- Three Arrows Capital is not a DFSA-approved business, a DFSA spokesman informed a news outlet.
- Su Zhu, CEO of Three Arrows Capital, said in early April that his business would move to Dubai to construct a $5 billion fund.
- Three Arrows Capital reported huge market-related losses last Friday. The firm claims it has hired legal and financial advisers to help it.
A spokesman for the Dubai Financial Services Authority informed CoinDesk in an email that they can confirm that beleaguered cryptocurrency fund Three Arrows Capital is not a DFSA-approved entity and that they are not subject to regulation by the DFSA.
This comes after Su Zhu, the CEO of Three Arrows Capital, said in the early days of April that his company’s headquarters will be relocating to Dubai to build a new $5 billion fund. He gave the reason that Dubai has a more business-friendly regulatory climate than Singapore, where the company is regulated by the Monetary Authority of Singapore.
According to the website of the regulatory agency, for entities to be able to provide financial services within or from the Dubai International Financial Centre (DIFC), which is a purpose-built financial free trade zone, they are required to seek authorization from the Dubai Financial Services Authority (DFSA).
It added that Three Arrows has no outside entities. No firm matching Three Arrows Capital’s description is listed in Dubai’s national economic registry, however, there is a “Three Arrows” air conditioning company.
In related news, according to a report from the Wall Street Journal (WSJ), Three Arrows Capital (3AC) revealed one week ago Friday that it had experienced huge losses as a result of the current market slump. The company also said that it had employed legal and financial consultants to seek out a way out of its predicament.
Co-founder Kyle Davies of 3AC told the WSJ that the company is dedicated to finding a solution that benefits all its stakeholders equally. As of April, the fund has more than $3 billion in cryptocurrencies under its control.