CFI Financial Group (CFI) has announced that its Dubai-based entity, CFIX Virtual Assets Broker & Dealer Services L.L.C.S.O.C (CFIX), has received In-Principle Approval (IPA) from the Virtual Assets Regulatory Authority (VARA) for broker-dealer services. This approval marks a pivotal step in CFI’s strategy to expand into the virtual assets sector, moving beyond traditional trading and investment services.
The IPA brings CFIX closer to obtaining a full Virtual Asset Service Provider (VASP) licence, contingent upon meeting VARA’s remaining regulatory requirements. This development aligns with CFI’s broader international growth strategy, which includes recent regulatory authorisations in Brazil, a launch in Colombia, and expansion into Bahrain. The Group emphasizes regulated market entry and local operational capabilities as key components of its international operations.
Strategic Expansion into Virtual Assets
CFIX is being established as a separate legal entity with an independent governance framework, operational infrastructure, and regulatory controls tailored for the virtual assets market. Ziad Melhem, CEO of CFI Financial Group, highlighted the significance of this approval, stating, “Receiving VARA’s In-Principle Approval is an important milestone, and reflects the progress made in establishing CFIX.” He further noted that the UAE is pivotal in shaping the future of the virtual asset industry, with Dubai’s regulatory environment providing a robust foundation for growth.
CFIX aims to leverage CFI’s extensive experience in financial markets, which spans over 25 years and includes operations across 15 regulated entities. This move is also part of CFI’s efforts to enhance corporate governance, including the appointment of independent Board members and an independent Chairman.
Next Steps and Regulatory Compliance
Under VARA’s regulatory framework, the In-Principle Approval is an intermediate stage in the licensing process and does not permit the entity to commence virtual asset services. CFIX will now concentrate on fulfilling the remaining licensing conditions, which include finalizing leadership appointments, establishing operational infrastructure, and ensuring compliance with regulatory controls. The company has confirmed that it will not initiate virtual asset services until it secures its full VASP licence from VARA.
This development underscores the UAE’s commitment to fostering a regulated environment for virtual assets, positioning Dubai as a key player in the global digital economy. As CFI moves forward, the focus will remain on building a sustainable business model designed for long-term success in the evolving virtual asset landscape.
For further details, refer to the original report by TahawulTech.
