Liminal Custody Solutions Dubai, known as “First Answer Custody FZE,” has obtained preliminary approval from Dubai’s virtual asset regulatory authority (VARA) for its digital asset custody and wallet solutions. This approval follows its license acquisition from ADGM.
Back in November 2023, Liminal, based in India, received in-principle approval from Abu Dhabi’s Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to operate as a custody provider for virtual assets. At that time, Liminal expressed its intention to become a trusted and reliable custodian for virtual assets within the ADGM jurisdiction, serving the broader MENA region.
While the ADGM website currently lists First Answer Custody Abu Dhabi, an entity of Liminal, as licensed until September 2024, it has not yet been included in the register of the financial regulatory arm of ADGM, the FSRA.
However, today’s press release announces that First Answer Custody FZE, the Dubai entity of Liminal Custody Solutions, will continue its efforts to obtain a full Virtual Asset Service Provider License from VARA. This development 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 receiving this initial approval from VARA. He emphasized the company’s commitment to meeting client needs while adhering to the highest regulatory standards. Tabch also expressed eagerness to work with VARA to finalize operations and begin regulated custody services soon.
The press release further elaborates that, after acquiring the VASP License, 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.
With its existing registration in ADGM and the in-principle approval from VARA, Liminal is well on its way to serving the MENA market.
Prior to this development, Liminal had made various announcements in the UAE, including its partnership with UAE Encryptus, which offers fiat off-ramp solutions, and its travel rule compliance solution with Notabene.
It is worth noting that Liminal is not the first crypto custodian to receive a license from ADGM. In March, UAE-based Tungsten launched the first homegrown and regulated crypto custodian after obtaining a license from the UAE’s Financial Services Regulatory Authority (FSRA) to operate within the Abu Dhabi Global Market (ADGM). The platform is designed to securely store digital assets for institutional investors.
This article was last updated at 16:52 Dubai UAE time zone on April 30th, 2024.