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Klumi Ventures Becomes First Web3 VC Firm to Receive UAE License

Abu Dhabi Web3 VC firm Klumi Ventures has received a license from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM)

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Abu Dhabi firm Klumi Ventures has become the first Web3 VC to earn a UAE license.

The firm received the license from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).

Its new license enables the firm to invest in tokens as well as equity investments in early-stage Web3 startups in the region.

"With ADGM's support and the dynamic ecosystem in Abu Dhabi, we are dedicated to unlocking new avenues of growth and opportunity for Web3 startups", said Kristiina Lumeste, senior executive officer of Klumi Ventures.

Klumi Ventures will launch two funds: the $15 Million Qualified Investors Fund and the flagship $100 Million fund. The former is designed for pre-seed and seed investments for early-stage Web3 startups while the latter focuses on emerging technologies and decentralized sectors.

"Abu Dhabi's status as a global leading city and the 'Capital of Capital' presents unparalleled opportunities for growth and innovation in the digital asset space," Lumeste stated.

Arvind Ramamurthy, chief of market development at ADGM, said Klumi has "immense potential in this sector, not only in Abu Dhabi but also throughout the region."

Since May 2023, 96 fund and asset management firms and funds have registered and operated in ADGM.

In early 2024, the Abu Dhabi financial free zone hub, ADGM and its regulatory body the FSRA (Financial Services Regulatory Authority) published a plan to develop a regulatory framework for DeFi activities in 2024.

“The current focus for the FSRA has been on admitting decentralized finance (DeFi) solutions to the RegLab so that it can learn from the experiences of these companies and thereby take steps to develop a suitable regulatory framework for DeFi activities,” the paper stated.

Abu Dhabi has become an increasingly popular spot for the crypto industry. Just last week, Singapore-based crypto asset manager and market maker QCP said it was strategically choosing Abu Dhabi as its launchpad.

QCP Sets Sights on Middle East Expansion with Abu Dhabi Hub
This move comes amid Abu Dhabi’s growing prominence as a hub for institutional crypto activity.

As part of its expansion plans, QCP will establish an office in Abu Dhabi. This venture is fueled by a partnership with Further Ventures, a local firm specializing in blockchain technology. The collaboration aims to develop innovative digital asset financial products, catering to the burgeoning demand in the region.