3iQ's United Arab Emirates subsidiary has received in-principle approval for a Category 4 license from Abu Dhabi's financial regulator, the International Financial Centre Authority, according to the company's announcement released October 12.
Category 4 licensing in Abu Dhabi's ADGM framework permits advisory and arrangement services for digital assets, a narrower scope than full custody but a step toward operating across the Middle East's largest financial hubs. The approval is conditional, not final authorization; the firm must still satisfy outstanding regulatory requirements to obtain a full license.
3iQ is a Canada-based digital asset manager and custodian that has built operations across multiple jurisdictions. The firm launched its UAE presence to tap institutional demand in a region where several crypto platforms have established hubs in recent years. Abu Dhabi and Dubai have become competing centers for digital asset licensing, with each regulator setting separate frameworks and approval tiers.
The in-principle status means 3iQ can now operate under the ADGM license while completing final compliance steps. The firm did not specify a timeline for full authorization. Abu Dhabi's ADGM has approved licenses for other digital asset firms, though the pace of new entrants has slowed as regulators worldwide tightened scrutiny of crypto platforms following the collapse of FTX in 2022.
3iQ's move into Abu Dhabi comes as Canadian digital asset managers face domestic regulatory uncertainty. Canada's federal government has not finalized permanent licensing rules for crypto firms, leaving many operators to pursue offshore expansion and international licensing as a diversification strategy. The firm's Canadian operations remain its primary business.
The in-principle approval represents 3iQ's first material regulatory win in the Gulf Cooperation Council region. If the firm completes all outstanding conditions within the typical 90-to-180-day window that ADGM typically allows, it would be positioned to serve institutional clients across Abu Dhabi and potentially gain a platform for broader Middle Eastern expansion.
The document to watch is 3iQ's formal conversion of this in-principle approval to a full Category 4 license, which the regulator must issue within the ADGM's stated approval window.
