Liminal Custody Solutions Dubai, operating under the name “First Answer Custody FZE,” has received initial approval from Dubai’s virtual asset regulatory authority (VARA). This development follows the company’s acquisition of a license from Abu Dhabi Global Market (ADGM), although this was not mentioned in the recent press release.
Back in November 2023, Liminal received an in-principal approval from the Financial Services Regulatory Authority (FSRA) of ADGM to operate as a custody provider for virtual assets. Liminal expressed its intention to extend its services as a trusted custodian for virtual assets in the broader MENA region within the ADGM jurisdiction.
According to the ADGM website, First Answer Custody Abu Dhabi, an entity of Liminal, is registered and 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 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 the initial approval from VARA. He emphasized the company’s commitment to meeting client needs while adhering to the highest regulatory standards. Liminal looks forward to finalizing its operations and commencing regulated custody services in collaboration with VARA.
The press release also mentioned that once the VASP License is secured, Liminal’s team of industry experts and seasoned professionals will oversee custody operations in the Middle East. They will implement robust compliance and security protocols, comprehensive risk management, and thorough audit procedures to safeguard client assets.
Despite having a licensed entity in ADGM, Liminal is still applying for 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 remains unclear.
In previous announcements, Liminal highlighted its partnerships within the UAE, including its collaboration with UAE Encryptus for fiat off-ramp solutions and its travel rule compliance solution with Notabene.