Karm partners with ScaleCompliance to expand crypto services in the UAE

Dubai-based legal advisory firm Karm has partnered with ScaleCompliance, a European crypto compliance specialist that recently expanded into the UAE.

Founded in 2018 by Kokila Alagh, Karm specializes in helping clients understand and navigate the legal complexities of emerging technologies, including artificial intelligence, fintech, blockchain, cybersecurity, robo advisory, and medtech.

Partnering with ScaleCompliance, “we can now complement our business with crypto expertise,” said Alagh, who also is the founder of the MENA Fintech Association.

Together, the two firms have the capabilities to advise companies on how they can integrate crypto offerings into their operations in a compliant manner. Using ScaleCompliance’s software platform, they can monitor compliance – among others through verifications of onboarding and KYC/AML processes, and crypto wallet and transaction screening services.

Originally from Switzerland, ScaleCompliance formally launched in the UAE last month after the firm received the Distributed Ledger Technology (DLT) Service License from the regulator. The start-up (its founding team however has decades of experience in the field) has already started serving clients within the Dubai Multi Commodities Centre (DMCC) ecosystem.

“Joining efforts and experiences is adding value to the ecosystem that has been growing at a rapid pace in DMCC,” said James Bernard, Regional Representative Europe at DMCC. “The partnership between Karm and ScaleCompliance will help strengthen and grow the blockchain and crypto ecosystem in the UAE and the region.”

The announcement comes at a time of booming interest in crypto services. Now valued at around $2 trillion, consumers from all corners of the globe are turning to crypto assets for a variety of reasons, including the perception of holding a lucrative investment or more simply, the ‘fear of missing out’. According to recent research from Triple A, 1.54% of the UAE’s population today owns crypto.

“The UAE is one of the leading blockchain and crypto assets hubs. As such, the ecosystem requires highly developed compliance solutions and services. The new partnership will ensure that the growth of the crypto ecosystem will be complemented with the protection of users and institutions,” said Alagh.

Karin Lorez, Founding Partner at ScaleCompliance, noted: “We are excited to roll out our crypto compliance services from Switzerland to the UAE. We are looking forward to collaborating with Karm and supporting Dubai’s crypto vision to become a global hotspot and leader for innovative blockchain applications.”

As recently reported, the UAE is formulating a licensing regime for virtual asset service providers to formalize the crypto economy and become a global industry hub. According to Bloomberg, the UAE government officials are readying to issue federal licenses for virtual asset service providers (VASP), looking to attract some of the world’s leading crypto companies.