Hong Kong-based digital assets firm Animoca Brands announced Monday it has received in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of ADGM, the international financial center of Abu Dhabi, the Capital of the United Arab Emirates (UAE), to operate as a regulated Fund Manager.

Animoca Brands said in a statement that subject to the fulfillment of conditions and final regulatory approval, the firm will be authorized to carry out the activity of Managing a Collective Investment Fund in or from the ADGM.

According to the statement, Animoca Brands is in a process of expansion in the Middle East, where it already has a presence in Dubai to support Web3 activity in the region.

Thus, the IPA announced on Monday marks a step forward in Animoca Brands’ strategy of building up its institutional capabilities and regulated footprint around the world, subject to applicable local approvals and licenses.

“The UAE is a growing hub for activity in Web3 and digital assets. This in-principle approval supports our regional strategy to build regulated, institutional pathways for participation while continuing to partner with founders and enterprises across the ecosystem,” said Omar Elassar, Managing Director for Middle East and Head of Global Strategic Partnerships at Animoca Brands.

Arvind Ramaurthy, Chief Market Development Officer, ADGM said this achievement reflects Animoca Brands’ commitment to operating within ADGM’s dynamic ecosystem.

“ADGM is dedicated to enabling businesses like Animoca to advance the adoption of blockchain and digital assets within a trusted, transparent, and well-regulated environment,” he added.

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