HashKey MENA plans expansion with conditional VASP license approval from Dubai’s VARA

HashKey Group, a leading digital asset service provider, has taken a significant step forward in its expansion plans by announcing that its Middle East and North Africa (MENA) subsidiary, HashKey MENA FZE, has received conditional acceptance for its Virtual Asset Service Provider (VASP) license application from the Dubai Virtual Assets Regulatory Authority (VARA) on January 13, 2025. This marks a crucial milestone for HashKey as it works to expand its presence in the rapidly growing Middle Eastern market.

The conditional approval from VARA is a major development for HashKey MENA, as it enables the subsidiary to offer Virtual Asset Exchange Services and Virtual Asset Broker-Dealer Services. The license, once officially granted, will allow HashKey MENA to provide its services to a broad range of clients, including retail, qualified, and institutional investors, both within the Emirate of Dubai and internationally.

This conditional acceptance is also likely to benefit HashKey’s over-the-counter (OTC) trading arm, HashKey OTC, by expanding its regulated activities in the Middle East. The license represents a key opportunity to capture a share of the growing demand for digital asset services in the region, which has seen significant interest from both investors and regulators seeking to establish a balanced framework for crypto trading and investments.

VARA plays a crucial role in ensuring that Dubai maintains its competitive edge in the digital economy while safeguarding investor interests. The authority aims to create a robust regulatory environment for digital assets, promoting transparency, stability, and protection against illegal activities in the sector. Companies like HashKey must adhere to VARA’s prescribed actions and conditions to maintain the validity of their license.

If HashKey MENA’s VASP license is fully approved, it will be subject to ongoing compliance with VARA’s guidelines. Moreover, if HashKey operates outside Dubai, it will need to meet the higher regulatory standards implemented either locally or internationally.

HashKey Group has been actively expanding its global footprint, with offices and operations in several key markets. The firm’s expansion into the MENA region follows its previous growth in Asia, where it has established offices in Hong Kong, Singapore, Japan, and Bermuda. The group is also making inroads into European markets. Earlier in January 2025, HashKey Europe Limited, a subsidiary of HashKey Group, received VASP registration approval from the Central Bank of Ireland, marking its first VASP license in the European Union. This approval allows HashKey Europe to provide regulated services such as virtual-to-fiat currency exchanges, virtual asset transfers, and custodial wallet services.

As part of its ongoing efforts to strengthen its position in Europe, HashKey Group is actively pursuing a Markets in Crypto-Assets (MiCA) license. The MiCA framework, which came into effect in December 2024, aims to standardize regulations across the EU, addressing concerns related to fraud, market volatility, and investor protection.

In addition to its regulatory efforts, HashKey Group recently launched the Hashkey Platform Token (HSK), which reached an all-time high of $2.59 on December 20, 2024. As of January 13, the token is trading at $1.76, reflecting a slight decrease in price over the past 24 hours. This reflects the broader market volatility often associated with digital assets, but the launch of HSK and its subsequent performance highlight HashKey’s innovative approach in the blockchain and digital assets space.

Looking ahead, HashKey Group’s ongoing expansion and regulatory achievements in Europe and the MENA region are likely to solidify its position as a leading player in the global digital asset services market. By staying compliant with evolving regulations in various regions and continuing to innovate, HashKey is well-positioned to capitalize on the growing demand for regulated crypto services in both established and emerging markets.