByBit, OKX have yet to receive theirs, while BitOasis remains in frozen status.

Eighteen Dubai based virtual asset providers fined by Dubai’s regulator

Eighteen Dubai based virtual asset providers fined by Dubai’s regulator

In a market notice issued November 17th 2023, the Dubai Virtual Assets Regulatory Authority (VARA), confirmed that the deadline for VA sector to engage in the regulatory license elapsed today and that eighteen virtual asset service providers commercially licensed on mainland under Dubai’s Department of Economy and Tourism (DET) have thus far, been issued fines for failing to comply with VARA’s directives and regulatory guidance.

A VARA spokesperson declined to name the eighteen entities in question.

As per the notice, in line with VARA’s commitment to protect consumers, maintain market integrity, and manage security of the Virtual Economy being enabled in and from Dubai, these enforcement actions are a pre-requisite to remedy compliance breaches and assure global markets that VARA’s regime can be trusted to have consistency and resilience in deployment.

The Dubai virtual asset regulator stated that this would be an ongoing process, with additional fines, enforcement actions, and closure of unlicensed VASPs expected. VASPs have until year end to address any regulatory gaps.

Entities seeking to continue to offer virtual asset services in Dubai are urged to contact VARA immediately to avoid further penalties. Consumers are advised to check the VARA website for advice on approved VASPs in Dubai. For further information, please contact VARA via our website or via

This comes a day after CEO Henson Orser stepped down, and 10 days after VARA issued a notice asking all VASPs to finalize their license registrations and requirements.

But there have also been positive news in the VASP licensing arena, with entities such as Fuze Finance receiving a license as well as HexTrust and BackBack in the past 10 days.

UAE home grown Fuze Finance receives license from Dubai virtual asset regulator

UAE home grown Fuze Finance receives license from Dubai virtual asset regulator

UAE based Fuze Finance under the licensed name Morpheus Software Technology (FUZE) FZE has just received a full VASP license from Dubai’s Virtual asset regulatory Authority. Fuze offers embedded digital asset capabilities for financial institutions as a digital asset infrastructure provider for the Middle East.

VARA’s license will allow Fuze Finance to offer broker dealer services, allowing them to serve institutional investors, retail and qualified investors. Through this licence, the business will be able to serve customers through two core service lines: firstly, via digital assets as a service (DAAS) enabling banks, fintechs and enterprises to integrate B2B2C digital asset products natively into their channels and secondly, through a regulated Over-The-Counter (OTC) service providing investors with a technology-first option for executing institutional-level digital asset trading with ease and efficiency.

With a regional digital asset market worth $566bn, and growing at 48% YoY, Fuze co-founder and CEO, Mohammed Ali Yusuf believes the Middle East is the perfect home to establish a digital assets infrastructure business.

Ali Yufu on receiving the license noted, “We thank VARA for assessing and approving our licence. VARA’s comprehensive and consultative process demonstrates the robust framework at the heart of this booming industry. Across the UAE, digital assets businesses are being welcomed to a thriving ecosystem with regulation that matches rapid innovation and adoption. Businesses can now have full confidence in the regulated infrastructure that Fuze provides, as we support the world’s fastest-growing digital assets hub.”

In September 2023 UAE headquartered Fuze Finance, raised a seed round of $14mn, the largest Seed investment in a digital assets startup in the history of the Middle East and North Africa region (MENA). The investment was led by Abu Dhabi-based Further Ventures, along with participation by US-based Liberty City Ventures.

Fuze wanted to benefit from the strategic capital and network of these investors, acting as a catalyst for the business as it builds the digital asset infrastructure that will drive the future of finance.  A first-of-its-kind infrastructure provider in MENA, Fuze enables any bank, fintech or traditional enterprise to easily offer regulated digital assets products to their customers through their native apps.

Fuze was founded by an expert team of fintech, traditional finance (TradFi) and decentralized finance (DeFi) leaders, with its co-founders holding extensive knowledge from experience in global hypergrowth businesses.

CEO, Mohammed Ali Yusuf (Mo Ali Yusuf) has held prominent roles at Checkout.com and Visa; Arpit Mehta (COO) was previously in the leadership team at fintech leaders like Simpl and Clear; Srijan Shetty (CTO) built algorithmic trading systems at Goldman Sachs and worked at tech leader Microsoft.

Yusuf at the time of raise stated, “We are excited to build the future of regulated financial infrastructure and digital assets out of the UAE. Regulations have played a pivotal role in propelling the UAE into a central position within the global Digital Assets industry. To receive the backing of Abu Dhabi-headquartered Further Ventures combined with the deep expertise of US-based Liberty City Ventures, confirms the relevancy and potential of Fuze’s mission to rapidly expand our cutting-edge infrastructure across the region.”

Article updated on November 20th 2023

Dubai virtual assets regulator appoints new CEO amid intensified regulatory efforts

Dubai virtual assets regulator appoints new CEO amid intensified regulatory efforts

Dubai’s Virtual Assets Regulatory Authority (VARA) in a press release has announced that Mathew White will be the new CEO of VARA which comes as VARA intensifies its efforts towards regulating the VASPs in Dubai calling on them to finalize their applications today.

As per the press release, Matthew White has 20 years of experience in technology, cyber security and digital trust while working as a partner at PricewaterhouseCoopers. Former CEO Henson Orser who is leaving to pursue other opportunities will remain fully engaged to support the new CEO as he integrates into his new role.

In a Bloomberg article it noted that VARA is poised to levy fines on over a dozen crypto firms, as the head of Dubai’s crypto regulator is poised to depart after less than a year on the job.

The news comes as VARA calls on more than 1000 legacy firms to complete their applications to register under Dubai’s unique regulatory framework by November 17th 2023, as part of Dubai’s commitment to fostering a transparent and resilient virtual asset environment.

VARA is calling on VASPs that have yet to submit the applications, have missed the notifications from their commercial licensing authorities, or have submitted incomplete forms to proactively get in touch, to avoid unintended regulatory consequences.

It seems with new VARA CEO efforts will be focused on ensuring compliance to regulatory and FATF requirements by VASPs.

Taurus opens UAE based Middle East office as more financial and non-financial entities sign up for digital asset and custodial services

Taurus opens UAE based Middle East office as more financial and non-financial entities sign up for digital asset and custodial services

Taurus SA, a FINMA-regulated Swiss institutional-grade digital asset infrastructure provider, has expanded its operations into the Middle East to serve its growing client base in the region. Taurus will service the GCC and MENA region, including KSA, Qatar and even Turkey through its Dubai UAE office.

Founded in 2018Taurus SA, a Swiss company provides enterprise-grade digital asset infrastructure to issue, custody and trade any digital assets: cryptocurrencies, tokenized assets, NFTs and digital currencies.

Managing Director, Bashir Kazour, leads Taurus’ new UAE office based in the DIFC in Dubai. M. Kazour brings more than 20 years of retail, capital markets and technology experience gained at Royal Bank of Canada, Standard Chartered and FIS, a leading banking and payment technology provider. Over the last decade, he collaborated closely with a diverse client base ranging from sovereign wealth funds and central banks to brokers and family offices.

“I am excited to lead Taurus’ efforts and build a winning franchise in the Middle East, a region known for its rapid adoption of blockchain technology and digital assets,” said Kazour. “Taurus is well-known for its unique custody and tokenization capabilities serving banking clients and large enterprises, which aligns perfectly with the needs of the region. We’ve already started interacting closely with regulators, central banks and clients and I’m looking forward to delivering cutting-edge and compliant solutions to the market.”

Speaking to LaraontheBlock on whether Taurus requires regulation by VARA, Bashir Kazour, Managing Director at Taurus SA explained, “Taurus does not need a regularity license in the UAE as we solely focus on providing the digital asset infrastructure to our clients in the region. To make it simple, Taurus is a technology provider, equipping banks and corporates, with a platform to manage any digital asset. The financial services activity is regulated by the Swiss FINMA and is not promoted outside of Switzerland.”

Taurus opened an office in DIFC Dubai because the company has already signed up some large financial institutions according to Kazour. He adds, “We are also in late stage discussions with several other financial and non-financial institutions in the Middle East region. The region is known for its rapid adoption of blockchain technology and digital assets driven by the regulatory clarity already provided through VARA, ADGM, RAK DAO initiatives, fostering innovation.”

As such Kazour reaffirms that the opening of the office in the UAE is to support this growing demand in the region for both custodial and tokenization solutions.

The office according to Kazour will serve the full Middle East region, including Qatar, KSA but also Turkey. He adds, “ We also have plans to expand to other countries as well.”

Taurus has already consolidated its European leadership position as the preferred digital asset infrastructure provider for banks and corporates, building on its Swiss market leadership with more than 60% market share. Among others, Taurus has recently announced a partnership with Deutsche Bank as well as CACEIS, one of the largest global custodians. Taurus also closed its $65 million Series B funding round last February with strategic investors including Arab Bank Switzerland, Credit Suisse, and Pictet.

Hex Trust digital asset custodian receives VARA full license

Hex Trust digital asset custodian receives VARA full license

Hex Trust, a digital asset custodian has announced that it has received a full Virtual Asset Service Provider (VASP) license from the Virtual Asset Regulatory Authority (VARA) in Dubai.

This follows the issuance of its MVP operational license in February 2023, which marks the final step in VARA’s licensing process, allowing Hex Trust to offer Virtual Assets Custodial Services to institutional clients and sophisticated investors in Dubai.

Hex Trust’s Dubai office was established in June 2022, and is led by Regional MENA Director, Filippo Buzzi.  “It is exciting for us to become one of the first virtual asset companies to receive this operating license in Dubai,” said Filippo Buzzi, Hex Trust’s Regional Director MENA. “Hex Trust is fully committed to expanding into the Middle East and sees enormous potential for digital asset growth given the progressive regulations, welcoming governments, and thriving crypto ecosystem in the region.”

“Hex Trust’s commitment to compliance and regulation has always been a priority. This focus has allowed us to be granted a full operating license in Dubai – one of the few companies to obtain this,” said Alessio Quaglini, Co-Founder and CEO of Hex Trust. “There is so much potential in the Emirate of Dubai. We’re excited to continue to scale our business in the region and make a positive contribution to the virtual asset ecosystem.”

The completion of VARA’s licensing process demonstrates Hex Trust’s commitment to provide a comprehensive, secure and compliant trading environment for digital asset investors in Dubai, and its dedication to help build the virtual asset ecosystem in the MENA region, which is fast becoming one of the world’s leading virtual asset hubs.

In July, Hex Trust received regulatory approval in France to provide digital asset custody services, introduced innovative AI-driven investment tools, and actively participated in global industry events. Hex Trust’s dedication to delivering 24/7 regulated digital asset support to its 200+ global institutional clients remains unwavering as the industry recovers from the bear market. Its resilient approach is a positive signal of confidence and underscores its commitment to building secure blockchain infrastructure and expanding its global reach as a fully-licensed digital asset custodian.

Komainu was the first to receive a digital assets custodial license by VARA.

Standard Chartered and SBI to launch $100 million digital asset venture company in UAE

Standard Chartered and SBI to launch $100 million digital asset venture company in UAE

Standard Chartered’s , venture arm SC Ventures, an innovation and fintech investment arm has partnered with Japanese SBI Holdings to establish a Digital Asset Joint Venture investment company in UAE. The parties intend to capitalize the vehicle with $100 million. The company will invest in DeFi, tokenization, consumer payments and metaverse.

The Digital Asset Joint Venture plans to make investments ranging from seed to Series C funding with a focus on investing globally.

Alex Manson, CEO, SC Ventures stated in the press release, “The region is fast becoming a hub for fintechs in the digital asset space due to its strengthening infrastructure and talent. The Digital Asset Joint Venture will be an important vehicle to explore the emerging digital asset ecosystem opportunities globally. The Joint Venture will leverage SC Ventures’ experience in digital assets through our ventures such as Zodia Custody and Zodia Markets, and through our investments in FinTech like Ripple and Metaco.”

In May 2023, Standard Chartered signed an MOU with the Dubai International Financial Centre to collaborate in the digital asset space, including digital asset custody. That same month, SC Ventures exited its stake in Metaco SA, a Swiss-based tech firm offering critical software infrastructure that enables institutions to issue, secure, manage and trade digital assets. U.S. crypto firm Ripple acquired Metaco for US$250 million in its first major acquisition. Ripple is a SC Ventures portfolio company.

“Our Digital Asset Joint Venture plans to make strategic and minority investments in areas such as market infrastructure, risk management and compliance tools, DeFi, tokenization, consumer payments, and the Metaverse. This is one of several strategic initiatives and we will continue to invest and expand our footprint in the region as well as across the digital assets ecosystem,” Manson added.

“We are thrilled to announce our partnership to establish a Digital Asset Joint Venture in UAE together with SC Ventures and bring to bear the collective capabilities of both our organisations in the digital asset space,” said Yoshitaka Kitao, SBI Holdings, Inc. Representative Director, Chairman, President & CEO. “This initiative further solidifies the strategic relationship between SBI Holdings and SC Ventures following our investment forays into SC Ventures’ portfolio companies including Solv, Zodia Custody and myZoi.”

“We congratulate SC Ventures and SBI Holdings on their drive to help shape the future of finance as they forge ahead with their first Digital Asset Joint Venture in Dubai International Financial Centre (DIFC). In a world where the conversation around digital assets has rapidly evolved from ‘why’ to an eagerly anticipated ‘when,’ DIFC stands at the forefront of regulation, having meticulously tailored its ecosystem to foster an environment that nurtures investment, fuels exponential growth, and drives innovation,” said Salmaan Jaffery, Chief Business Development Officer, DIFC.

TON and XRP tokens join Bitcoin, Ethereum and Litecoin in DIFC recognized crypto regime

TON and XRP tokens join Bitcoin, Ethereum and Litecoin in DIFC recognized crypto regime

Two new crypto tokens TonCoin (TON), and Ripple’s XRP have joined Bitcoin (BTC), Ethereum, and Litecoin as recognized crypto tokens by the Dubai Financial Services Authority (DFSA), the financial regulatory agency of the special economic zone, the Dubai International Financial Centre (DIFC).

One year since the launch of DFSA the crypto token regime and five crypto tokens can now be utilized by virtual asset firms within the DIFC. License firms will be able to incorporate XRP and TON into their virtual asset services. XRP and TON will be available for use by institutions located in the DIFC to accelerate faster, more efficient global value exchange.

Commenting on the acceptance of XRP in DIFC crypto token regime, Brad Garlinghouse, CEO of Ripple,  “Dubai continues to demonstrate global leadership when it comes to the regulation of virtual assets and nurturing innovation. It’s refreshing to see the DFSA encourage the adoption and use of digital assets such as XRP to position Dubai as a leading financial services hub intent on attracting foreign investment and accelerating economic growth. Ripple will continue to double down on its presence in Dubai and we look forward to continuing to work closely with regulators to realize crypto’s full potential.”

The recognition of TON comes a few days after TON set a world record for network speed. The TON team conducted a public test of blockchain speed. The developers reported that in 12 minutes of the experiment about 42 million transactions were performed, and the maximum speed amounted to 108,409 transactions per second.

Under the regime, firms in the Dubai International Financial Centre (DIFC) can apply for and obtain a license to provide financial services with Crypto Tokens in or from the DIFC. The DFSA’s regulatory regime is largely technology-neutral, allowing firms to provide a wide range of financial services with Crypto Tokens.

The framework is designed to accommodate firms who want to operate a Crypto Token market, provide custodial services, manage clients’ assets, establish or manage funds, or provide other financial services. The rules cover a wide range of risks relating to financial crime, technology, governance, custody, disclosure, market abuse and fraud.

Since its inception the crypto token regime has received enquiries from 100+ firms have inquired regarding operating a Crypto Token business, 5 Crypto Token variations were issued (a mix of funds and trading business). In addition one license to offer Investment Tokens was issued (to tokenize units of a fund);  and five crypto tokens have now been recognized.

DFSA will be launching its next set of proposals that will focus on custody; financial Crime; Staking for Proof of Stake (PoS) consensus mechanisms; and Fund Management

Dubai Freezone Oraseya Capital launches $136 million fund for tech startups

Dubai Freezone Oraseya Capital launches $136 million fund for tech startups

Under the patronage of H.H. Sheikh Mohamed Bin Rashid Al Maktoum, Oraseya Capital, launched from the Dubai Integrated Economic Zones Authority (DIEZ) will fund high technology startups from initial seed investment to Series B. The $136 million fund is aligned with the objectives of the Dubai Economic Agenda, D33 which aims to develop SMEs. Their investment tickets go up to $3 million but startups have to have some form of presence in Dubai, UAE.

The fund will serve as a strategic partner for startups, providing guidance, support, and the necessary tools to navigate the challenges of growth and innovation. Oraseya Capital is poised to play a significant role in shaping the future of technology startups, contributing to the sustainable development and progress of Dubai’s economy.

This launch comes days after Saeed Al Darkmaki, a UAE national well known in the crypto, blockchain and DeFi circles as an entrepreneur and investor joined BoCG, a Venture firm focused on an Arabian Peninsula Fund in MENA region, to oversee the growth of blockchain-based venture portfolios seeking the next stage of growth through their Venture Operating Model (VOM).

In early October, Deus X Capital with offices in the UAE launched with $1 billion in assets according to an article published in CoinDesk. As per the article the family office backed investment firm launched on October 2nd with Tim Grant as CEO.