Nexo puts recent problems with Middle East licensing behind it.

Cryptocurrency lending platform Nexo is looking to sidestep troubles in Bulgaria and the United States after a Dubai-based entity received initial approval from the Emirates Virtual Assets Regulatory Authority (VARA).

The announcement, shared with Cointelegraph via email on March 5, marks the first approval for Nexo Services FZE for virtual asset lending and lending, management and investment and broker-dealer services.

The company should explore the next steps — obtaining a pre-licensing following the final operating permit — to fully offer those crypto services to regional customers through mobile and web platforms.

Nexo co-founder and managing partner Kalin Metodiev described the initial approval to Cointelegraph as “a stepping stone for further global expansion, now reaching seven million customers worldwide.” He added:

“Over the years, Nexo has seen impressive growth in its customer base, and the only way to achieve this is through our sustainable operations and global licensing, careful risk management and institutional-level security.”

Related: Dubai regulator VARA sets crypto precedent for world to follow.

Nixo's UAE stake in the US has been disrupted, the company said, after agreeing to pay a $45 million fine to the Securities and Exchange Commission to cut interest rates for its US customers. and the Securities Managers Association of North America for not registering the product.

“We are satisfied with this unanimous decision, which unequivocally ends Nexo's relationship with the United States,” Nexo co-founder Anthony Trenchev told Cointelegraph.

Nexo also faces issues in Bulgaria, which settled a $3 billion damages claim after local authorities dropped their illegal work charges. Initially accused of orchestrating a crypto lending scheme from 2018 to 2023, the charges were dismissed in December 2023, partly due to the country's lack of a proper legal framework for crypto assets.

However, the United Arab Emirates — home to the financial hubs of Abu Dhabi and Dubai — has become a magnet for global crypto players, attracted by its regulatory transparency and clear compliance pathways.

Earlier this year, the Dubai branch of crypto exchange OKX was granted a VASP license by VARA for exchange services. However, while the platform works to meet all regulatory requirements, the license will remain inactive, it is expected to activate the license in the coming months.