Nine Blocks Capital Management became the first cryptocurrency hedge fund to receive a Virtual Assets Regulatory Authority (VARA) license from Dubai.
Dubai, which stands out day by day with its interest in the cryptocurrency sector, has opened its doors to a cryptocurrency industry for the first time. hedge to the fund opened. Nine Blocks by Monday, November 27 In a statement made on the day, Dubai VARA It was stated that they were the first cryptocurrency hedge fund to receive the license.
With this license obtained, Nine Blocks operates in a legally regulated manner. cryptocurrency hedge service, management and investment services And borrowing and lending, swap And arbitrage will be able to offer services such as.
Making a statement on the subject, Nine Blocks co-founder Henri Arslanianstated that they will provide high quality services to their investors in accordance with the regulations with their market-independent strategies:
I think what’s interesting is that VARA has really created an ecosystem for crypto in Dubai. Most of our hedge fund’s counterparties are within a one-minute walk of my office. Everyone is within this one square kilometer area, which makes it easy to meet, chat and generally have a good exchange of information. Since we are market neutral, we do not take any directional risk, so it is not very important to us whether Bitcoin will rise or fall. We generate alpha from inefficiencies in crypto markets. Therefore, we will arbitrage between the spot price of Bitcoin and Ethereum, for example, with perpetual swaps.
In order for cryptocurrency companies in Dubai, the most populous city of the United Arab Emirates, to operate in the region. since February 2023 It requires special approval and licensing.
Dubai continues its regulations and incentives for companies to create a regional cryptocurrency ecosystem. In this year Solana Foundation Announced that it opened an office in Dubai and opened a cryptocurrency exchange Crypto.comTo operate in Dubai VARA license He announced that he had received it.