Nexo overcomes recent challenges as it secures approval for a license in the Middle East.

Nexo, the cryptocurrency lending platform, is seeking to overcome its challenges in Bulgaria and the United States with the approval of its Dubai entity by the emirate’s Virtual Assets Regulatory Authority (VARA). The initial approval granted to Nexo Services FZE includes virtual asset lending and borrowing, management and investment, and broker-dealer services. Nexo must now progress through the subsequent phases to obtain the preparatory license and final operating license, allowing it to offer these crypto services to clients in the region through its mobile and web platforms. Kalin Metodiev, co-founder and managing partner at Nexo, sees the initial approval as a significant milestone in the company’s global expansion, which has now reached seven million clients worldwide.
Following its difficulties in the United States, Nexo has shifted its focus to the United Arab Emirates (UAE). The company recently announced the discontinuation of its yield-bearing Earn Interest offering for US customers after agreeing to pay $45 million in penalties for failing to register the product. Nexo co-founder Antoni Trenchev expressed satisfaction with the resolution, stating that it puts an end to speculation about Nexo’s relationship with the US and allows them to concentrate on developing financial solutions for customers worldwide.
Nexo also faced challenges in Bulgaria, resulting in a claim for $3 billion in damages after authorities withdrew charges of illicit operations. The allegations, related to a supposed crypto lending scheme, were dismissed due to the country’s lack of a clear legal framework for crypto assets. However, the UAE, with its regulatory clarity and compliance pathways, has become an attractive destination for global crypto players. For example, OKX’s Dubai subsidiary was granted a VASP license by VARA earlier this year, although it is not yet operational as the platform works to meet regulatory requirements before activating the license in the near future.