• Animoca Brands secures in-principle approval from Abu Dhabi’s FSRA to manage a fund in ADGM.
• Abu Dhabi’s strict approval process leads Animoca toward fully regulated operations in Web3.
• Animoca Brands eyes public market return with Nasdaq merger, aiming for $1B valuation.

Animoca Brands, a Hong Kong Web3 investment leader, has reported that it has been given in-principle authorization by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi. This license marks a key step for Animoca to become a regulated fund manager in Abu Dhabi Global Market (ADGM).

The license opens the path of Animoca Brands in operating a collective investment fund in ADGM, as soon as it fulfills certain other requirements set by the regulators. Its investments in gaming, NFTs, and digital assets will have a regulatory base, allowing the firm to establish a more institutionalized business in the Middle East.

UAE Web3 Growth Fuels Animoca’s Expansion

The decision to acquire this permission is a continuation of the steps that should enable Animoca to become a major player in the Web3 and digital asset ecosystem. Animoca now possesses more than 600 companies under its possession and with various sectors spread globally, this regulatory trend signifies a transition towards institutional fund management in the Middle East.

Omar Elassar, the managing director of Animoca Brands in the Middle East, stated that the increasing Web3 ecosystem in the UAE will support the long-term strategy of the company. He stressed that such acceptance would assist Animoca in assisting founders and enterprises in the area further and that institutional gateways could be provided to invest in Web3.

Abu Dhabi’s Strict Approval Process for Animoca

Abu Dhabi is strict in the process of getting full operational approval. A rigorous process of review of the companies has to preclude submissions of the regulatory plans, ownership, financial projections, and the anti-money laundering frameworks in detail before the companies are allowed to commence operations.

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The in-principle approval does not guarantee the end as the company is now required to fulfill various conditions to proceed. This would entail fulfilling minimum capital requirements, acquiring residence visas on key staff members, and conducting third-party audits. 

The move of Animoca Brands into Abu Dhabi is welcomed at the time when the UAE is paying much attention to developing the regulatory environment of blockchain and digital assets. The FSRA has already indicated that it wants to establish a safe, transparent space that will attract international digital asset businesses. 

The endorsement is also in line with the overall direction of Animoca to enter key international markets, especially those with great potential in Web3 innovation. The company already has a presence in Dubai but, in the context of the increasing demand of the blockchain-related services in the UAE, it is still developed to implement the regional strategy.

Although the approval is a significant milestone, allows the Animoca Brands to also seek a re-entry into the public market.  Animoca has signed a non-binding contract with Nasdaq-listed Currenc Group. It is a deal that will see Animoca trade back to the market after it was delisted on the Australian Securities Exchange in 2020 over governance reasons, with a valuation of up to $1 billion.

Law Cryptocurrency companies in Abu Dhabi do not have the right to start operating right after obtaining in-principle permission. Rather, they have to carry out the discussions on pre-application and provide elaborate schemes detailing their business models. It is only upon fulfillment of these checks that the FSRA can serve out the green light to proceed with complete regulatory conferred.

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