MidChains Resurfaces Under VARA After ADGM Chapter

MidChains, one of the UAE’s earliest regulated virtual asset exchanges, has resurfaced in Dubai under the Virtual Assets Regulatory Authority (VARA) following the conclusion of its Abu Dhabi Global Market (ADGM) chapter.

According to the VARA public register, Midchains FZE received a Virtual Asset Service Provider (VASP) license on April 29, 2025, authorizing the company to provide Broker-Dealer Services. The license permits activity with Institutional and Qualified Investors only, with the entity registered at the Dubai World Trade Centre.

From ADGM to VARA

MidChains was originally incorporated in ADGM on December 19, 2019 as MidChains Limited. On March 4, 2025, the entity officially changed its name to Ousoul Assets Custodian and Trading Facilities Limited. The company remains licensed in ADGM until December 2025.

Just weeks earlier, on February 14, 2025, new directors were appointed and co-founder Basil Al Askari stepped down from the board. The change signaled a shift in ownership and control of the ADGM entity.

In a statement to Unlock on April 25, 2025, Al Askari confirmed: “We have monetized our ADGM regulated entity, we are grateful for the support from the FSRA and ADGM over the last 6 years. MidChains is excited for our next chapter with our move to onshore business, stay tuned for announcements soon.”

Ousoul in ADGM

Following the rebrand, Ousoul Assets Custodian and Trading Facilities Limited continues as a licensed entity in ADGM under new ownership. The current directors, all appointed in early 2025, are:

Mohammed Alshaiba Saleh Ghannam Almazrouei
Thamseer Vaniyam Veettil
Tamlyn Ross Ludford
(Almo’tasem Bellah) Moh’d J. Alahmad
Poul Kirstejn Goetterup

The entity’s license and data protection registration remain valid until December 18, 2025.

MidChains in Dubai

Separately, the MidChains brand has re-emerged in Dubai through Midchains FZE, which obtained its VARA license in April 2025. The Dubai-based entity represents the continuation of the MidChains name under a new regulatory framework, focused exclusively on Institutional and Qualified Investors.

ADGM and VARA: Different Roles

In ADGM, licensed exchanges have taken different paths. Matrix remains on the register but appears largely dormant, while M2 has recently pivoted its strategy toward serving ultra-high-net-worth and institutional clients. BurjX, the newest licensee, is already live with brokerage and custody services, positioning itself as a key player to watch. While ADGM has been pivotal in shaping the UAE’s regulatory credibility and attracting institutional players, exchange operations there have not scaled at the same pace as Dubai. Several firms in ADGM have since pivoted toward custody and wealth-focused services, while Dubai’s onshore framework under VARA has emerged as the more visible hub for active trading. Rather than a weakness, this reflects the complementary roles of the two jurisdictions — with ADGM anchoring institutional trust and compliance, and VARA driving market activity and ecosystem growth.

A Split Legacy

With these developments, MidChains’ trajectory has effectively branched into two paths:

Ousoul in ADGM, operating under new ownership and identity.
Midchains FZE in Dubai, carrying the MidChains brand forward under VARA.

This restructuring mirrors wider market dynamics. Global exchanges such as Binance have also structured themselves across both jurisdictions — maintaining custody and institutional services in ADGM while operating trading under VARA in Dubai. In the case of MidChains, however, the shift represents a clean transition: a monetized ADGM entity continuing as Ousoul, and a renewed MidChains presence anchored in Dubai’s onshore ecosystem.