Sebastian Sinclair

<div id="highlights-block_62b124acabb52" class="highlights">
 <ul>
 <li>Dubai&#8217;s government is hoping to attract foreign investment following the passage of its Virtual Asset Law in February</li>
 <li>Hex Trust is the latest crypto firm to be approved, in part, for licensure within the emirate</li>
 </ul>
 
</div>



Hong Kong-based crypto custodian Hex Trust has become the latest crypto firm to receive provisional approval from the Government of Dubai to conduct business in the region.



Hex Trust said it is in the process of obtaining a Virtual Asset MVP License via the emirate&#8217;s Virtual Assets Regulatory Authority (VARA) to provide a range of services to institutional clients and investors, according to a statement Monday.



VARA, set up in March of this year, oversees virtual asset regulation via a licensing regime. The regulator is also responsible for developing strategic plans and policies relating to digital assets in the region, as well as establishing and overseeing know-your-customer checks and anti-money laundering rules.



It also became the world&#8217;s first regulator in May to establish a presence in the <a href="https://mediaoffice.ae/en/news/2022/May/03-05/Dubai-Virtual-Assets-Regulatory-Authority-becomes-world-first" target="_blank" rel="noreferrer noopener">metaverse</a> as a means of increasing accessibility to stakeholders.



With provisional approval now in hand, the custodian said it would open an office in Dubai for use as a regional headquarters in the Middle East. 



The move follows the custodian&#8217;s recent and first significant raise, an <a href="https://cms.blockworks.co/hex-trust-raises-88m-in-series-b-to-expand-into-europe-middle-east/" target="_blank" rel="noreferrer noopener">$88 million</a> Series B funding round in March, where funds were put toward scaling its operations in the Middle East and Europe.



Crypto firms continue to flock to the major Arab emirate following Dubai&#8217;s head, Sheikh Mohammed bin Rashid Al Maktoum, passing the &#8220;Regulation of Virtual Assets in the Emirate of Dubai&#8221; in February.



Better known as the Virtual Asset Law, the regulation sets about providing clear guidelines and definitions regarding digital assets, including NFTs (non-fungible tokens).



Several major crypto firms including <a href="https://cms.blockworks.co/ftx-granted-crypto-license-with-dubai-hq-in-sights/" target="_blank" rel="noreferrer noopener">FTX</a>, <a href="https://cms.blockworks.co/binance-granted-license-to-operate-in-dubai/" target="_blank" rel="noreferrer noopener">Binance</a>, <a href="https://cms.blockworks.co/crypto-com-secures-provisional-approval-to-open-crypto-exchange-in-dubai/" target="_blank" rel="noreferrer noopener">Crypto.com</a>, Bybit and <a href="https://cms.blockworks.co/kraken-receives-abu-dhabis-first-virtual-asset-exchange-license/" target="_blank" rel="noreferrer noopener">Kraken</a> have recently established regional headquarters or received licenses to operate in the United Arab Emirates.



&#8220;Hex Trust is excited and 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,&#8221; Filippo Buzzi, Hex Trust&#8217;s regional director for the Middle East and North Africa, said in the statement.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

Dubai

Hex Trust Greenlit for Virtual Asset License in Dubai

<div id="highlights-block_623157da34aae" class="highlights">
 <ul>
 <li>The crypto custodian said it has raised tens of millions of dollars to scale operations and obtain additional licenses</li>
 <li>While Animoca Brands and Liberty City Ventures co-led, the round also saw participation from Ripple, Terra and Morgan Creek, among others</li>
 </ul>
 
</div>



Hong Kong-based crypto custodian Hex Trust said it has raised tens of millions of dollars in fresh capital to scale its operations to the Middle East and Europe, according to a <a href="https://hextrust.com/resources-collection/hex-trust-raises-88-million-series-b-funding-scale-asias-leading-digital-asset-custodian" target="_blank" rel="noreferrer noopener">statement</a> on Tuesday.



The Series B funding round, co-led by Animoca Brands and Liberty City Ventures, garnered $88 million in capital, which saw its valuation rise to $300 million.



It marks the company&#8217;s first significant raise and is consistent with growing interest from outside parties seeking to invest in platforms and technology used in the safekeeping of digital assets.



Participants in the round also included Ripple, Terra, Morgan Creek, Primavera Venture Partners, LeadBlock Partners, Eterna Capital, Sino Global Capital, Topaz and real estate giant New World Development&#8217;s CEO Adrian Cheng, among others.



Funding will also be used to obtain additional licenses and expand Hex Trust&#8217;s business services as well as continue the development of its &#8220;bank-grade&#8221; custody platform HexSafe.



Provider of licensed and insured bank-grade custody solutions for crypto, Hex Trust has continued to lure investment from venture capitalists and crypto firms looking to take a punt on the four-year-old company.



Last year, Hex Trust nabbed $6 million via Series A funding and a further $10 million in an extended round led by Animoca in a bid to further branch out across South-East Asia. The company also tapped the <a href="https://cms.blockworks.co/custodian-hex-trust-launches-digital-assets-pilot-with-philippines-union-bank/" target="_blank" rel="noreferrer noopener">Union Bank of the Philippines</a> to assist in the expansion of its custody services in that country.



Hex Trust currently employs 100 people across offices based in Hong Kong, Singapore and Vietnam.



&#8220;It was a tremendous year of growth for Hex Trust and this funding round enables us to continue scaling,&#8221; said Hex Trust CEO Alessio Quaglini.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">&#8220;As large institutions continue adopting digital assets at an increased pace, they need fully licensed custody services to meet compliance and regulatory standards.&#8221;</blockquote>



Digital asset custodians continue to attract large investors, oftentimes accompanying significant capital raises. In January, crypto custodian Fireblocks&nbsp;raised a staggering $550 million in a Series E round co-led by D1 Capital Partners and Spark Capital, which saw the company valued at $8 billion.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>