Animoca Brands Gets In-Principle Approval to Operate in Abu Dhabi

TLDR

• Animoca Brands received in-principle approval from Abu Dhabi’s Financial Services Regulatory Authority.
• The approval paves the way for Animoca to manage a collective investment fund in the Abu Dhabi Global Market.
• The company aims to strengthen its institutional presence in the Middle East’s growing digital asset market.
• Animoca Brands is working to meet all conditions for full regulatory approval and licensing.
• The company has partnered with more than 600 portfolio companies in the Web3 and digital asset sectors.

Animoca Brands has secured in-principle approval from Abu Dhabi’s Financial Services Regulatory Authority (FSRA). This approval is a major step for the Hong Kong-based company toward operating as a regulated fund manager. Once all conditions are met and final approval is granted, Animoca will be able to manage a collective investment fund within the Abu Dhabi Global Market (ADGM).

Animoca Brands has long been involved in the Web3 space, including gaming, NFTs, and digital assets. This approval allows the company to deepen its presence in the Middle East, strengthening its strategy. The decision opens a path for the company to build a regulated footprint in the region.

Move to Strengthen Institutional Presence in the Middle East

This new regulatory approval strengthens Animoca Brands’ strategy to operate within a structured, institutional framework. The company already works with more than 600 portfolio companies, providing investment management services. The approval helps Animoca continue to grow its Web3 business in the Middle East while adhering to the region’s regulatory standards.

Omar Elassar, managing director for the Middle East at Animoca Brands, expressed the importance of this development. He said, “The UAE is a growing hub for activity in Web3 and digital assets.” Elassar added that the approval aligns with their regional strategy to build regulated pathways for institutional participation.

Animoca Brands has established a presence in Dubai, supporting the growing Web3 sector. The Abu Dhabi approval further propels the company’s expansion into regulated markets, including through new capital formation and fund structures. The company is actively working on the final steps to obtain its full license.

Meeting Regulatory Conditions for Full Authorization

Despite the in-principle approval, Animoca Brands must fulfill specific conditions to move toward full authorization. These include submitting a regulatory business plan, financial projections, and ensuring compliance with anti-money laundering regulations. The FSRA will also conduct a thorough review of the company’s technology, custody arrangements, and senior executives.

Once Animoca meets these conditions, the company will be able to apply for a full Financial Services Permission. This will allow Animoca to incorporate in ADGM, obtain a commercial license, and begin regulated activities such as trading, custody, and advisory services for virtual assets.

The FSRA’s approval comes with a list of requirements, including ensuring base capital thresholds and obtaining residence visas for key staff. The regulatory body aims to attract digital asset companies to the region by providing a controlled, transparent environment. Once Animoca Brands satisfies these requirements, it will be positioned to operate fully within the ADGM.

Animoca Brands Plans $1 Billion Reverse Merger

Alongside its regulatory expansion, Animoca Brands is moving closer to returning to public markets. The company has entered into a non-binding agreement with Nasdaq-listed Currenc Group. This reverse merger aims for a valuation of around $1 billion, with a closing expected by the end of 2026.

If the merger proceeds as planned, Animoca’s shareholders would hold approximately 95% of the combined company’s shares. The proposed deal signals Animoca’s commitment to growth in both the regulatory and financial sectors. After being delisted from the Australian Securities Exchange in 2020, the company is now positioning itself for a return to the global stage.

In Abu Dhabi, crypto firms must fulfill strict regulatory requirements before they can begin operations. This process is designed to ensure companies meet the high standards required to operate within the region’s growing digital asset ecosystem. Animoca Brands is well-positioned to meet these requirements, enabling a smooth transition to full regulatory status.

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