Nine Blocks Capital Management has achieved a milestone by becoming the first crypto hedge fund to secure a Virtual Asset Management and Investment Services license from Dubai’s Virtual Assets Regulatory Authority (VARA). In addition to this historic licensing achievement, Nine Blocks has also announced its decision to relocate its headquarters to Dubai, positioning itself at the heart of the burgeoning global crypto hub. The move aligns with the company’s commitment to providing institutional investors with exposure to digital assets through a regulated framework, backed by a proven track record in digital assets, traditional finance experience, and adherence to rigorous operational due diligence standards. This relocation follows a trend of crypto-related businesses, including Crypto.com, obtaining licenses and establishing a presence in Dubai, underscoring the city's growing prominence in the global crypto landscape.
The Dubai Virtual Assets Regulatory Authority, established in February 2022, plays a crucial role in regulating cryptocurrency activities within the city. Nine Blocks' strategic move emphasizes Dubai's favorable regulatory environment, reinforcing the city's reputation for effective crypto regulation that encourages both adoption and innovation. The Middle East and North Africa region, where Dubai is situated, account for nearly 7.2% of the global transaction volume in the crypto space, with an annual on-chain value surpassing $389.8 billion, according to Chainalysis data. Notable crypto entities like Kraken, OKX, and Binance have already set up operations in Dubai, with Binance becoming the first digital asset exchange to secure an Operation Minimum Viable Product (MVP) under VARA in June.
Dubai's appeal as a crypto-friendly destination stands in contrast to the regulatory challenges faced by the industry in North America, where authorities have been intensifying scrutiny. The recent guilty plea by Binance founder Changpeng Zhao, acknowledging violations of the Bank Secrecy Act and other charges, has triggered regulatory actions resulting in a $4.3 billion fine for Binance. Against this backdrop, Dubai's proactive approach to blockchain technology has fostered a thriving industry, positioning security and innovation as integral components of its blockchain ecosystem. As the global crypto landscape undergoes significant shifts, Dubai's commitment to embracing digital assets and fostering a secure, innovative industry is evident in its growing appeal to leading crypto enterprises.
