Nexon to launch Abu Dhabi base in earnest next year… Kaia and Neofin also accelerate localization

The major domestic blockchain companies are rushing to expand into Abu Dhabi, United Arab Emirates (UAE). The strategy is to use Abu Dhabi, which provides a relatively crypto-friendly regulatory framework, as a base to target the global market. According to the industry on the 18th, Nexon's blockchain subsidiary Nexplay plans to open an independent office in Abu Dhabi from next year. A Nexplay official who met with Decenter in Abu Dhabi on the 10th said, "We plan to significantly expand our development workforce along with the relocation of the independent office in January 2025." Nexplay has already started moving personnel this year, and as of this month, about 10 people are working in Abu Dhabi. They are currently using a shared office, but plan to secure an independent office to coincide with the official launch of the Maplestory Universe and embark on full-fledged localization. Kaia, the operator of the integrated mainnet of Kakao (Klaytn) and Line (Finsha), completed the DLT Foundation registration in the Abu Dhabi Global Market (ADGM) in August this year. ADGM is the international financial center of Abu Dhabi, a financial free zone with independent jurisdiction and regulatory system. Kaia is considering additional personnel dispatch to Abu Dhabi depending on business conditions. A foundation official said, "Existing Klaytn-related companies in Singapore have no plans to expand further, and future expansion will be carried out in Abu Dhabi." The key reason these companies chose Abu Dhabi is the high regulatory autonomy. In particular, the DLT Foundation system introduced last year is favorable for virtual asset issuance companies. By being recognized as a corporation in ADGM and operating as an independent legal entity, they can enjoy various benefits. The tax benefits for virtual asset investment are also attractive. The Kaia Foundation official said, "In Singapore, if you issue virtual assets and receive investment, it is treated as a sales act, so taxes such as VAT are applied. On the other hand, Abu Dhabi recognizes it as an investment and does not impose separate taxes." The ability for foreign companies to participate in the establishment of local regulations is also an advantage. NeoFin, a blockchain company of the Neowiz Group, is participating in the establishment of the DeFi service regulatory framework of ADGM. The active support of the Abu Dhabi Investment Office (ADIO), the largest investment agency in the UAE, also played a role. ADIO supports companies in various areas, from local incorporation to networking and innovation program selection. An industry official predicted that "Abu Dhabi, which has a favorable regulatory environment, full government support, and strategic location, will emerge as a global blockchain hub. If the technological prowess of Korean companies and the infrastructure of Abu Dhabi create synergy, it can achieve meaningful results."