Three Arrows Capital is not Registered Here, Says Dubai Regulator
- Three Arrows Capital is subject to the Monetary Authority of Singapore regulation in Singapore.
- Despite declared plans, the troubled crypto fund has not opened shop in the emirate, according to the Dubai Financial Services Authority.
- Accountants with knowledge in the area claim that it just takes four to five working days to establish a corporation in Dubai.
Su Zhu of Three Arrows Capital said that his company’s headquarters will be moving to Dubai in order to open a new $5 billion fund in the prelapsarian days of April. This move comes as a result of the friendlier regulatory environment in Dubai than what is present in Singapore.
Three Arrows Capital, a cryptocurrency hedge fund, is not currently authorized by the DFSA to operate in Dubai, according to a spokesperson for the regulator.
This comes despite the fact that Three Arrows Capital claimed that it was moving its operations from Singapore to Dubai. At the time, The Block reported that the move was due to “regulatory headwinds” in Singapore.
However, it appears that Three Arrows Capital has not followed through on its plans to relocate to Dubai. The DFSA spokesperson said that the authority has “not received any applications from [Three Arrows Capital] for authorization.”
It is not clear why Three Arrows Capital has not applied for authorization from the DFSA. However, given the regulatory uncertainty surrounding cryptocurrencies, it is possible that the hedge fund is still waiting for clarification on how its activities would be regulated in Dubai before formally applying for approval.
So far, it appears that Three Arrows Capital has not taken any major steps to establish a physical presence in Dubai. This is surprising, given that the firm has been vocal about its intention to expand its operations into the emirate. It is possible that Three Arrows is still in the early stages of setting up an office in Dubai, and more details may emerge in the coming months. In the meantime, it will be interesting to see if this apparent lack of progress affects the firm’s ability to attract and retain investors.
According to accountants with experience in setting up companies in Dubai, the process can be completed in as little as four to five working days. This includes obtaining the necessary licenses and permits, opening a corporate bank account, and completing any other required paperwork. Given that Blackstone announced its intention to establish a presence in Dubai only last month, it appears that the fund has made significant progress in setting up its new office.
The Business Environment in the United Arab Emirates
The UAE is an attractive destination for businesses due to its political stability, pro-business policies, and strategic location. In addition, the country boasts a highly educated workforce and world-class infrastructure. These factors have contributed to making Dubai one of the most dynamic and prosperous cities in the world.
The crypto industry is booming in Dubai, with new projects and startups popping up left and right. Zhu’s claim to move to the city was spurred by the electric energy that surrounds the digital asset industry here. He was also impressed with the vision of the Dubai Virtual Assets Regulatory Authority.