Liminal digital asset custodian receives initial approval from Dubai regulator while holding approval in Abu Dhabi as well

Liminal Custody Solutions Dubai entity, “First Answer Custody FZE”, both providers of digital asset custody and wallet solutions, has secured an initial approval from Dubai’s virtual asset regulatory authority (VARA). This comes after it also secured an approval from ADGM.

In November 2023, Indian based Liminal had received an in-Principal approval from Abu Dhabi’s Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to operate as a custody provider for Virtual Assets. At the time Liminal stated that receiving the FSP from FSRA would empower Liminal in extending its services as a trusted and reliable custodian for Virtual assets within the ADGM jurisdiction serving the broader MENA region.

On ADGM website First Answer Custody Abu Dhabi entity of Liminal is registered as being licensed until September 2024, but has yet to be fully licensed by the financial regulatory arm of ADGM the FSRA.

But today’s press release, notes that First Answer Custody FZE, the Dubai entity of Liminal Custody Solutions, will continue to work towards acquiring a full Virtual Asset Service Provider License from VARA. This marks a pivotal step towards Liminal becoming a trusted custodian for virtual assets within the UAE.

Amir Tabch, CEO of Liminal Custody Solutions Middle East stated: “We are thrilled to receive this initial approval from VARA. This achievement underscores our commitment to meeting client needs while adhering to the highest regulatory standards. We look forward to working with VARA to finalize our operations and commence regulated custody services soon.”

The press release also states, that “After securing the VASP License, Liminal’s team of industry experts and seasoned professionals will oversee its custody operations in the Middle East, implementing robust compliance and security protocols, comprehensive risk management, and thorough audit procedures to safeguard client assets.”

With an already in principle approval in ADGM, and an in principle approval from VARA, Liminal is already well underway to serving the MENA market.

Prior to this Liminal had made several announcements within the UAE, such as its partnership with UAE Encryptus which offer fiat off ramp solutions, and its travel rule compliance solution with Notabene.

Liminal is not the first crypto custodian to receive a license from ADGM, In March, Tungsten headquartered in UAE launched the first home grown and regulated crypto custodian after receiving a license from UAE’s Financial Services Regulatory Authority (FSRA) to operate at the Abu Dhabi Global Market (ADGM). The platform is designed to store digital assets securely for institutional investors.

Article updated 16:52 Dubai UAE time zone on April 30th 2024