IB DIGITAL TECH (01782) announced that its non-wholly owned subsidiary in the United Arab Emirates (UAE), IBDT OPERATING VIRTUAL ASSET PLATFORM—L.L.C (IBDT Platform), has officially received a no-objection letter issued by the UAE's federal-level regulatory authority—the Securities and Commodities Authority (SCA). This letter constitutes preliminary approval for incorporating three core businesses into IBDT Platform's commercial license scope: virtual asset brokers, virtual asset custodians, and virtual asset platform operators.

As of the announcement date, IBDT Platform is 90% owned by the company, with the remaining 10% held by an independent third party. IBDT Platform's financial performance will be consolidated into the company's consolidated financial statements.

The SCA, as UAE's federal-level regulatory authority, has jurisdiction across the entire UAE territory and serves as the country's supreme regulatory body for virtual assets and securities. Since SCA began issuing formal licenses to virtual asset service providers in June 2025, the number of licenses remains limited.

The Board of Directors believes that receiving this preliminary approval from SCA represents an important milestone for the Group's strategy to build an Asia-Middle East digital finance ecosystem with Hong Kong as the hub. The UAE is one of the world's leading fintech centers, and its robust regulatory framework will provide a solid compliance foundation for the Group's future cryptocurrency and virtual asset business development.

This preliminary approval for SCA's "three-in-one" license not only demonstrates that the Group's high standards in compliance, technology, and operations have gained recognition from UAE's national-level regulatory authority, but will also provide the Group with unique strategic advantages in offering comprehensive cryptocurrency services in the vast UAE and Middle East markets.

Upon meeting all applicable regulatory requirements and obtaining formal licenses for the aforementioned businesses, IBDT Platform will be qualified to provide related services to institutional and individual clients in the UAE. The Group plans to leverage this development opportunity to focus on expanding digital asset trading, custody, and management services, while actively developing cross-border settlement and payment solutions for the real economy, thereby further enhancing the Group's service capabilities in the global digital finance ecosystem.

Furthermore, upon obtaining formal licenses and fully complying with SCA regulatory requirements, the Group also plans to actively deploy in tokenized assets (TA), entering tokenized asset trading (TAT) and tokenized collateral network (TCN), and exploring the integration of artificial intelligence (AI) technology with TA to enhance asset pricing efficiency, risk management capabilities, and liquidity optimization levels. The ultimate goal is to become an AI+TA digital asset service provider that integrates trading, custody, investment research, settlement, and compliance.

The Board of Directors believes that these initiatives will not only help promote deep integration between traditional finance and virtual asset markets, but will also help strengthen the Group's comprehensive competitiveness in international digital finance and virtual asset markets, creating long-term value for shareholders.