Liminal digital asset custodian receives initial approval from Dubai regulator and holds license in Abu Dhabi

Liminal Custody Solutions Dubai entity, “First Answer Custody FZE”, both providers of digital asset custody and wallet solutions, has secured an initial approval from Dubai’s virtual asset regulatory authority (VARA). This comes after it also secure a license from ADGM which it did not mention today in its press release.

In November 2023, Indian based Liminal had received an in-Principal 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 the time Liminal stated that receiving the FSP from FSRA would empower Liminal in extending its services as a trusted and reliable custodian for Virtual assets within the ADGM jurisdiction serving the broader MENA region.

On ADGM website First Answer Custody Abu Dhabi entity of Liminal is registered as being licensed until September 2024.

But today’s press release, notes that First Answer Custody FZE, the Dubai entity of Liminal Custody Solutions, will continue to work towards acquiring a full Virtual Asset Service Provider License from VARA. This marks a pivotal step towards Liminal becoming a trusted custodian for virtual assets within the UAE.

Amir Tabch, CEO of Liminal Custody Solutions Middle East stated: “We are thrilled to receive this initial approval from VARA. This achievement underscores our commitment to meeting client needs while adhering to the highest regulatory standards. We look forward to working with VARA to finalize our operations and commence regulated custody services soon.”

The press release also states, that “After securing the VASP License, Liminal’s team of industry experts and seasoned professionals will oversee its custody operations in the Middle East, implementing robust compliance and security protocols, comprehensive risk management, and thorough audit procedures to safeguard client assets.”

But with a licensed entity in ADGM, why is it still applying for a license in VARA to serve the UAE and MENA region and why did it not mention its licensed entity in ADGM in its recent press release about VARA?

Prior to this Liminal had made several announcements within the UAE, such as its partnership with UAE Encryptus which offer fiat off ramp solutions, and its travel rule compliance solution with Notabene.