TLDR
- BitGo’s MENA arm secured a broker-dealer license from Dubai’s VARA for crypto services.
- VARA issued penalties to 19 firms for unlicensed virtual asset activities in Dubai.
- BitGo continues international expansion with licensing approvals in Europe and Dubai.
- BitGo files for a U.S. IPO with over $90 billion in assets under custody as of June 30.
Digital asset infrastructure company BitGo has announced that its Middle East and North Africa (MENA) arm has secured a broker-dealer license from Dubai’s Virtual Assets Regulatory Authority (VARA). This new approval allows BitGo to offer regulated digital asset trading and intermediation services to institutional clients in the region.
The development comes as the company continues its expansion into international markets and aligns itself with growing regulatory frameworks in both the Middle East and Europe.
VARA’s Enforcement Actions
The approval for BitGo comes amid heightened regulatory activity in Dubai’s digital asset space. On the same day, VARA announced enforcement actions against 19 companies for engaging in unlicensed virtual asset activities and breaching marketing regulations. These penalties reflect the authority’s ongoing efforts to maintain compliance within Dubai’s expanding digital asset ecosystem. VARA, established in 2022 under the leadership of Sheikh Mohammed bin Rashid Al Maktoum, oversees the regulation of digital assets in the Emirate’s special development zones.
The swift action taken by VARA highlights its commitment to ensuring that companies operating in the region adhere to stringent regulatory standards. This environment is crucial for companies like BitGo, which rely on regulatory clarity to build trust with institutional clients.
BitGo’s International Expansion Efforts
BitGo’s licensing approval in Dubai follows a similar move in Europe. Just weeks earlier, the company’s European subsidiary received authorization from Germany’s Federal Financial Supervisory Authority to offer crypto services to local investors.
These steps are part of BitGo’s broader strategy to strengthen its global presence. The company has also been preparing for a potential U.S. initial public offering (IPO), having filed its S-1 registration with the U.S. Securities and Exchange Commission in September. As of June 30, BitGo reported over $90 billion in assets under custody.
These developments represent significant milestones for the company, which had previously faced regulatory hurdles. In 2020, BitGo settled with U.S. authorities over a $100,000 fine related to allegations of inadequate due diligence in blocking wallets connected to sanctioned countries. Despite this setback, BitGo has focused on expanding its regulatory footprint in both traditional and emerging markets.
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