Animoca Brands Wins Provisional Approval From Abu Dhabi’s Financial Regulator

What Happened

The Hong Kong-based Web3 investor said the approval from the Financial Services Regulatory Authority would allow it, once conditions are met and final sign-off is granted, to manage a collective investment fund in or from the ADGM.

Animoca Brands describes itself as a digital asset advisory services and an investment management arm that now backs more than 600 portfolio companies. The in-principle approval strengthens that strategy by giving the firm a clearer regulatory footing for capital formation and fund structures.

Omar Elassar, managing director for the Middle East and head of global strategic partnerships at Animoca Brands, said, “The UAE is a growing hub for activity in Web3 and digital assets. This in-principle approval supports our regional strategy to build regulated, institutional pathways for participation while continuing to partner with founders and enterprises across the ecosystem.”

Market Context

The company has been steadily expanding in the Middle East and already maintains a presence in Dubai to support Web3 activity across the region. The Abu Dhabi decision, while still conditional, advances its plan to build a regulated footprint in key markets, subject to local licences and approvals.

Animoca Brands is pursuing its regulatory buildout alongside a return to public markets. Earlier this month, it entered into a non-binding agreement with Nasdaq-listed Currenc Group to pursue a reverse merger that targets a valuation of about $1b, with closing expected by the end of 2026.

The proposed deal would mark Animoca’s comeback to public markets after it was delisted from the Australian Securities Exchange in 2020 amid governance concerns and its involvement in crypto-related activities.

Firms Must Meet Capital And Operational Conditions To Move Beyond IPA Status

The IPA comes with a list of requirements, such as meeting base capital thresholds, finalizing systems, obtaining residence visas for key personnel and lining up third-party audits.

That final licence allows the company to incorporate within ADGM, secure a commercial licence and begin regulated activities such as trading, custody or advisory services for virtual assets. Well-prepared applicants typically move through the full process within a few months.

Why It Matters

Animoca Brands said Monday that it secured in-principle approval from Abu Dhabi’s financial regulator, taking a key step toward operating as a regulated fund manager in one of the Middle East’s most active digital asset hubs.

For a company that has long positioned itself at the intersection of gaming, NFTs and digital assets, the move marks a push deeper into institutional territory.

Details

Middle East Expansion Gains Momentum With Abu Dhabi Regulatory Backing

ADGM officials framed the move as part of their effort to attract more blockchain and digital asset players into a rules-based environment.

If completed on those terms, shareholders of Animoca Brands would own roughly 95% of the combined company’s issued shares, while existing Currenc shareholders would hold about 5%.

In Abu Dhabi, crypto companies cannot simply start operations on the back of an in-principle approval. Firms first engage in pre-application discussions, submit a detailed regulatory business plan, ownership information, financial projections and their anti-money laundering and counter-terrorist financing framework.

The FSRA then reviews technology, custody arrangements and senior staff, including senior executive officers and compliance leaders. Only after those checks does the regulator issue an in-principle approval, which is a conditional green light rather than a licence to operate.

Once a firm satisfies those conditions within the required timeframe and evidences this to the FSRA, it can obtain full Financial Services Permission.

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