Binance crypto exchange announced to its UAE users, that after receiving its VASP license from Dubai’s virtual asset regulatory authority for their local crypto exchange in Dubai, users in UAE need to transition their accounts to Binance FZE in UAE.

Part of the onboarding requirements is that all UAE resident users will need to update their KYC information by 15th December 2024.  

As per the blog post affected users will receive continuous updates and communications regarding the process at different stages from now until all UAE resident accounts have been successfully transitioned. The transition process will not affect users’ current account access and they can continue to use products and services already available on Binance’s Global Exchange until 2024-12-15. After this date, the user’s account will transition to Binance FZE, but the login credentials (email & password) and UID number will remain the same. Users are reminded to update their KYC information at the earliest to avoid the restriction of their account to withdrawal only

All UAE resident users who update their KYC information before 2024-10-30 will be automatically entered into a Prize Draw to share $500,000 in BTC rewards, with the ultimate prize being 1 BTC! Winners will be selected through the BNB Smart Chain hash value on 2025-01-01 23:59 (UTC) and announced via email. 

Binance UAE users will be able to access t bank deposits and withdrawals in local fiat currency (AED) and more than 300+ virtual assets, UAE resident users can rest assured knowing that all products already available on the Binance Global Exchange will also be available on Binance FZE.

Blade Labs is a financial technology that tokenizes financial productions and services secure a fintech license at Qatar Financial Center, and admittance to the Digital Asset Lab, as it partners with The Hashgraph Association, a Swiss digital enabler of the Hedera Network, to utilize DLT ( distributed ledger technology) to foster and advance financial services to the masses of the MENA region.

In addition Blade Labs is registering for a Financial Services Regulatory Association (FSRA) license in Abu Dhabi Global Market (ADGM).

Kamal Youssefi, President of The Hashgraph Association, said, “The Hashgraph Association is actively invested in ensuring digital enablement and inclusion, particularly, in the Middle East. Our strategic investment in Blade Labs, which provides innovative fintech solutions in the region, is testimony to our commitment to empowering enterprises with Web3-compliant solutions.

The partnership comes at the heels of two major government-backed Venture Studio initiatives being undertaken by The Hashgraph Association in the region; together, these co-investment ventures are valued at $300 million over the next 5-years.

As part of the collaboration, Blade Labs will provide both a conventional and Shariah compliant Digital Securities Platform to support these investments. The strategic investment and partnership address the growing need for digital transformation solutions required by enterprises to participate in the digital economy, effectively.

Blade Labs is currently focused on providing non-custodial fintech APIs that distribute tokenized funds across multiple jurisdictions in a compliant and user-friendly manner. Tokenizing funds enhances liquidity with real-time settlement, reduces operational costs, and improves collateral management by allowing these funds to be used as collateral across various platforms. These benefits make tokenized funds an attractive option for both traditional and digital-native investors, offering better returns, capital efficiency, and advanced risk management.

“As an investor and strategic ecosystem partner of Blade Labs, The Hashgraph Association’s deep multi-level relationship will enable us to integrate our cutting-edge digital asset solutions with more businesses in the Middle East and beyond. We are also well placed to support the execution of strategic initiatives in the region to grow and empower ecosystems that will help us drive digital transformation. said Sami Mian, CEO of Blade Labs.

The Hashgraph Association has been at the forefront of key ventures in the Middle East and GCC (Gulf Cooperation Council) region. The first in Saudi Arabia has already commenced this year to build a $250 million DeepTech Venture Studio in Riyadh, in close partnership with the Ministry of Investment Saudi Arabia (MISA), and the second in Qatar aims to build a $50 million Digital Assets Venture Studio in Doha, in collaboration with the Qatar Financial Centre (QFC), with both these partnerships considered long-term and spanning over the next five years. 

Bahrain headquartered, Investcorp, a leading alternative investment firm, and Securitize, a firm tokenizing real-world assets, have partnered to explore fund tokenization opportunities initially within Investcorp’s Strategic Capital Group (“ISCG”).

ISCG is focused on acquiring minority interests in alternative asset managers (GPs), particularly GPs who manage longer-duration private capital strategies. The group manages approximately $1.5 billion of AUM and has completed 12 investments since its launch in 2019, placing it among the most active GP stakes investors in the industry. ISCG has partnered with mid-sized GPs across buyout, secondaries, structured equity, private credit, and real asset strategies.

“This partnership with Securitize continues Investcorp’s strong legacy as an innovator in alternative investments,” said Anthony Maniscalco, Managing Partner, ISCG. “The use of tokenization technology has the potential to increase efficiencies for investors, and also provides for a new era of accessibility. Through this collaboration, Securitize is bringing access to the GP staking strategy for a wider range of investors.”

“In addition to partnering with Securitize in this breakthrough technology, we look forward to introducing our existing and future GP partners to this ecosystem as part of our broader GP development and value-add toolkit,” said Tim Osnabrug, Partner, ISCG.

According to Securitize, this partnership will enable qualified investors to access interests in GP staking strategy through Securitize’s innovative tokenization technology. In recent years, GP staking has become a highly sought-after strategy as investors seek to capitalize on the growth of private markets more broadly.

“We believe that Investcorp, as a global alternative investment manager, represents some of the most innovative thinking in the market,” said Carlos Domingo, Co-Founder and CEO, Securitize. “By tokenizing alternative assets, we are breaking down barriers and allowing individual investors to participate in opportunities that were previously out of reach. This partnership underscores our commitment to leveraging technology to unlock new financial possibilities.”

The tokenization of funds will be managed by Securitize’s digital transfer agent and offered through its digital asset management arm, Securitize Capital. The tokenized feeder fund will be available for investment on Securitize Markets, the firm’s broker-dealer platform. This partnership highlights the transformative power of blockchain technology in the financial sector, enabling fractional ownership and increased liquidity.

UAE Stablecoin Payment Token Services Regulation came out laying down the rules and conditions by the Central Bank of UAE for licenses pertaining to payment tokens, not allowing algorithmic tokens to be included and only allowing foreign stablecoins to be used to purchase virtual assets.

The Central Bank of the UAE defined Payment Token Services as being digital payment services in the UAE comprising of three categories, namely Payment Token Issuance, Payment Token Conversion and Payment Token Custody and Transfer.

The Central Bank Law provides the statutory basis for the powers of the Central Bank in relation to the licensing and ongoing supervision of Licensed Payment Token Service Providers, and related matters.

As per the UAE Central Bank payment tokens are virtual assets which purport to maintain a stable value referencing the value of the same fiat currency as the payment token is denominate in or another payment token also denominated in the same fiat currency.

In short the Central Bank of UAE placed limitation on the services that could be utilized by Foreign Payment tokens and their acceptance as a means of payment. It also prohibited the issuance, promotion and performance of Algorithmic stablecoins, privacy tokens and other means of payment which are not UAE Dirham payment tokens or foreign payment tokens.

All stablecoin payments have to be carried out through a licensed payment token service provider, or a registered foreign payment token issuer (registered in a free zone) or a registered foreign payment token custodian and transferer or registered payment conversion provider.

The AED Stablecoin versus the foreign stablecoin

The UAE Central Bank made a clear distinction between the Dirham Payment token which can be issued by licensed payment token issuers used for any lawful purpose, and the foreign payment token issued by a Registered Foreign Payment Token Issuer which can only be used as a means of payment for purchasing virtual assets or derivatives of virtual assets.  

As per the regulation, “ A Foreign Payment Token Registree may only initiate, facilitate, effect or direct a Payment Token Transfer as part of its Payment Token Service in the UAE if the transfer is of a Foreign Payment Token being used (or sold for use) as a means of payment for purchase of Virtual Assets or derivatives of Virtual Assets.”

While a a Licensed Payment Token Issuer may only issue Dirham Payment Tokens to Persons resident in the UAE. No Merchant or other Person in the UAE selling goods or services during the course of business may accept a Virtual Asset towards payment for that sale unless that Virtual Asset is a Dirham Payment Token issued by a Licensed Payment Token Issuer being used as a Means of Payment.

In short only two forms of stablecoins can be used, the UAE Dirham stablecoin for payments within the UAE, and a foreign stablecoin which can only be used to purchase a virtual asset or its derivative.

The Role of Banks

As per the Central Bank, a Bank may not act as a Payment Token Issuer, but they can create a subsidiary or affiliate which can perform this activity. In addition crypto exchange platforms, can receive a non-objection registration to perform payment token conversions

While both a bank or exchange house may apply for a Non-Objection Registration in order to perform Dirham Payment Token Conversion.

 A Person who is licensed by SCA or any Local Licensing Authority as a Virtual Assets Service Provider to provide custody services for Virtual Assets, may apply for a Non-Objection Registration to perform Payment Token Custody and Transfer of Foreign Payment Tokens.

Who can issue Foreign stablecoins

Any entity or person incorporated outside the UAE, such as a financial zone can apply to be a foreign payment token issuer. They will need to hold a reserve of the same value as the total value of Foreign Payment Tokens which that Foreign Payment Token Registree has issued, and denominated in the same currency as that of the Foreign Payment Tokens which that Foreign Payment Token Registree has issued.

Central Bank limits

The regulation allows the Central Bank to put limits on the total volume or value of Payment Tokens which a Dirham Payment Token issuer may sell or transfer, or restrict the sale or transfer of further payment tokens by that payment token issuer.

The Central Bank can also limit the total volume or value of Payment Tokens which a Foreign Payment Token Issuer may sell or transfer to Persons in the UAE, or restrict the sale or transfer of further Payment Tokens by that Payment Token Issuer to Persons in the UAE.

In addition, the Central Bank can limit the total number of customers, or restrict the onboarding of new Customers, to which a Dirham Payment Token Issuer may sell or transfer its Payment Tokens; and even a foreign payment token issuer.

The Central Bank can limit total number of Customers in the UAE, or restrict the on-boarding of new Customers in the UAE, to which a Foreign Payment Token Issuer may sell or transfer its Payment Tokens;

The Central Bank can also limit the total volume or value of Payment Tokens which a Payment Token Conversion Provider may buy, sell or admit to trading on its platform; and  the total number of Customers to which a Payment Token Conversion Provider or Payment Token Custodian and Transferor may provide services, or the on-boarding of new Customers by that Payment Token Conversion Provider or Payment Token Custodian and Transferor.

Conclusion

So while the UAE Central Bank has finally come out with its stablecoin and payment token regulations, it has placed alot of limits trying to keep the effect of non dirham stablecoins minimum on its economy. One can only wonder, what will the difference be between the AED stablecoin and the UAE CBDC that they are also working on.

AMINA Bank, an authorized digital assets bank regulated by FINMA and within ADGM in UAE, unveiled the AMINA Payment Network (APN). Tailored for crypto banking, APN streamlines real-time payments among its members, fostering seamless financial transaction

As per the press release, APN supports CHF, EUR, and USD payments between APN members, providing flexibility and efficiency for individuals and businesses. Additional currencies will be added in the near future. The launch of the APN further solidifies AMINA Bank’s role as a prominent player in crypto banking.

Members can join with an introductory offer of zero membership and transaction fees. The APN is currently available to existing AMINA Bank clients. Members must have an AMINA current account to access the network.

Officials from AMINA Bank said that in an age where 24/7 cryptocurrency asset markets are normalised, and wider global crypto adoption continues to grow at pace, the demand for faster transactions is no longer a want, but a need. With the introduction of the AMINA Payment Network, the facilitation of seamless cross-border transactions between network members across the globe is realised, and the required efficiency of money markets can meet the demands of the current financial landscape.

AMINA Bank has a Swiss banking and securities dealer license from FINMA, as well as hubs in Abu Dhabi and Hong Kong allowing it to offer fiat and crypto services to progressive investors.

HMM, Korea’s largest and the world’s eighth-largest container carrier, has announced a strategic partnership with CargoX, a leading provider of electronic trade document solutions that is working with clients in Egypt, and UAE This collaboration introduces electronic bill of lading (eBL) features on the HMM digital service platform.

Through this partnership, HMM customers will benefit from the advanced functionalities of the CargoX Platform, which will be integrated into HMM’s digital services. This integration aims to modernise and streamline eBL workflows, enhancing the efficiency and security of global trade documentation.

We are delighted to announce the launch of our electronic bill of lading service in partnership with CargoX, a leading provider of electronic document solutions. This new eBL capability will enable us to deliver an enhanced service to our customers and spearhead the digitalisation of the shipping industry,” said Kurt (Wonjun) Jang, SVP of HMM Container Operation Office.

“We are thrilled to partner with HMM, a global shipping leader. This collaboration advances global trade by implementing efficient, fast, and secure electronic bills of lading. As the logistics industry digitises, we are proud to support HMM in leading this transformation,” said Bojan Čekrlić, CEO of CargoX.

Customers using HMM services can now generate eBLs within the HMM digital service system and seamlessly transfer them through the global CargoX Platform.

The eBL document lifecycle includes features such as transfer, surrender, and document acceptance, ensuring comprehensive support for all equivalent paper-based functions. Each eBL is recorded on the public ledger, guaranteeing secure and immutable documentation, with audit logs accessible at all times.

Initially, the service supports electronic bills of lading in PDF format, with structured data eBLs based on the forthcoming DCSA eBL standard to be available soon.

The HMM digital services platform and CargoX Platform integration will be available to all HMM customers globally starting on 8 July 2024.

Bitpanda.com, the crypto broker platform of European fintech unicorn Bitpanda, which recently announced its expansion into the UAE with a new office, now has 5 million retail users. This comes amidst projections that UAE’s digital assets market is projected to grow by 8.01% and reach a market volume of $616.80 million by 2028.

BitPanda Growth

After achieving a record-setting revenue of over $108 million in Q1 2024, Bitpanda added nearly 500,000 new users in Q2 as European investors have increasingly begun looking to take advantage of safe and secure digital assets trading.

BitPanda acquired several new licenses with major regulators including BaFin and Bitpanda Technology Solutions (a relaunch of its B2B-focused white-label solution). Additionally, the company also formed several industry-leading partnerships with well-known institutions like Deutsche Bank, N26, LBBW, and Raiffeisen.

Interest from MENA

Bitpanda has seen a significant rise in investment interest from not only Europe but also the Middle East. The UAE, with its digital assets marketed projected to grow by 8.01% and reach a market volume of $616.80 million by 2028, has been a key catalyst in Bitpanda’s recent decision to expand; with DMCC licensing,

the company launched Bitpanda MENA in early May at the most recent edition of the Dubai Fintech Summit to cater to the growing demand for digital assets that it is observing from the country and the wider region. Although this offering is not available to retail investors at the moment, Bitpanda already boasts the title of Europe’s leading crypto company and this expansion is further strengthening its global position as well.

Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda stated, “We have the right products, a proven history of working with regulators, immense trust from our users and partners – including Deutsche Bank, LBBW and FC Bayern Munich – and we remain absolutely focused on growth. It took us five years to reach our first million users; we were able to achieve this same feat in the past 12 months alone, with more than 500,000 users joining us in just the last three months. We know we’re on the right track, and as we approach our 10th anniversary later this year, I know we’re going to have a lot to celebrate.”

Walid BenOthman, Managing Director, concluded: “While we are proud of our progress in Europe and the overall success we’ve achieved over the past decade, this growth has not been rooted in complacency. That is why we are now targeting the Middle East, to further strengthen our global standing as an unparalleled fintech. With a 25% surge in users over the past 12 months, we are confident in the strength of the MENA region and aspire to achieve similar success over the next year. We look forward to what the future holds.”

The legendary Blockchain Life 2024 will return for its 13th edition on October 22-23. As Dubai gains a reputation as a global crypto hub, the forum is set to be the central event of this year.

With the highly anticipated peak of the crypto market growth still ahead, the forum presents an excellent opportunity for attendees to maximize their earnings. More than 10,000 people from 120 countries are expected to gather at the forum, to gain valuable knowledge, forge new connections, and explore potential investment opportunities.

The two-day event will feature a lineup of industry experts, thought leaders, and innovators who will share their insights and strategies in the fast-growing market.

In addition to the insightful panel discussions, Blockchain Life 2024 will feature an innovative expo area where leading industry companies will showcase their latest products, services, and technologies.

VIP ticket holders and speakers will also experience the hours of informal networking at the legendary AfterParty.

Buy a ticket at the lowest price using promo code ***  Presale right now: www.blockchain-life.com

Banner link: https://drive.google.com/file/d/1ElLphzdT6o4VsHcwUQtxjj1vwMviN4qY/view?usp=sharing 

Bybit, A global cryptocurrency exchange, which has applied for a license within the UAE through Dubai’s VARA, has released a new study showing institutional investors have increased their ETH holdings ahead of the launch of the spot ETH ETF in the US. Bybit’s institutional exposure to ETH tripled since ETF announcement, from 6.54% to 14.29%.

According to analysts they predict this ETF will capture between $8 and $12 billion from US and global markets, driving Ethereum to new all-time highs by year-end.

According to recent data, Bybit’s institutional investors’ exposure to ETH has almost tripled since the ETF announcement on May 24, 2024—moving from 6.54% to a current weighting of 14.29%. This surge underscores the growing confidence in Ethereum’s future performance and the expected positive impact of the ETF launch.

Retail investors on Bybit have also increased their ETH allocations, although not as dramatically as institutional investors. The allocation to ETH has risen from 7.40% to 9.52%, reflecting a cautious but positive response to the ETF announcement.

“Ethereum is the crypto product favored by traditional capital such as BlackRock and Franklin Templeton, both of whom have tokenized funds on the platform,” said Hao Yang, head of financial products at Bybit. “Given this, the chain seems poised to become the institutional pick. With its native yield, the ETH token allows for composability, and we are seeing protocols building interesting derivatives based on ETH’s stable yield, leveraging this to create crypto primitives that mimic those built on top of the US Treasury market. Finally, because a portion of ETH is burned (sent to a wallet from which no withdrawals are possible), the asset can become deflationary, which means the more network effects kick in, the scarcer the asset becomes.”

Interestingly Institutional investors seem to have pulled out some investments into stablecoins and other crypto assets and moved to Eth. Before ETH ETF announcement, 33% of institutional investors held stablecoins, while after this went down to 25.16%. This is also seen in other crypto assets that were held by investors, where it went down as well from 33.05% to 30.3%.

As for BTC ( Bitcoin) holdings it also went up on Bybit by 4% to 30.26% after ETH ETF announcement.

Liminal Custody, a digital asset custody and wallet infrastructure provider has opened an office in Dubai as it awaits its license from VARA after receiving its license in ADGM in Abu Dhabi. The Dubai office will be located in Sheikh Rashid Tower in Dubai within the Dubai World Trade Center Free zone.

According to the press release, this move marks a significant milestone for Liminal as it seeks to cement its role as a key player in the rapidly growing digital asset industry within the MENA region, known for its innovation and institutional adoption.

The expansion enhances Liminal’s existing presence in the region, which includes a Financial Services Permission (FSP) licence from the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM).

“Our expansion to Dubai, along with our Initial Approval(IA) for a VASP licence from VARA, highlights Liminal’s commitment to fostering the secure growth of the regional digital asset ecosystem,” said Amir Tabch, CEO Middle East at Liminal Custody. “We are eager to collaborate with established entities like DWTC and work closely with VARA to enhance our service offerings. This strategic move enables us to provide comprehensive custody solutions tailored to the evolving needs of Dubai and the broader MENA market.”

In May Liminal Custody acquired the Financial Services Permission (FSP) from the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) allowing it to operate as a regulated crypto custodian within the Middle East.

HexTrust another crypto custodian has already received its license from VARA