All across the Middle East and other parts of the world, the United Arab Emirates has stood out as one of the top countries that has adopted cryptocurrency and blockchain technology. In fact, the country has rules and regulations about these digital assets. These regulations are explicitly stated and very comprehensive and advanced when compared to other countries. It is not shocking to see different cryptocurrency custody solutions spring up.
Cryptocurrency Custody Solutions
Cryptocurrency custody solutions are autonomous storage and security mechanisms crypto owners use for safeguarding substantial amounts of tokens. These technologies serve as third-party providers offering storage and security services for cryptocurrencies. Primarily targeting institutional investors, such as hedge funds, who possess significant amounts of bitcoin or other cryptocurrencies, these solutions typically integrate a blend of hot storage (connected to the Internet) and cold storage (disconnected from the Internet) for crypto custody.
Cryptocurrency custody solutions stand as one of the recent advancements for crypto lovers and owners in the cryptocurrency ecosystem. These solutions have the chance to create a way for institutional capital to enter the crypto ecosystem.
Cryptocurrency Custody Solutions in the United Arab Emirates
Changer.ae
Late last year, Changer.ae Ltd, a premier independent crypto custodian service, officially launched its platform in Abu Dhabi. This platform offers individuals worldwide a dependable, user-friendly, and easily accessible wallet for safeguarding and managing their digital assets.
This cryptocurrency custody solution is regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) in the UAE. Changer has to follow all FSRA rules and regulations about safe custody provisions, technology governance, and other system controls.
Standard Chartered
In 2023’s last quarter, Standard Chartered revealed its plans to launch custody services for Bitcoin and ether in Dubai by the first quarter of 2024. Additionally, the bank is nearing the completion of the process to secure In-Principle Approval to operate as a cryptocurrency broker-dealer in Abu Dhabi’s over-the-counter market. Standard Chartered’s new custodial services will operate under Zodia Custody. Standard Chartered Ventures back Zodia Custody. Also, Zodia Custody has already shown its credibility by obtaining approvals from regulators in the UK, Ireland, and Luxembourg.
Northstake
Northstake recently secured preliminary approval from Dubai’s Virtual Asset Regulatory Authority (VARA). This makes the initial phase towards obtaining a Virtual Asset Service Provider (VASP) license.
Once Northstake gets this license, the company will be able to provide crypto custody services, including custodial staking, to institutional investors in Dubai. The end goal of the firm is to leverage the UAE as a “strategic hub” to assess potential expansion avenues.
Final Words
The United Arab Emirates continues to uphold its position as a crypto hub. This creates an environment for companies to look into providing cryptocurrency custody solutions set up in the country. Currently, companies providing these solutions include Northstake, Changer.ae, Standard Chartered, etc.
