Hong Kong's HashKey Group Receives UAE Regulatory Approval for Crypto Exchange

Hong Kong-based HashKey Group has secured a Virtual Asset Service Provider (VASP) licence from Dubai's Virtual Assets Regulatory Authority (VARA), enabling the company to launch operations in the United Arab Emirates through its new subsidiary, HashKey Global MENA.

The licence, granted to HashKey MENA FZE, the operating entity of HashKey Global MENA, authorises the provision of both Virtual Asset Exchange Services and Virtual Asset Broker-Dealer Services within and originating from the Emirate of Dubai. The platform is scheduled to go live on 19 May.

The expansion into the MENA region marks a significant step in HashKey's strategy to establish a broader international presence, with the UAE emerging as a key digital asset hub in the Middle East. The company already maintains digital asset licences in Hong Kong, Singapore, Japan, and Bermuda, along with VASP registration in Ireland.

HashKey Global MENA will offer institutional and retail clients access to major cryptocurrencies including Bitcoin and Ethereum, alongside stablecoins such as USDT and USDC. The platform will provide both USD and AED deposits and withdrawals, leveraging Standard Chartered as a strategic partner for fiat currency services.

The fiat gateway services represent a key differentiator for the platform, allowing users to transfer funds directly from their bank accounts to HashKey Global MENA's fiat wallet without requiring third-party payment processors. Standard Chartered's involvement provides the platform with access to the bank's established banking infrastructure, potentially reducing transaction times and costs for customers. The partnership enables dual-currency support, with both US dollars and UAE dirhams accepted, catering to the diverse client base across the region. The bank's "industry-leading" on and off-ramp solution suggests the platform will offer competitive transaction processing times compared to other regional exchanges, though specific timeframes have not been disclosed.

The exchange will feature over-the-counter (OTC) services designed specifically for institutional clients and high-net-worth individuals requiring large-volume transactions. These services include regulated block trading with what the company describes as "competitive all-inclusive pricing," eliminating hidden fees that often plague institutional trading. The OTC desk promises instant execution for large orders, a feature designed to prevent the price slippage that can occur when executing substantial trades through traditional order books. Settlement options are described as "flexible," likely offering same-day or next-day settlement depending on client requirements. This positions the OTC service as an alternative to traditional institutional trading channels, where large transactions often face liquidity constraints and significant market impact.

The platform's OTC services will provide access to what HashKey describes as "top-tier cryptocurrencies," focusing on the most liquid and institutional-friendly assets. Bitcoin and Ethereum form the cornerstone of the offering, reflecting their status as the most widely adopted cryptocurrencies among institutional investors. The inclusion of stablecoins USDT and USDC provides clients with options for hedging or maintaining value in US dollar-pegged assets. The OTC service integrates with the platform's fiat gateway, allowing clients to move seamlessly between digital assets and both USD and AED. All digital assets are held in custody on the VARA-licensed platform, which implements what the company terms "institutional-grade safeguards," likely including multi-signature wallets, cold storage solutions, and segregated client funds.

"As a licensed platform, HashKey Global MENA embraces institutional needs by offering a regulated gateway for fiat-crypto transactions, backed by institutional-grade safeguards and strategic partnerships like Standard Chartered. Our regional expansion ambitions, with a strategic focus on the GCC, are rooted in empowering MENA's institutions and HNWIs with seamless, cost-efficient access to global crypto markets, reinforcing the UAE's position as a hub for blockchain innovation while prioritising compliance and client protection at every step," said Sherif Sanad, Country Manager, HashKey Global MENA.

"At HashKey, we believe innovation in crypto shouldn't come at the cost of compliance. In fact, the industry's future depends on building boldly—while staying within clear, trusted regulatory frameworks. That's why we're committed to working closely with regulators around the world to deliver reliable digital asset products and services on a global scale," continued Sanad.

The company's Standard Chartered partnership will provide what it describes as an "industry-leading" fiat on and off-ramp solution, designed to offer users a reliable deposit and withdrawal experience. All assets will be custodied on the VARA-licensed platform with institutional-grade security measures.

HashKey positions the UAE as the third-largest crypto economy in the MENA region and plans to develop additional innovative digital asset products within VARA's regulatory framework. The company is also actively pursuing a Markets in Crypto-Assets (MiCA) licence in the European Union as part of its broader regulatory expansion strategy.

The launch of HashKey Global MENA represents another step in the UAE's efforts to establish itself as a global digital asset hub, with Dubai's VARA providing regulatory oversight for virtual asset service providers operating in the emirate.