Liminal Custody Solutions Dubai, operating under the name “First Answer Custody FZE,” has recently obtained preliminary approval from Dubai’s virtual asset regulatory authority (VARA). This approval follows their acquisition of a license from ADGM.
Back in November 2023, Liminal, based in India, received an in-principle approval from Abu Dhabi’s Financial Services Regulatory Authority (FSRA) to operate as a custody provider for virtual assets within the ADGM jurisdiction. Liminal expressed their belief that obtaining the FSP from FSRA would enable them to extend their services as a trusted and reliable custodian for virtual assets in the broader MENA region.
Although the ADGM website shows that the registered entity, First Answer Custody Abu Dhabi, is licensed until September 2024, it has not yet been listed in the register of ADGM’s financial regulatory arm, FSRA.
However, in today’s press release, it is mentioned that First Answer Custody FZE, the Dubai entity of Liminal Custody Solutions, will continue its efforts to obtain a full Virtual Asset Service Provider License from VARA. This development is a significant step towards establishing Liminal as a trusted custodian for virtual assets in the UAE.
Amir Tabch, CEO of Liminal Custody Solutions Middle East, expressed his excitement about receiving this initial approval from VARA. He emphasized that this achievement highlights their commitment to meeting client needs while adhering to the highest regulatory standards. Tabch also mentioned their eagerness to collaborate with VARA to finalize operations and begin offering regulated custody services.
The press release further states that once the VASP License is secured, Liminal’s team of industry experts and experienced professionals will oversee custody operations in the Middle East. They will implement robust compliance and security protocols, comprehensive risk management, and rigorous audit procedures to safeguard client assets.
With an existing license in ADGM and an in-principle approval from VARA, Liminal is well on its way to serving the MENA market.
Prior to this, Liminal had made several announcements in the UAE, including their partnership with UAE Encryptus, which offers fiat off-ramp solutions, and their travel rule compliance solution with Notabene.
It should be noted that Liminal is not the first crypto custodian to receive a license from ADGM. In March, Tungsten, headquartered in the UAE, launched the first locally regulated crypto custodian after obtaining a license from UAE’s Financial Services Regulatory Authority (FSRA) to operate in the Abu Dhabi Global Market (ADGM). The platform is specifically designed to securely store digital assets for institutional investors.
This article was last updated at 16:52 Dubai UAE time zone on April 30th, 2024.
