BitGo Expands Services in Dubai
BitGo, a company focused on digital asset infrastructure, has announced that it has successfully obtained regulatory clearance to offer a range of services in Dubai. This development coincides with the Virtual Assets Regulatory Authority (VARA) revealing its recent enforcement actions involving several businesses.
New Broker-Dealer License
On Tuesday, BitGo disclosed that its operations in the Middle East and North Africa (MENA) have now received a broker-dealer license from VARA, enabling it to facilitate regulated trading and intermediary services for institutional clients in the region. This comes on the heels of a similar license granted to BitGo’s European subsidiary by Germany’s Federal Financial Supervisory Authority, which allows the firm to extend its cryptocurrency services to local investors.
Ben Choy, the general manager of BitGo MENA, commented that this new license enhances the company’s ability to serve institutional clients with increased scale and reliability, reflecting the rapid growth of Dubai’s digital asset sector.
Regulatory Actions and Compliance
Interestingly, this licensing news follows VARA’s announcement of financial penalties levied against 19 firms for unlicensed virtual asset operations and violations of its marketing rules, highlighting the regulatory body’s commitment to maintaining oversight in the burgeoning industry. Among those penalized are notable entities like the TON DLT Foundation and Hokk Finance, marking significant enforcement actions for 2025.
The regulatory landscape in Dubai has become a focal point for many cryptocurrency businesses looking to expand their offerings, with VARA having been established in 2022 under the leadership of Sheikh Mohammed bin Rashid Al Maktoum to oversee virtual asset regulations within specialized and free zones of the Emirate.
Future Plans and IPO Aspirations
Additionally, BitGo’s intentions go beyond regional expansion; the company has also initiated steps towards a potential public offering in the United States. In September, it submitted its S-1 registration form to the U.S. Securities and Exchange Commission, paving the way for an IPO. As of June 30, BitGo reported assets exceeding $90 billion, showcasing its growth trajectory.
This emphasis on regulatory compliance across Europe and the Middle East, along with its operations in the U.S., marks a pivotal evolution in BitGo’s strategy considering its past settlement with U.S. authorities in 2020 involving a $100,000 fine for failing to block wallets associated with sanctioned countries.
