As the FTX debacle unfolds and FTX files for bankruptcy, CEO steps down, UAE VARA ( Virtual Asset Regulatory Authority) in Dubai has suspended FTX’s license. FTX MENA users brought in high revenues for FTX as it was considered as the third biggest revenue region for FTX. 

While the crypto markets are in turmoil across the globe, it will also have an effect on the MENA region. FTX MENA CEO Balsam Danhach told Reuters in a previous interview,  “Our license expands to retail customers as well, however, it will be a gradual scale up to ensure that we approach the retail market within the guidelines set by the Virtual Assets Regulatory Authority.”

Danhach also told zawya in a recent interview that their operation in MENA region is the second to third region in terms of global revenue performance. At the time FTX had 6 million users with a trading volume of $12 billion per day.

He stated in his interview with Zawya, talking about MENA and the importance of their license in UAE, “We are not talking about a region contributing a small percentage to our revenues but a region which is among our top three in terms of revenues. Here there are higher volumes per user.”

While FTX officially launched in UAE on October 31st 2022, its CEO had commented that from July 2022 until October FTX was testing backend migration of their existing user base from MENA onto their FTX MENA platform. FTX was offering the same access to all the services offered globally through the local FTX page. He stated at the time, “We are working on trading in UAE dirhams and accessing local banks.”

FTX MENA replying to a post on LinkedIn stated that they had not actually commenced operations locally. ” FTX MENA would like to clarify that the announcement of receiving its MVP License indicates that we are only able to commence readiness measures. Rigorous pre-conditions set by VARA have to be met by FTX MENA before undertaking any active market operations in the UAE. FTX MENA confirms that we are still in the readiness preparation phase and have hence not onboarded any clients nor engaged in any active operations locally as we have not received VARA approval to do so.” 

FTX Exchange, was the first Virtual Asset Service Provider (#VASP) to receive the MVP license to operate its virtual asset (VA) exchange and clearing house services from Dubai’s Virtual Assets Regulatory Authority (VARA).

Given the comments made by FTX MENA CEO,  it seems that there will be an effect on a number of crypto traders in the region. What could be worrisome is how will this play into the crypto growth in the region, and UAE’s stance on crypto and crypto regulation.

UAE based Mubadala Capital led a Series B funding round of $70 million for Ramp Network, whose claim their mission is to make Web3 a reality by enabling mainstream adoption of  products and services offered by pioneering blockchain ventures.

Ramp Network does this by offering a payment infrastructure that connects crypto and traditional finance.

“Ramp has established a clear lead in the crypto gaming space by delivering a superior user experience, leading conversion rates and strong regulatory compliance,” said Frederic Lardieg at Mubadala Capital Ventures.

Among the investors was Korelya Capital,  Balderton Capital which led its $53 million Series A, and new investor Cogito Capital.

The firm has now raised over $120 million in the past year. It offers a payment product that lets users buy cryptocurrencies inside any application or website, essentially the Web3 answer to services like PayPal (PYPL) or Stripe. Its customers include GameStop (GME), crypto-based fantasy sports company Sorare, play-to-earn online game Axie Infinity and Ledger, maker of hardware crypto wallets.

Ramp plans to use the capital to hire for a number of senior roles. It has about 70 open positions, which means its staff will number 200, Co-founder and CEO Szymon Sypniewicz told CoinDesk in an email. The funding will also go toward adding local fiat currencies and payment methods as part of a global expansion.

Sypniewicz states, “Our goal is to keep building infrastructure to make Web3 easy and accessible. Despite current market conditions, we see a growing trend of web2 companies looking to move into Web3, and we’re uniquely positioned to help them through this transformation. That’s why we’re doubling down on growth.”

“Local payment methods reduce friction and costs for lower-income regions, while being more intuitive and accessible for more people in the world,” Sypniewicz said. “This is particularly true in LatAm and Asia, both regions that have seen explosive crypto adoption, and that we consider our next strategic targets.”

As part of the investment, Mubadala Capital’s Frederic Lardieg has joined Ramp’s as a director, and Korelya Capital partner Paul Degueuse joined as an observer.

Ramp said payment volumes have increased 240% year-over-year, and the number of unique users coming from integration partners rose by more than seven times.

It was not surprising to see Mubadala Capital invest in Blockchain crypto entity, given its open sponsorship of Token 2049 in London.

Alex Tapscott, author of Digital Asset Revolution and co-founder of the Blockchain Research Institute, hails Web3 and blockchain start-up, PermianChain for bringing the digital asset revolution to the natural resource sectors.

Chapter 7 is dedicated to how blockchain creates value through natural asset tokens (NATs), mainly in oil and natural gas. Mohamed El-Masri, Founder and CEO of PermianChain and CEO of Brox Equity, explains the mechanics behind energy tokenization within a blockchain-enabled ecosystem. 

El-Masri discusses how utilization of blockchain is changing the way exploration and production companies raise capital as well as how investors and consumers participate in a digital energy market with surplus or shortage. 

PermianChain’s solution is a digital platform combining a blockchain, decentralized cloud storage and Web3 compatible features that supports two forms of digital economics, one being a security token and the other being a utility token. Chapter 7 of Digital Asset Revolution also delves into how PermianChain introduces a digital midstream solution to powering bitcoin mining rigs through oil and gas operators. 

Tapscott states, “This is the kind of fresh thinking that this industry needs!”

Back in April 2020, reduced consumer demand caused oil futures to fall into negative territory, oil firms had to pay entities to take oil off their hands as temporary storage was exhausted. Additionally, increased political pressure and lack of commercial viability in some areas has caused natural gas assets and resources to be stranded or wasted (i.e., flared or vented), in both situations taking away economic benefit from communities while the latter is causing harm to the environment. On the flip side, current global energy demand is outstripping supply, causing marginal oil and gas fields to become commercially viable. Unfortunately, the lack of incentive for oil and gas firms to invest in stranded [or distressed] energy assets did not allow regional and global energy markets to make better use of such wasted resources, until now.    

“These challenges, while daunting, are the exact type that we can mitigate by using blockchain technology and proof of work infrastructure. We provide the gateway for the oil and gas sector to enter the world of DeFi, bitcoin and crypto markets by making contingent sources commercially recoverable. Making PermianChain the meta-grid for a digital energy economy, says El-Masri. 

PermianChain’s native token, the digital energy currency (DEC) and the first compliant natural asset security token (NAST), the BROX Token issued by Brox Equity, are live within the PermianChain ecosystem. 

For the first time ever, PermianChain will be showcasing an exclusive demo of its digital energy market and natural resources tokenization platform on the 9th of November 2022 at the Web3 & Blockchain World (W3B) in Toronto, Canada, co-hosted by the Blockchain Research Institute (BRI), a global independent blockchain think-tank, and MCI Group, the world’s largest engagement agency.

Bahrain regulated CoinMENA, a crypto asset service provider – category 3 license holder has partnered with Carlton Real Estate, a Bahrain-based real estate agency, that allows investors in the Kingdom to purchase real estate property using crypto assets. Under the partnership, the leading Bahrain-based real estate broker will accept stablecoins like USDT and USDC.

CoinMENA is a leading crypto asset service provider – category 3 that is regulated and licensed by the Central Bank of Bahrain, serving the Middle East and North Africa (MENA) region. The trading platform allows retail and institutional investors access to digital assets investments and directly connects their bank accounts with their CoinMENA wallets to facilitate quick and frictionless money transfers.

 Carlton Real Estate, a Bahrain-based company established in 1996, is a certified broker with a RERA-Bahrain license and offers a wide range of real estate services to corporate and individual clients throughout the Kingdom of Bahrain.

“We are pleased to diversify the payment options for our customers, as we always strive to keep pace with the best modern technologies in terms of management, financing, and brokerage. We are proud to be the first real estate brokerage company in the Kingdom to accept crypto asset transactions for property purchases and other real estate services through our partnership with CoinMENA – the crypto asset service provider licensed by the Central Bank of Bahrain” said Ali Adnan Mahmood, Deputy Managing Director of Carlton Real Estate. 

CoinMENA Founders Talal Tabbaa and Dina Sam’an commented in a joint statement, “We are delighted to partner with one of the leading real estate brokerage companies in the Kingdom of Bahrain, Carlton Real Estate, to facilitate transactions via cryptocurrencies. As adoption continues to grow in the region, we see significant opportunities to use cryptocurrencies to purchase real-world assets. Crucially, this partnership also signals to the market that cryptocurrencies are maturing and gaining mainstream acceptance as a viable medium of exchange.

As per a recent news report Standard Chartered backed institutional cryptocurrency exchange and brokerage firm focused on institutions, is expanding into Abu Dhabi in 2023. Abu Dhabi will be Zodia Markets first presence in the MENA region as it targets growth opportunities.

Zodia went live in July 2022 in the United Kingdom. U.K.-based Zodia Markets is a sister company of Zodia Custody, the digital assets safekeeping platform. Both firms share the same majority shareholder in SC Ventures, the venture arm of Standard Chartered.

At the time of its launch in UK the firm, was granted Financial Conduct Authority approval, with spot trading of bitcoin (BTC) and ether (ETH). 

Zodia Markets has drafted an application to operate in Abu Dhabi but plans to submit a new one in early 2023 after extended talks with regulators.

Chief executive Usman Ahmad told Financial News London that Abu Dhabi is attractive because it has been “forward-looking with respect to putting the regulatory framework in place”.

The United Arab Emirates has sought to capitalize on the lack of clear crypto regulations in Europe and the USA. Abu Dhabi adopted a virtual asset regulatory framework in 2018 through ADGM (Abu Dhabi Global Market), as did Dubai in 2022 with its VARA regulatory authority. 

Siemens Energy in its belief that progress on clean energy solutions will provide golden opportunities and socio economic benefits has partnered with Abu Dhabi Investment Office to accelerate the journey to net zero with the Middle East Innovation center that will focus on Blockchain for energy applications among others.

Under the partnership, Siemens Energy will receive support to set up its Middle East Innovation Centre in Abu Dhabi, as part of ADIO’s AED 2 billion (USD 545 million) Innovation Program that creates growth opportunities for businesses in the emirate.

The center represents one of four Siemens Energy-established global Innovation Centers, with other locations in Orlando in the United States, Shenzhen in China, and Berlin in Germany. These hubs are designed to bring customers, industrial partners, and academia together, and act as incubators for new startups, and technologies.

The Siemens Energy Innovation Center will be located at the Khalifa University campus in Abu Dhabi, where Siemens Energy can share the right tools, skills, and broad experience to unleash the talent of young engineers.

The Innovation Center will strengthen specialized skillsets and create up to 75 high-skilled jobs in Abu Dhabi by 2025. Siemens Energy will also offer at least six internships annually to students from Abu Dhabi universities, of which 50 percent of the interns will be Emiratis.

As per the announcement, the focus is on co-creating decarbonization technologies in the areas of Power-to-X, Decarbonized Heat and Industrial Processes, Condition-based Service Interventions, Energy Storage & Fuel Cells, and Blockchain for Energy applications, among others.

Eng. Abdulla Abdul Aziz AlShamsi, Acting Director General of ADIO, said: “As the UAE makes strides toward our net zero goal, we are prioritizing the development of pioneering technologies to meet the demand for sustainable energy. The partnership between ADIO and Siemens Energy will enrich the energy technology ecosystem with the introduction of new ideas and solutions that open pathways for the global energy transition. ADIO will continue to partner with innovation-driven companies in high-impact sectors to help them reach the next stage of their growth.”

Dietmar Siersdorfer, Managing Director UAE and Middle East, Siemens Energy, said: “To accelerate decarbonization and reach net zero faster, we need to leverage partnership and innovation. As one of four globally, this Siemens Energy Innovation Centre in Abu Dhabi, in collaboration with ADIO, will enable us to leverage the rich industrial ecosystem in Abu Dhabi, and work with startups, academia as well as public and private companies to develop and commercialize new technologies that will make a meaningful impact on carbon reduction.” 

The launch of the Innovation Centre not only aligns with the goals of 2022’s COP27 in Egypt but supports the vision for 2023’s COP28 in the UAE, which aims to increase global climate action, while maximizing the economic benefits both regionally and globally.

Siemens Energy is also working with UAE ADNOC on the same goals using blockchain technology.

It is not surprising that a Blockchain Fintech startup such as Abu Dhabi based Pyypl would raise $20 million in its Series B round from new and existing investors. Since its inception UAE based Pyypl with offices out of Hub71, has not only advocated financial inclusion but has built its technology to ensure it. It was name the one of the top 37 crypto startups to watch in 2022 by Techround UK.

About 22 per cent of the GCC’s population is unbanked, compared with 60 per cent in North Africa, according to a report by consultancy Strategy&.

Blockchain enabled Pyypl provides digital payments and financial services for all smartphone users to carry out online transactions, without the need for a bank account or credit card. 

Pyypl uses advanced Artificial Intelligence (AI) and Machine Learning (ML) for regulatory compliance, Anti Money Laundering (AML) and Counter Terrorism Financing (CTF). They are a full blockchain-native financial services backend-platform, having developed the technology themselves.

Their platform conducts real-time Politically Exposed Persons (PEP) and sanctions (both country and individual) screening against latest and historical UNSC, USDT, FATF, OFAC, and EUCFSF records, as well as all local databases.

Initially Pyyple was regulated and operational in both Abu Dhabi ADGM in UAE as well as in Bahrain. On its website it states that it has received authorization in Kenya, Mozambique, Kazakhstan, and is in preparations to expand to other countries. On its website its posts that the company is currently preparing for operations in Nigeria, Sierra Leone, Egypt, Saudi Arabia, South Africa, Tanzania, Oman, Qatar, Uganda, Namibia, Jordan and Kuwait. In previous months it began hiring in preparation for its Oman launch. Pyypl aims to be in 20+ markets within the next five years.

Through Pyypl’s platform, it is able to connect any smartphone owner into the formal financial system. Pyypl’s card services have been used by its rapidly expanding customer base at thousands of merchants globally, in over a hundred different currencies, by customers from over a hundred nationalities.

With connections to numerous global financial institutions facilitating cross-border money transfers, Pyypl’s solutions also cover many key remittance corridors in the region.

Pyypl recently became the first-ever company in the Middle East to deploy a “Blockchain On-Demand Liquidity” solution for its customer cross-border transfers, in partnership with Ripple, who also recently awarded the company with a prestigious “2021 Global Visionary” award . Earlier in 2021, Visa and Pyypl announced a Middle East and Africa Strategic Partnership Agreement, further positioning Pyypl as a leader in the region’s FinTech sector.  

With $78 billion in remittances in 2020 from Saudi Arabia and United Arab Emirates (UAE) combined, the Middle East and North Africa (MENA) region is home to two of the top three remittance corridors in the world. The region is also undergoing a fast-moving shift to digital and boasts one of the world’s most progressive financial regulatory environments.

Prior to the recent $20 million Series B round, Pyypl had raised $18.5m in its Series A round from a diverse group of investors from Europe, the US, Asia and the Middle East, including UAE-based venture capital company Global Ventures. At the time, the Pyypl app had been downloaded 2 million times since its launch in 2021, with the company growing to 150 employees.

The latest round brings total investment to close to $40 million, the company said, and will enable it to expand across the Middle East and Africa (MEA) as well as product development and new features of the company’s proprietary technology.

LaraontheBlock had spoken to Antti Arponen, CEO of Pyypl on expansion plans in Oman. He noted, “Our latest fund raise from earlier this year is being used to turbocharge Pyypl’s growth in our core GCC markets and expand into new ones – including Oman. Oman and the GCC region in general, are very competent, top-grade jurisdictions globally. Yet the relatively high proportion of people who are financially underserved makes it ripe for FinTech innovation. Oman’s young, tech savvy population is demanding digital payment solutions that work globally, and Pyypl wishes to contribute to growing a financial ecosystem in the country that can meet these expectations.”

He added that ultimately Pyypl’s aim was to reach 1 billion smartphone users in the MEA region. He stated, “Pyypl’s fast and secure digital payments services are already available at the tap of a smartphone screen in multiple MEA markets. Ultimately, our aim is to reach the 1 billion smartphone users in the MEA region.”

MasterCard Start Path Program chooses two of the newly announced seven start-ups from UAE. They include Abu Dhabi digital asset exchange Fasset, as well as Dubai based TBTM (Take Back the Mic) Studios which is building the world’s first blockchain-based media fintech, turning culture into currency by rewarding fans and compensating creators for building communities around great content.

In July 2022, Middle East and UK crypto exchange Fasset announced its collaboration with Mastercard to expand its financial reach in Indonesia, after the exchange raised $22 million USD. Fasset currently has operations in Bahrain and the United Arab Emirates. Fasset was granted authorization by the Central Bank of Bahrain to test asset tokenization in the country’s fintech regulatory sandbox.

MasterCard in its endeavor to enhance user experience in NFTs, Blockchain gaming and metaverse has chosen to collaborate with innovative fintech entities working in the Web3 and crypto sphere. 

MasterCard is providing through its program an express lane for Web3 and crypto startups to grow and an ecosystem for them to thrive. As per the press release, “Through the Mastercard Start Path global startup engagement program, we work with digital asset, blockchain and cryptocurrency-based companies that share a vision to make blockchain technology and digital assets more accessible. These companies are making strides to bridge the gap between Web2 and Web3 and meet consumers where they are today. We’re welcoming a new cohort of startups to ease access to digital assets, build communities for creators and empower people to innovate for the future through Web3 technologies. These companies will join the more than 350 companies from 40 countries that have participated in Start Path since 2014.”

Other start-ups include Singapore based Digital Treasures Center, U.S. based  Loot Bolt, Quadrata, as well as Uptop in addition to Columbian based Stable.

The newest Start Path cohort will engage in growth-essential opportunities including technology collaboration, mentorship, access to channels and customers, and the opportunity to accelerate their digital asset innovations and expand into new markets. 

Since its inception in 2014, Mastercard Start Path has fielded applications from over 1,500 startups every year and the program has helped more than 350 businesses attract well over $3.5 billion in funding.

Blockchain, digital asset and crypto companies are invited to apply for the Mastercard Start Path Crypto program.

Capex.com, which already holds a brokerage license in Abu Dhabi’s ADGM FSRA has now been granted an in principle approval for a cryptocurrency license from Abu Dhabi Global Markets.

CAPAX.com’s Founder and CEO, Octavian Pătrașcu, revealed that the new license will strengthen the brokerage platform’s cryptocurrency offerings in the lucrative Middle East and the North Africa (MENA) region. He stated on LinkedIN, “We are happy that we can start this new vertical under Capex.com and become closer to our main goal of offering a powerhouse of trading for our users, under one roof.”

Crypto approval came in addition to the broker’s existing license from the ADGM Financial Services Regulatory Authority (FSRA), gained in 2020, with which it offers traditional trading instruments.

Capex platform’s offerings are primarily trading services with forex and contracts for differences (CFDs) instruments of other popular asset classes. The platform quickly added crypto products as well, with the rising popularity of the asset class. It even expanded its cryptocurrency portfolio over the years, adding more assets.

The brokerage brand also strengthened its presence in the MENA region with several prominent hirings. Earlier this year, it added Fadi Reyad as a Market Analyst specific for the MENA region and Abdelhadi Laabi as MENA Chief Marketing Officer.

UAE Everdome, the interplanetary metaverse project will be launching its first rocket to Mars in December 2022. Everdome espouses 500,000 community members and partners including names like OKX crypto exchange, Alfa Romeo F1 team, and Pierre Gasly as well as others.

As per the announcement the  rocket launch represents a significant milestone in the development of the metaverse, gradually taking this new digital frontier from a frequently misunderstood concept to tangible reality.

 Everdome located in the United Arab Emirates at Hatta mountains, is where their web3 pioneers will embark first to their interplanetary spaceship ‘’Everdome Cycler’’ and then onwards to a new outpost for humanity on Mars. 

The rocket launch stage will see the earliest Everdome supporters and adopters, named “Tier-1 Evernauts”, embark from the Hatta Spaceport to the Everdome Phoenix (EVR Phoenix), a spaceship design inspired by imaginable and viable technologies , created in collaboration with the project’s space scientist partners.

This Everdome Phoenix will then rendezvous and dock with the immense Everdome Cycler in Earth’s lower orbit, a 3km long interplanetary vessel which will propel the first interplanetary metaverse community to their new settlement on Mars.

Everdome’s city on Mars is placed in Jezero Crater, a location chosen by NASA for its contemporary space missions. Once arriving in Everdome city, the pioneering Evernauts will enjoy multiple storylines and experiences, encompassing adventure, entertainment, learning and trading in this virtual, hyper-realistic metaverse space.

The city includes various land plots in six distinct districts, all offering specific possibilities for related brands, businesses, personalities and individuals to engage with old and new audiences alike in immersive experiences previously impossible in the confines of web2.

Everdome will be streaming this milestone launch live via YouTube for the world to witness the true potential of the metaverse, uniting both web2 and web3 audiences in a visual demonstration of the internets’ future.