Liminal Custody Solutions Dubai, known as “First Answer Custody FZE,” has received preliminary approval from Dubai’s virtual asset regulatory authority (VARA). This approval is in addition to the license it previously obtained from Abu Dhabi Global Market (ADGM), although it was not mentioned in the recent press release.
In November 2023, Liminal received an in-principle approval from Abu Dhabi’s Financial Services Regulatory Authority (FSRA) to operate as a custody provider for Virtual Assets. Liminal expressed its commitment to becoming a trusted custodian for virtual assets in the ADGM jurisdiction and the wider MENA region.
According to the ADGM website, First Answer Custody Abu Dhabi, an entity of Liminal, is licensed until September 2024. However, the recent press release highlights that First Answer Custody FZE, the Dubai entity of Liminal Custody Solutions, is working towards obtaining a full Virtual Asset Service Provider License from VARA. This is an important 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 the initial approval from VARA. He emphasized the company’s dedication to meeting client needs and complying with regulatory standards. Liminal looks forward to finalizing its operations and providing regulated custody services in the near future in collaboration with VARA.
The press release also mentions that once the VASP License is secured, Liminal’s team of industry experts will oversee custody operations in the Middle East. They will implement rigorous compliance and security protocols, comprehensive risk management, and thorough audit procedures to ensure the safety of client assets.
Despite already having a licensed entity in ADGM, Liminal is still pursuing a license from VARA to serve the UAE and MENA region. The reason for this decision and the omission of the ADGM license in the recent press release about VARA remains unclear.
In addition to these developments, Liminal has previously announced partnerships in the UAE, including a collaboration with UAE Encryptus to offer fiat off-ramp solutions and a travel rule compliance solution with Notabene.
