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Central Bank of Qatar token regulations excludes crypto and stablecoins

Central Bank of Qatar token regulations excludes crypto and stablecoins

Qatar just announced its digital assets or token regulations. The Central Bank of Qatar, Qatar Financial Authority, as well as the QFC regulatory authority released the regulations that would allow for tokenization of real world assets not including cryptocurrencies or stablecoins. This comes after Qatar had announced its DLT regulations, as well as launched its Digital Assets Lab. Throughout this time Qatar had always made it clear especially through QFC that this pertained to tokenization of real world assets for financial and investment purposes.

On Sunday October 29th, Qatar announced one of the biggest digital assets initiatives in the country and the GCC region, the Qatar Innovation Dome for digital assets. The digital asset lab was aimed to develop tokenization platforms and ecosystems for everything that has value whether tangible assets or intangible assets including real estate assets, securities, Sukuk, bonds and others in the future utilizing DLT ( distributed ledger technologies), blockchain, and smart contracts.

Today the digital asset token regulations has provided the framework to implement this.

The regulations cover all activities related to permitted tokens

As per the framework the regulations apply to tokens meeting the criteria specified which are under permitted tokens. It also covers transactions involving permitted tokens, and the provisioning of these token services. It also covers token custodians, and token exchanges, token transfer providers, token validators as well as token issuers which they call token generators.

Token custody services means the service of holding or controlling tokens on behalf of clients; or holding or controlling the means by which clients’ tokens may be recorded and transacted on token infrastructure. A company that holds or safeguards the private keys for its clients’ tokens is providing custody services in relation to those tokens. An entity licensed to provide token custody services may be referred to as a token custodian.
Qatar regulations also discussed Operating a token exchange which means operating a system which brings together multiple third party buying and selling interests in tokens, in accordance with the system’s non-discretionary rules, in a way that results in a contract in respect of the tokens. As per the regulation a token exchange which operates a facility which is merely an order routing system where buying and selling interests in, or orders for, tokens are merely transmitted but do not interact is not operating a token exchange.

Token is defined as digital representation of real property or rights

As per the regulation a token means a unique electronic data unit that is cryptographically secured. It is a digital representation of real or personal property rights including contractual rights and is capable of being issued, transferred or stored using DLT ( Distributed Ledger technology) or other similar technology.

DLT or blockchain technology will be used to transfer and store the permitted token.

Crypto and stablecoins not included in Digital asset regulation

The new digital asset regulations however are very clear on what they considered as not permitted tokens. In short, non permitted tokens are tokens that do not represent a right in a property. As such cryptocurrencies, and stablecoins are considered not permitted or excluded tokens from this regulation.

As noted in the regulation “ Excluded tokens include a currency that can otherwise be used as a means of payment. Examples: A cryptocurrency token that is used as an alternative to fiat currencies but is not issued or backed by any governmental authority and does not represent any ‘off-chain’ property, is an example of an excluded token.”

It goes on to add, “ A token commonly referred to as a stablecoin, is an example of an excluded token. This is because a stablecoin is regarded as a substitute for currency that can be used as a means of payment.”

Accepted tokens include for example a token representing a right to a commodity, such as a precious metal.

Investment tokens included in regulation

The regulation also allows investment tokens under what it calls tokenized schemes or token investing schemes or tokenized funds.
As per the regulations, “ A QFC scheme, or a sub scheme of a QFC umbrella scheme, is a tokenized scheme if any of the units in the scheme or sub scheme are investment tokens. A QFC scheme, or a sub scheme of a QFC umbrella scheme, is a token investing scheme if the scheme’s, or sub scheme’s, constitutional document states that it is an object of the scheme to invest in tokens.”
The regulation notes that tokenized investment schemes could cover Islamic funds, money market funds, feeder funds or property fund schemes.
In addition the regulation discusses tokenized investment funds and notes that, “ a professional investor fund is a tokenized fund if any of the units in the fund are investment tokens; a token investing fund if the fund’s constitutional document states that it is an object of the fund to invest in tokens.

 H.E. Sheikh Bandar bin Mohammed bin Saoud Al Thani, Qatar Central Bank Governor, stated, “Launching the 2024 Digital Assets Regulations marks a significant milestone in our journey towards realizing the Third Financial Sector Strategy.” He noted that this framework will create significant opportunities and support establishing a robust regulatory environment within the financial sector. This will support Qatar’s digital transformation goals, in line with the Third National Development Strategy, the final phase of the Qatar National Vision 2030.

Yousuf Mohamed Al-Jaida, Chief Executive Officer, QFC, added “The introduction of the Digital Assets Framework 2024 underscores our commitment to creating a robust regulatory regime aligned with international best practices. We are proud to set a blueprint for developing, applying, and operating digital assets, that promotes market trust and confidence. We anticipate that this regulatory clarity will attract both domestic and international players, boosting Qatar’s financial services sector competitiveness.”

Adaverse invests half a million dollars in Saudi Web3 loyalty platform

Adaverse invests half a million dollars in Saudi Web3 loyalty platform

Adaverse, a Web3 venture builder, has invested half a million dollars ($500,000) as a pre-seed investment in Saudi loyalty platform, Mithu, a platform aggregator for restaurants and cafes in Saudi Arabia. 

Mithu aims to solve a critical problem in the loyalty program market, where customers struggle to manage multiple loyalty programs and billions of dollars worth of points expire annually. 

In Saudi Arabia, only 2.5% of restaurants currently offer loyalty programs, leaving a vast untapped market, while globally, about $100 billion worth of loyalty points expire annually. Customers hold an average of 17 loyalty programs, with 68% churning within the first year.

By aggregating loyalty programs into a single, gamified app, Mithu seeks to increase customer engagement and help businesses, particularly SMEs in the food and beverage industry, retain customers more effectively. Founded earlier this year, Mithu has already signed agreements with approximately 200 restaurants in Riyadh. 

“We’re thrilled to have Adaverse on board,” said Mohsin Qureshi, Founder of Mithu. “Their expertise in Web3 and gamification is invaluable as we develop a tokenised version of our app. This investment accelerates our time to market, allowing us to better serve our clients and users.” 

Vincent Li, Founding Partner of Adaverse, said, “We are thrilled to invest in Mithu, whose founding team brings decades of deep experience in the restaurant and retail sectors. The opportunity to disrupt this vertical in Saudi Arabia is enormous, and we’re excited to be part of it. As Adaverse, we bring global expertise in technology, coupled with Web3 knowledge, to support Mithu in developing their cutting-edge solutions. This unique combination of industry insight, technological prowess, and market opportunity positions Mithu for significant success and growth. We look forward to witnessing their impact on the Saudi Arabian market and beyond.” 

Mithu’s founding team offers a depth of expertise that positions the company at the forefront of Web3, AI, and customer loyalty innovation. CEO Mohsin Qureshi boasts over 15 years in foodtech, q-commerce, and technology startups, having held key leadership positions at Foodics, Cheetay, and Delivery Hero. CTO Asif Ali brings experience from leadership roles at Careem, Swvl, and foodpanda, and is currently pursuing a Ph.D. in AI. 

Shipfinex tokenization platform receives UAE initial approval

Shipfinex tokenization platform receives UAE initial approval

UAE based Shipfinex, a Blockchain platform for tokenizing maritime assets, announced that it had initial approval from Dubai’s Virtual Assets Regulatory Authority (VARA). The licensing remains subject to fulfilment of pre-operating conditions and qualifying for operational approval. Asper the updated press release, this approval marks a significant step toward launching a regulated and secure platform for investors seeking fractional ownership and investment opportunities in the maritime industry.

The maritime industry has long been dominated by large institutions and wealthy individuals, primarily due to high capital requirements and limited liquidity. ShipFinex is introducing fractional ownership and blockchain technology, making maritime investments accessible to everyday investors.

The Initial approval is an essential milestone in the pursuit of a complete Virtual Asset Service Provider (VASP) License and will enable Shipfinex to move forward in the licensing process as we look to offer comprehensive virtual asset services and related activities in the region in the future.

“We are thrilled to receive this initial approval, which allows us to lay the groundwork for our operations and move closer to offering innovative and compliant virtual asset services to our clients,” said Capt Vikas Pandey, CEO of Shipfinex FZCO. “This initial approval aligns with our commitment to contribute to the UAE’s strategy for future innovation and sustainability.”

On receiving the license, ShipFinex will be able to offer a comprehensive suite of services, including brokerage, custody, exchange, and investment management, all within a fully regulated ecosystem. This provides investors with a one-stop platform for diversified maritime investments.

Shipfinex’s operations in the UAE, once fully licensed, will enhance the country’s digital asset infrastructure, contributing to its reputation as a forward-thinking hub for financial innovation. With its robust regulatory environment and strategic initiatives, the UAE is a leader in the financial industry. Shipfinex’s presence will further strengthen Dubai’s status as a global maritime and commerce hub, driving economic growth through innovative solutions and fractional ownership models.

In the coming months, ShipFinex plans to expand its offerings and capabilities to further enhance investor experience and drive growth in the maritime finance sector. It will introduce a broader range of tokenized maritime assets giving investors more options to diversify their portfolios, whether they are interested in cargo shops, tankers or specialized vessels.

The article was updated on Sept 2nd at 19:17 Beirut Time based on an updated press release published on the same link provided in initial story.

UAE based Web3 entity Verofax for customer relations raises $3 million

UAE based Web3 entity Verofax for customer relations raises $3 million

The Abu Dhabi-based Web3 services provider Verofax has raised $3 million in bridge capital. Leads in the round were King Abdullah University for Science and Technology, Plug & Play Tech Center, Navig8 Group, and Trove Capital UK. Other participants included Jawa Brothers Advisory, Alzamil Pedco CVC, and Tracecore CVC.

As per the announcement, the money will be used by the company to carry out its planned projects in the Middle East and the EU, including AI-powered guides in the GCC and sports fan guides in the EU and North America.

Verofax uses patented Web3 technologies like augmented reality, blockchain, and artificial intelligence to create elevated tourist, shopper, and brand marketing experiences. These technologies allow retailers, sports stadiums, and destinations to make their experiences more interactive, increase conversion, and promote social virality. Through direct involvement and the use of gamification, brands can establish a closer relationship with their customers and achieve better outcomes from AI and AR experiences.

Leading companies such as Anheuser Busch Inc. and Emirates Airlines currently use Verofax products, which are applicable to a variety of industries, including retail, tourism, and sports.

Wassim Merheby, CEO of Verofax, said, “Our solution helps tourists elevate their experiences, unlock personalized discounts and offer gamified ‘Explore to Win’ sponsored games in augmented reality. This allows enterprises and brands to sponsor and elevate their marketing efficiency, power direct-to-consumer communication and deliver amazing experiences to drive growth and boost loyalty. We are thrilled to be joined by strategic investors that will help us accelerate our AI guide solution and AR gamified experiences and grow through their collective network and with their advice.”

This allows travel destinations, retailers, and sports stadiums to make their experiences interactive in order to increase conversion and social virality. Through direct involvement and gamification, brands can increase consumer intimacy and get unparalleled outcomes from AI and AR experiences.

Verofax has received numerous accolades for using artificial intelligence in the retail and tourism industries, and it has made over $3 million in sales for Fortune 100 firms in 50 different countries so far.

Crypto.com launches its global retail service from Dubai UAE

Crypto.com launches its global retail service from Dubai UAE

Crypto.com, the global crypto exchange, has announced that it will be launching its global retail services across 90 countries out of Dubai UAE. The crypto exchange has partnered with Standard Chartered Bank to allow the deposit and withdrawal of crypto and fiat easily.

As per their X post, “This is the first seamless USD, EUR and AED deposit and withdrawal in over 90 countries. We’re excited to announce the launch of global retail services to our millions of users worldwide, powered by Standard Chartered Bank from our Dubai hub.”

The company claims that this move will improve the efficiency and utility of users’ cryptocurrency transactions.

The global retail services will be managed from Crypto.com’s regional hub in Dubai. Standard Chartered will support the expansion. The regulatory framework established by Dubai’s Virtual Assets Regulatory Authority is intended to provide a secure environment for the growth of digital assets.

“Working with Standard Chartered to launch our global retail services is a huge milestone for us,” said Eric Anziani, President and COO of Crypto.com.

“Not only is it a significant step forward in our global expansion plans, but also enables our commitment to delivering a world-class customer experience whilst maintaining the highest levels of security and compliance,”

The service will first be available next month to customers in the UAE. Users in the region will be able to access Crypto.com’s products and services through the app. This includes the ability to trade over 250 cryptocurrencies. Crypto.com plans to expand the service to other countries in the future.

The company aims to offer the same services and financial infrastructure for deposits and withdrawals to a global audience.

Rola Abu Manneh, Chief Executive Officer, UAE, Middle East and Pakistan for Standard Chartered, added: “This collaboration closely aligns with the UAE’s National Agenda which emphasizes innovation, economic diversification, and the growth of a knowledge-based economy.”

“By providing cutting edge solutions that meet the evolving needs of customers across the UAE and beyond, we are contributing to the UAE’s vision of becoming a regional and international hub for digital assets,” she added.

In April of 2024, Crypto.com received its full license from Dubai’s virtual asset regulator VARA.

UAE based Cypher Capital participates in $3.5 million round in Echelon decentralized lending protocol

UAE based Cypher Capital participates in $3.5 million round in Echelon decentralized lending protocol


UAE headquartered Cypher Capital, a crypto investment firm, has participated in the $3.5 million seed funding round for Echelon, an innovative decentralized lending protocol. The seed round attracted additional support from strategic partners including Amber Group, Laser Digital, Saison Capital, Selini Capital, Interop Ventures, and Re7. 

As per the press release, this investment demonstrates Cypher Capital’s commitment to supporting advanced solutions in decentralized finance (DeFi) and blockchain technology. Echelon aims to enhance DeFi lending by improving capital efficiency, integrating with other DeFi applications, and providing innovative yield strategies on Move-based blockchains such as Movement and Aptos.

“Echelon has demonstrated that their project is truly driving innovation in the DeFi space,” said Harsh Agarwal, Investment Lead at Cypher Capital “Echelon’s focus on capital efficiency, user-friendly design, and its potential to integrate real-world assets makes it a standout in the evolving DeFi landscape. We are excited to support their efforts in developing high-performance lending markets.”

Echelon’s protocol features advanced functionalities including increased borrowing power on correlated assets, isolated pools for niche asset markets, and direct in-wallet integration for streamlined yield strategies. The platform is designed to target institutional-grade markets while ensuring affordable borrowing rates and innovative yield opportunities.

“This funding will help us build additional lending and risk management products, expand to new networks, and provide global access to dollar denominated yields,” said Glen Rose, cofounder of Echelon. “We’re excited to build core primitives on high performance Move-based chains.” 

With the new funding, Echelon plans to enhance its offerings by developing strategies backed by treasury and real-world assets (RWAs), implementing cross-chain deposit vaults, and expanding its team of full-stack and smart contract engineers.

UAE Financial institutions will be able to integrate digital assets with Klumi and Fuze

UAE Financial institutions will be able to integrate digital assets with Klumi and Fuze

Klumi Ventures a blockchain-native Venture Capital Firm and Fund Manager based in Abu Dhabi, has partnered with Fuze, the Middle East’s regulated digital assets and blockchain infrastructure provider to harness Klumi Ventures’ investment acumen and Web3 expertise alongside Fuze’s robust digital assets infrastructure to accelerate the adoption of Web3 technologies throughout the region. Financial institutions will be able to integrate regulated digital assets, including cryptocurrencies, stablecoins, tokenized assets and central bank digital currencies (CBDCs) into their operations.

The parties will also be working together to facilitate enhancements in cross-border payments, enabling financial institutions through the speed and efficiency of digital assets. Both companies will also collaborate on educational initiatives, workshops, and programs aimed at helping financial institutions understand the complexities of blockchain technology, regulatory compliance, and the potential of digital assets. Additionally, the partnership will focus on developing new products and exploring unique use cases, such as specialized OTC trading solutions.

This collaboration underscores a shared commitment to advancing the Web3 and digital asset ecosystem within UAE, aligning closely with the Abu Dhabi Economic Vision 2030 and the regulatory standards set by the ADGM and the Financial Services Regulatory Authority (FSRA).

“By aligning Fuze’s vision with Klumi Ventures’ investment expertise, we are set to drive meaningful growth in the region. This collaboration not only supports our commitment to nurturing startups but also enhances our ability to deliver innovative solutions for tokenizing real-world assets and facilitating cross-border payments. We are enthusiastic about the opportunities this partnership presents and look forward to collaborating with Fuze as we work together to shape the future of digital assets in the region,” stated Kristiina Lumeste, SEO and Founder of Klumi Ventures.

Mo Ali Yusuf, Co-Founder and CEO of Fuze said, “The future success of regional economies relies on grasping the full potential of blockchain and Web3. Klumi Ventures is unequivocal in its belief in the transformative potential of this infrastructure and we look forward to fostering innovation through our collaboration.”

Fuze, which is backed by Further Ventures, has rapidly established itself as a leader in the digital assets sector, offering a Digital-Assets-as-a-Service platform that empowers banks and fintechs to integrate regulated digital assets into their offerings. Additionally, Fuze provides Over-The-Counter (OTC) services, facilitating larger digital asset transactions for institutions, funds, and high-net-worth individuals (HNIs).

Overall, the partnership between Klumi Ventures and Fuze is poised to accelerate the digital asset landscape, and enhance technological capabilities in the region from the UAE capital. A recent panel held by the Institute of Chartered Accountants in England and Wales (ICAEW) and the UAE Banks Federation (UBF) highlighted that the UAE alone accounts for between 5-10% of global digital assets trading volume. Globally, revenue growth for digital assets is expected to grow by 17.38% in 2025 (Statista).

UAE Myco raises $10 million from MENA and international investors

UAE Myco raises $10 million from MENA and international investors

UAE-based Web3 streaming platform, myco, has raises $10 million in its Series A funding, prominent venture investors across MENA, such as Ghaf Capital, Daman Investments, Enjinstarter and other from North America and Europe. Key participants include Aptos Labs, B Digital, Mocha Ventures, Art3 Foundation, Mix Media Network, Factor6 Capital Partners, along with several prominent strategic angel investors. 88 accredited investors also participated in the round through Republic.com.

The capital was raised at a post-money valuation of $80 million, supported by Daman Investments as an Advisory Partner and Seed Investor, and Republic Crypto as a Web3 Advisor.

Last month, myco reported its first profitable year, with an EBITDA of $1 million and revenue of $7.5 million for the 2023-24 fiscal year. 

This funding milestone is also accompanied with the recent announcement of the multi-million dollar partnership deal between myco & it’s new blockchain partner, Aptos Foundation. The platform is set to relaunch its native utility token on the Aptos Blockchain at the beginning of Q4 2024, along with the migration of its wallet infrastructure. 

“myco has already demonstrated our ability to scale in key markets, achieving exceptional metrics in user growth, retention, revenue, and community building. With this new capital, we plan to replicate our success by expanding into markets with similar demographics and strong regional partnerships.” said Umair Masoom, Founder and Managing Director of myco.

myco’s live streaming division has secured major rights until 2025, including ICC and PSL Cricket Rights for Pakistan, all major cricketing rights for North America via Willow TV, and rights for the World Squash Federation and Egypt Squash Federation. Additionally, myco holds 

Following recent expansions into North America and Egypt, myco is identifying further strategic growth territories and aims to conclude a second closing on their Series A by early 2025.

UAE regulated crypto provider partners with Zodia for custody solutions

UAE regulated crypto provider partners with Zodia for custody solutions

Aquanow, a global crypto infrastructure provider trusted by 300+ clients, has partnered with  Zodia Custody, a leading institution-first digital asset custodian backed by Standard Chartered, SBI Holdings, Northern Trust, and National Australia Bank, to offer enterprise custody solutions for its clients.

The partnership will see Zodia Custody provide its enterprise custody solutions, which are trusted by globally recognized financial institutions, for Aquanow’s expansion across UAE and the wider Gulf Cooperation Council (GCC) region region. By leveraging Zodia Custody’s enterprise technology solutions, this custody partnership will allow the crypto provider to ensure that it meets the institutional-grade cold storage demands required by banks, neobanks, and other top-tier financial institutions.

Last month, Aquanow announced that it had secured full operational approval for its Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA). The approval has positioned the company to begin enabling crypto services in partnership with major financial institutions across the Middle East.

“Together with Aquanow, we’ll be playing our part in building the infrastructure that local and global institutions need in order to capitalize on the digital asset opportunities in the Middle East.” said Julian Sawyer, Chief Executive Officer, Zodia Custody. “And the foundations of that ecosystem begin with efficient, secure custody. This is where our partnership with Aquanow is a leap forward in building the UAE’s digital asset ecosystem.”

“As we enter the next phase of our growth and begin expanding across the Middle East, we’re proud to be partnering with Zodia Custody for digital asset custody solutions,” said Phil Sham, CEO of Aquanow. “This partnership provides us with the enterprise custody solutions trusted by even the most demanding financial institutions, ensuring that digital assets accessed through their platform are both safe and readily available.”