Crypto Staking Specialist Northstake Plans Expansion to UAE

According to Blockworks, Northstake, a Denmark-based crypto staking specialist, is planning to expand its operations to the United Arab Emirates (UAE). The company has received initial approval from Dubai’s Virtual Asset Regulatory Authority (VARA), marking the first step towards obtaining a Virtual Asset Service Provider (VASP) license. This license will enable Northstake to offer crypto custody services, including custodial staking, to institutional investors in the UAE. The company views the UAE as a strategic base for exploring further expansion opportunities. Northstake CEO, Jesper Johansen, stated that the UAE is emerging as a global leader in virtual assets. The interest of crypto firms in Dubai has increased since the establishment of VARA in March 2022, a move that industry executives believe encourages innovation in the sector. Johansen expressed Northstake's ambition to contribute to the growth of the UAE's crypto ecosystem by leveraging their expertise in digital asset investments to support the region's financial institutions and local partners. Institutional investments, those exceeding $1 million in value, accounted for approximately two-thirds of crypto transactions in the UAE between July 2022 and June 2023, as per a report by Chainalysis in September. Kim Grauer, Chainalysis’ research director, stated that this market confidence validates the efforts of the country's leadership to provide regulatory clarity and establish the UAE as a global crypto hub. Northstake is not the only crypto company seeking to establish a presence in the region. Crypto custodian Komainu received a full VASP license in August, and Laser Digital, the crypto unit of Japanese bank Nomura, also secured a full crypto license from Dubai’s VARA in the same month. M2 Exchange also gained the ability to offer custody and multilateral trading services for UAE residents around that time. Northstake's move to the UAE comes nearly a year after the company raised about $3 million to enhance its staking products for institutions. The company, which operates a multi-chain platform offering yield-generating products, partnered with Coinify in August to serve the firm’s institutional and high net worth clients.