The vault at DMCC is one of the most secure precious metal facilities in the world and will store all crypto investments in a physical form.
Regal RA DMCC, a gold investment and trading firm in Dubai, is the first company in the Middle East to receive a license to trade cryptocurrencies, the Dubai Multi Commodities Centre said.
The company said it launched the world's first “deep cold storage” solution, which allows investors and traders to store their digital currencies - bitcoin, ethereum and other altcoins - in a vault located in Dubai's Almas Tower, the headquarters of free zone DMCC.
“We have developed what we believe is the number one most secure way of investing in bitcoin, ethereum and other crypto-commodities,” Tyler Gallagher, chief executive of Regal Assets, which owns Regal RA, said in a statement on Tuesday.
The vault at DMCC is one of the most secure precious metal facilities in the world and will store all crypto investments in a physical form – without connection to a network – alongside the company’s current stock of physical gold.
Investors globally are seeing the potential in digital currencies, however, they are "reluctant to store large amounts of coins in online wallets and exchanges due to the high risk of hacking, identity theft, malware and other issues that can literally obliterate an investment", Mr Gallagher noted.
Last month, hackers stole about $530m worth of cryptocurrency from the Coincheck exchange in Japan - one of the biggest such heists ever. However, all the physical devices in Dubai are fully insured for the crypto-commodities market value against theft, hacking or natural disaster.
"This is a necessity more than us being creative. We have taken the approach of not putting at risk our money as well as our customers’ money," Ksenia Kiseleva, Regal RA manager of the firm's Dubai office told The National. "We take that [online fraud] possibility out of the equation by offering the cold storage facility. It just put minds at ease.”