Hong Kong-based Web3 giant Animoca Brands has secured in-principle approval from Abu Dhabi's financial regulator, marking a significant milestone in its expansion strategy. The provisional green light positions the company to operate as a regulated fund manager in one of the Middle East's most crypto-friendly jurisdictions, opening doors to institutional capital.
Animoca Brands, the Hong Kong-headquartered Web3 and gaming powerhouse, has received provisional approval from Abu Dhabi's Financial Services Regulatory Authority (FSRA), signaling a major advancement in its institutional ambitions and regional expansion plans.
The in-principle approval represents a critical step toward Animoca establishing itself as a regulated fund manager within Abu Dhabi Global Market (ADGM), the emirate's international financial center. This regulatory milestone will enable the company to tap into institutional capital markets and offer regulated investment vehicles focused on blockchain gaming, digital assets, and Web3 infrastructure.
Animoca Brands has built an impressive portfolio spanning blockchain gaming, NFTs, and metaverse projects, with investments in over 450 Web3 companies. The firm's ecosystem includes popular brands like The Sandbox, Mocaverse, and numerous play-to-earn gaming platforms. Securing regulated status in Abu Dhabi represents a strategic pivot toward institutional legitimacy at a time when regulatory clarity remains elusive in many major markets.
The United Arab Emirates, and Abu Dhabi in particular, has emerged as a leading hub for cryptocurrency and blockchain innovation in recent years. The ADGM has actively courted digital asset firms with clear regulatory frameworks, positioning itself as an attractive alternative to more restrictive jurisdictions. This proactive approach has attracted numerous high-profile crypto companies seeking operational certainty and access to Middle Eastern capital.
For Animoca Brands, the Abu Dhabi approval comes at a pivotal moment. The company has been exploring various fundraising and expansion opportunities following the crypto market downturn that impacted valuations across the sector. Operating as a regulated entity could significantly enhance its credibility with institutional investors, sovereign wealth funds, and traditional finance players increasingly interested in blockchain exposure.
While the approval is still provisional and subject to final regulatory requirements, it demonstrates Abu Dhabi's commitment to attracting leading Web3 companies and Animoca's determination to establish compliant operational frameworks. The move could set a precedent for other major crypto firms seeking regulated pathways to institutional markets.
As regulatory landscapes continue evolving globally, Animoca's strategic positioning in the UAE may prove prescient, offering a template for how Web3 companies can bridge the gap between decentralized innovation and traditional financial regulation.