Animoca Bridges Traditional Finance and Web3 with UAE Approval

Animoca Brands, a Hong Kong-based Web3 investor, has secured in-principle approval (IPA) from Abu Dhabi's Financial Services Regulatory Authority (FSRA), marking a pivotal step toward operating as a regulated fund manager in the UAE's emerging digital asset hub. The approval, while conditional, allows the company to pursue the establishment of a collective investment fund within the Abu Dhabi Global Market (ADGM) once it meets capital, compliance, and operational requirements. This development underscores the firm's strategic push into institutional-grade Web3 and digital asset management, aligning with its broader expansion across the Middle East.

The IPA is part of a broader regulatory framework in ADGM, where crypto firms must first submit detailed business plans and anti-money laundering protocols, and technology infrastructure for review before receiving conditional approval. For Animoca, which has backed over 600 portfolio companies spanning gaming, NFTs, and blockchain, the move strengthens its ability to structure capital-raising efforts under a regulated umbrella. "The UAE is a growing hub for activity in Web3 and digital assets," said Omar Elassar, managing director for the Middle East at Animoca Brands, emphasizing the firm's intent to build "regulated, institutional pathways for participation" in the region.

The approval complements Animoca's parallel efforts to re-enter public markets. Earlier this month, the company agreed to a reverse merger with Nasdaq-listed Currenc Group, targeting a $1 billion valuation with a projected completion by late 2026. If finalized, Animoca shareholders would own 95% of the combined entity, while Currenc stakeholders would retain a 5% stake. The deal would represent a comeback for Animoca after its delisting from the Australian Securities Exchange in 2020 due to governance concerns tied to its crypto activities.

ADGM's regulatory approach reflects a broader industry trend of balancing innovation with oversight. The IPA process requires firms to satisfy conditions such as securing minimum capital, obtaining residency visas for key personnel, and completing third-party audits before transitioning to a full financial services license. Once these milestones are met, companies can legally operate within ADGM, offering services like trading, custody, and advisory solutions for virtual assets.

The UAE's regulatory environment has increasingly attracted blockchain firms seeking structured markets. Animoca's presence in Dubai, coupled with its Abu Dhabi ambitions, highlights the country's growing role as a bridge between traditional finance and Web3. With institutional demand for regulated digital asset custody rising globally, such developments could accelerate mainstream adoption and foster innovation in the sector.