The First Digital Asset Hedge Fund Receives Crypto License in Dubai
A market neutral trading firm called Nine Blocks Capital Management FZE has become the first digital asset hedge fund to obtain a crypto license from Dubai’s Virtual Assets Regulatory Authority (VARA). This move comes as more crypto companies are flocking to Dubai to tap into its growing user base.
With the newly acquired license, Nine Blocks can now offer virtual asset services, including digital asset management and investment products, to crypto users in Dubai. The firm also plans to establish its global headquarters in Dubai, which is considered a major international hub in the United Arab Emirates.
“This license is the result of an MOU between Nine Blocks and VARA, which allowed for knowledge sharing and consultation,” said a statement from Nine Blocks.
Nine Blocks press statement
Nine Blocks describes itself as a “neutral trading shop” that was established in 2021. It employs profit generation models based on relative value, arbitrage, and quantitative strategies specifically designed for crypto markets.
Dubai’s regulatory environment offers more clarity and friendliness towards crypto businesses compared to the United States. The city aims to become a global crypto hub and has been actively engaging with VARA to establish rules for digital asset operators.
Other companies such as Binance, crypto.com, Hex Trust, and OKX have already benefited from Dubai’s crypto licensing regime by gaining approval to operate in the region and serve customers.
In addition to crypto licensing, Dubai has also seen interest in tokenization projects that explore the intersection of real estate markets and blockchain technology. Companies like Taurus, backed by Deutsche Bank, are actively exploring these opportunities.
Hot Take: Dubai’s Growing Importance in the Crypto Industry
Dubai’s emergence as a crypto-friendly jurisdiction and its efforts to become a global crypto hub are attracting significant attention. The approval of Nine Blocks Capital Management FZE as the first digital asset hedge fund to receive a crypto license from VARA further solidifies Dubai’s position in the industry. With its regulatory clarity, favorable business environment, and growing user base, Dubai is becoming an attractive destination for crypto companies seeking new opportunities. As more firms establish their presence in Dubai, we can expect increased innovation and investment in the region’s crypto ecosystem.
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