A spokesman for the Dubai Financial Services Authority (DFSA) confirmed that the troubled VC firm Three Arrows Capital (3AC) was not registered in the region.
“We can confirm that Three Arrows Capital is not a DFSA authorized firm and is not regulated by DFSA,” said a DFSA spokesperson in an email to CoinDesk.
- This information contradicts the claims of Su Zhu, co-founder of 3AC in April, that the firm will be relocating to Dubai. He said the firm will launch a $5 billion fund in the city, which has a more welcoming regulatory environment than Singapore.
- After announcing its Virtual Asset Regulatory Authority this March, Dubai is slowly opening itself up to the crypto industry. Several developments are now taking place from the city, including a local school that accepts tuition payments in bitcoin and ethereum.
- In Singapore, firms such as 3AC are regulated by the Monetary Authority of Singapore (MAS). In order to conduct services at the Dubai International Financial Centre, they must be observed by the DFSA, as confirmed by the regulator’s website.
- MAS’s chief fintech officer said this month that it would be “brutal and incredibly difficult” for bad actors to be in the crypto space.
- This month 3AC liquidated several leveraged positions amid the collapse of the crypto market. The infection from its collapse is now spreading to other firms, and Zhu has said that 3AC may later seek asset sales and bailout options.
- Even outside DIFC, it seems that 3AC is not registered anywhere in the city. The National Economic Register of Dubai does not show any companies matching the VC firm’s description.
- Nevertheless, Zhu’s Twitter location indicates that he is currently in Dubai.
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