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UAE Securities and Commodities Authority receives requests for virtual asset licenses fining non compliant VASPs with $2.7 million

UAE Securities and Commodities Authority receives requests for virtual asset licenses fining non compliant VASPs with $2.7 million

According to a recent news release, The UAE’s Securities and Commodities Authority (SCA) has received licensing requests and inquiries from companies intending to provide Virtual Asset services following the issuance of the necessary regulations. The UAE SCA also announced that those who do not apply for a license either to VARA or SCA will be fined $2.7 million.

The move aims to ensure that all companies that provide products and services related to the Virtual Assets sector in the country are fully regulated, as the SCA’s Board of Directors, chaired by Muhammad Ali Al-Shorafa seeks to strengthen the country’s position by ensuring that the local financial markets are among the best globally.

Dr. Maryam Al Suwaidi, CEO of the SCA, stated that pursuant to Cabinet Resolution No. (111) of 2022 regarding the regulation of Virtual Assets and their service providers, which gave the SCA the mandate to issue regulatory decisions for Virtual Asset transactions and license its service providers; the SCA’s Board of Directors issued the necessary decisions, which requires all companies providing Virtual Asset services based in the country (except for companies licensed in Financial Free Zones) to obtain a license from the SCA.

All companies operating in Dubai must only obtain a license from the Dubai Virtual Assets Regulatory Authority (VARA), which will inform the SCA to have a unified register of all licensed Virtual Asset service providers in the UAE.

She added that the Virtual Assets sector is among the modern technological industries included in the SCA’s strategy as one of the pillars for sustainable growth of the UAE’s financial markets.

The SCA called upon all companies that practice any of the Virtual Assets services to submit a request immediately to obtain the necessary approval to avoid being subjected to appropriate legal measures, which the Authority will initiate during the next stage, which may include one or more of the following: a warning, a fine not exceeding (AED10 million) equivalent to $2.7 million, or referring the violator to the Public Prosecution.

The SCA also urged all investors to refrain from dealing with any company that provides Virtual Assets services before ensuring that it has the necessary licenses and approvals to protect their investments and not expose them to any risks.

UAE Cypher Capital funds Native, a DEX layer for Web3 applications for expansion in MENA

UAE Cypher Capital funds Native, a DEX layer for Web3 applications for expansion in MENA

DEX ( decentralized exchange) layer for retail Web3 applications has partnered and received funding from UAE based Cypher Capital VC fund to grow Native’s financial Web3 offering in the MENA region.

Native offers a game-changing solution that transforms exchanges into an integrated feature. With Native, any application can swiftly transform itself into a fully functioning exchange, seamlessly integrating top-tier liquidity providers and generating substantial trading fees.

This strategic partnership will provide Native with the necessary resources to advance its product development efforts, placing a strong emphasis on flexibility, modularity, and interoperability.

Bill Qian, Chairman of Cypher Capital, expressed his enthusiasm for the partnership, stating, “We are delighted to invest in Native, an innovative financial infrastructure layer. Native’s exceptional capability to empower applications to establish their own exchanges in minutes, seamlessly integrate top-tier liquidity providers, and generate trading fees is truly remarkable. This strategic partnership and funding agreement will further bolster Native’s product development, with a strong focus on flexibility, modularity, and interoperability. By providing projects with complete control over their swap experience, from the user interface to the pricing model, Native simplifies the complexity of underlying smart contracts and APIs. The result is an elevated user experience, increased capital efficiency, deeper liquidity, and a significant new revenue stream for applications. We firmly believe in Native’s vision and are excited to embark on this transformative journey together.”

Meina Zhou, Cofounder of Native, commented “We are thrilled to announce that Cypher Capital has invested in Native. This strategic investment will provide us with the necessary resources to advance our product development and expand our platform’s reach in the MENA region. Cypher Capital’s investment is a major step forward in realizing Native’s overall vision of building crypto’s modular DEX infrastructure. It also aligns with NativeX’s aspirations to establish itself as the leading DEX for Altcoins across DeFi. We look forward to the exciting opportunities that lie ahead as we revolutionize the world of DeFi.”

US Blockchain deposit token entity built on Corda sets up in Abu Dhabi UAE to offer borderless finance

US Blockchain deposit token entity built on Corda sets up in Abu Dhabi UAE to offer borderless finance

US blockchain deposit token infrastructure provider which ues Corda by R3 to bring CBC deposit token infrastructure , Fluent Finance has expanded into the MENA region with the opening of its operations in Abu Dhabi, UAE under the new name, Fluent Economic Bridge. Fluent Finance will offer trade finance and cross border payments with the support of UAE Ministry of Economy.

Fluent Finance’s new UAE entity, named Fluent Economic Bridge, will be focused on deposit token infrastructure, promoting cost-effective and borderless trade finance between Abu Dhabi banks and global markets. The company is currently procuring a trade license from Abu Dhabi Global Market (ADGM), an integral part of Fluent’s mission to offer dependable digital asset services to its UAE partners and the global trade community.

On twitter, Fluent Finance stated, “ We’ve expanded into the MEA region, setting the stage for the next chapter in UAE’s FinTech innovation, delivering our leading-edge deposit token infrastructure to Abu Dhabi.” 

They add,  “ The newly formed Fluent Economic Bridge in the UAE is central to this initiative. We’re set to enable cost-effective, borderless trade finance between Abu Dhabi banks and global markets, contributing to the UAE’s global trade expansion. Deposit Tokens will herald the next chapter of UAE’s Fintech Innovation, transforming trade finance and improving cross-border settlements.”

Fluent Finance is a US-based blockchain development and fintech company that is building deposit token infrastructure to help bring trade finance on-chain. Fluent’s primary product is Plus, a stablecoin backed by a consortium of banks to ensure reliable and verifiable liquidity. Fluent aims to connect DeFi and TradFi without sacrificing the core tenets of Web3.

Fluent Finance’s CEO, Bradley Allgood, has meticulously evaluated jurisdictions worldwide before deciding on UAE as the prime location for Fluent’s expansion. He has offered his insights across multiple roundtable discussions organized by Hub71 to optimize the regulatory sandbox for global trade finance and payment infrastructure.

“The UAE has positioned itself as a global leader for digital assets through their special economic zone initiatives, regulation foresight, and global trade expansion with strategic Memorandums of Understanding (MoUs)”, says Allgood. “We use Corda by R3 as our enterprise layer to bring CBDC-compatible deposit token infrastructure for borderless payments, complementing the UAE as they lead the charge on digital transformation.”

He adds, “I am very much looking forward to seeing deposit tokens improve trade throughout developing regions. With transparent and borderless settlement available to any wallet in the world, those most affected by war or climate change with soul bound tokens could get immediate delivery of aid around the clock, any day of the year.”

Deposit tokens, a novel form of digital assets, offer an innovative alternative to conventional stablecoins. Unlike stablecoins, which are pegged to traditional fiat currencies, deposit tokens are backed by actual deposits and issued by banks, offering more transparency, security, and stability to users.

The recent Memorandums of Understanding (MoU) between the UAE and other global partners like India and China marks a significant milestone in fostering a closer financial relationship between the nations. These MoUs account for more than $100 billion in bilateral trade, with a focus on strengthening the use of new technologies and settlement with digital currency. Deposit tokens issued by commercial banks are poised to offer a borderless missing link to accelerate trade settlement to CDBC.

UAE Crypto Oasis ventures to support Dubai’s DIFC innovation hub and startups

UAE Crypto Oasis ventures to support Dubai’s DIFC innovation hub and startups

UAE based Crypto Oasis Ventures has signed a Memorandum of Understanding (MoU) with Dubai International Financial Centre (DIFC),  to support the DIFC Innovation Hub with subject matter expertise for their ongoing and upcoming start-up accelerator programmes.

This coincides with Crypto Oasis Ventures official opening of its second office in the DIFC Innovation Hub for its Venture Studio.

“We are thrilled to partner with Dubai International Financial Centre (DIFC), a renowned financial hub known for its regulatory excellence and commitment to fostering innovation,” said Faisal Zaidi, Co-Founder and CMO of Crypto Oasis Ventures. “By establishing our office within the DIFC Innovation Hub, we aim to leverage The Centre’s vibrant ecosystem, collaborate with like-minded organisations, and explore new opportunities for growth.”

DIFC is a leading global international financial centre that plays a pivotal role in driving economic diversification and innovation in the region. As a strategic partner, DIFC will provide the Crypto Oasis Ventures ecosystem with access to a network of global investors, industry experts, and regulatory resources. This collaboration will facilitate the development of cutting-edge blockchain solutions, positioning Crypto Oasis Ventures at the forefront of the digital transformation in the financial sector.

Mohammad Alblooshi, Chief Executive Officer of DIFC Innovation Hub commented: “The DIFC Innovation Hub has a long history of partnering with leading and visionary institutions to enable business growth for our start-up ecosystem. This partnership will bring immense value to start-ups participating in our various accelerator programmes this year who will be able to leverage on Crypto Oasis’s expertise to amplify their existing business models.” 

“We are pleased to see Crypto Oasis expand their presence here in Dubai at the DIFC Innovation hub as they continue to innovate and drive growth in collaboration with our vibrant community of tech and innovation disruptors”, he added.

Crypto Oasis Ventures has spearheaded several successful ventures, including Crypto Oasis Labs, Crypto Oasis Sentio, arte, Crypto Oasis Games Guild, Inacta Communications, and The Green Block. These ventures showcase the company’s commitment to innovation, collaboration, and sustainable development within the Web3 space.

Brinc launches its 2023 startup Web3 cohort with two startups from GCC

Brinc launches its 2023 startup Web3 cohort with two startups from GCC

Brinc, a leading global venture accelerator, with operations in the UAE has selected 25 promising global startups, launched by a total of 66 founders, for its Summer 2023 cohort under its host of Web3 accelerator programs. Two startups from the GCC region have been selected. The first is UAE AI NFT BentleyRecords.io , an AI-powered music development program dedicated to helping artists grow their career online, offering 35+ tools for music production and distribution was chosen among startups and the second one is Bahrain based Eye Labs, a pioneering platform dedicated to guiding brands into the Web3 realm, simplifying blockchain infrastructure while emphasizing storytelling and user journeying to make the transition more accessible to a wider audience.

Brinc’s Summer 2023 cohort represents a diverse range of innovative ventures at the forefront of cutting-edge technologies in blockchain, decentralized applications, and peer-to-peer networks. This round is Brinc’s third cohort in Web3-startup acceleration, confirming its commitment to the incredible potential that blockchain technology and online ecosystems offer to all areas of decentralized business.

From more than 700 applications from across 27 countries received for its various Web3 accelerator programs, Brinc’s rigorous selection process identified 25 startups poised to make significant advancements in their respective industries. The cohort, of startups at pre-seed or seed stage, is grouped under five Web3 verticals: DeFi (4), Entertainment & Loyalty Platforms (2), Gaming (8), Healthcare (5), Technology & Infrastructure (6).

The chosen startups will virtually join Brinc’s 12-week accelerator program, receiving comprehensive support, mentorship, as well as access to resources to scale their growth, elevate strategies, expand their network, and contribute to the advancement of technology-driven solutions. Aligned with Brinc’s company vision to support and maximize positive impact, the Web3 cohort will also be guided on diversity and inclusivity strategies.

The cohort’s Summer 2023 program will feature mentorship and sessions hosted by high-profile industry leaders — including Brinc’s Manav Gupta as well as Animoca Brands’ Robbie Yung and Animoca Ventures’ James Ho. Other program mentors and collaborators include:prominent investors (including Babu SK of True Global Ventures, Prashanth Swaminathan of Woodstock Fund, Sidd Gandhi of Growx); Web3 partners (including Anthony Diaz of Health Hero, Dario Heymann of Galen Growth, Douglas Corley of Alaunius Labs, Ryan Horn of N3ON, Vikash Suresh of Recorem, Yassamin Issapour of Agora Digital Capital Markets); specialized field consultants (including Andy Liu of Basebit Technologies, Robbie Nakarmi of Simmons & Simmons).

Manav Gupta, founder and CEO of Brinc, said: “Our third cohort in the Web3 realm welcomes the 25 selected startups, who bring exciting ideas and breakthrough perspectives to the blockchain space, which continues to evolve and shape our future. We are excited to work with these forward-thinking entrepreneurs to build new business models, propel creative innovation and advance incredible technologies, as well as promote diversity and inclusivity for a decentralized future.”

Brinc’s Web3 program is supported by key industry partners including Animoca Brands, DMCC, Fusang, Zilliqa, Protocol Labs, OliveX, and Prenetics.

UAE Consultancy 10 Leaves accepts crypto payments

UAE Consultancy 10 Leaves accepts crypto payments

In a recent news piece, UAE based 10 Leaves consultancy firms has announced that it is accepting crypto payments.

According to the announcement, 10 Leaves, through it’s technology arm Tenl Technologies, has built up excellent capabilities in the blockchain, DeFi and crypto sectors. From fintech advisory, regulatory sandbox consulting to tokenization and legalities of smart contracts, the 10 Leaves Group is poised to advise  clients on blockchain-related implementations and regulatory licensing across DIFC, ADGM, DWTC, DMCC, Bahrain and Europe (Luxembourg and Lithuania).

“Dubai has demonstrated it’s vision by focusing on new technologies, and as a consultancy with over 17 years in the business, we aim to complement the leadership’s efforts in supporting entrepreneurs and visionaries who will shape our lives in the years and decades to come”, said Rohit Ghai, Founder of 10 Leaves. “Our crypto-related solutions will help startups and established players in this niche space to navigate nascent and complex regulatory requirements, while staying competitive and compliant.” 

“We aim to build an ecosystem of web3-related stakeholders”, added Soumen Ghosh, who has joined the 10 Leaves Group as Partner-Technology. “This includes everyone from early adopters, to startups, tech providers, investors and regulators…to encourage conversations that will lead to contributing towards making the UAE a hub in the blockchain and crypto space.”

UAE top 100 tech investors invested only 4.6% of capital on Blockchain startups

UAE top 100 tech investors invested only 4.6% of capital on Blockchain startups

Deep Knowledge Group, pioneers of big data analytics system and dashboard solutions have published a report on the top 100 tech investors in the UAE of which 4.6% of their investments are in blockchain technology while 2.9% are in Artificial Intelligence and machine learning.

The report makes several findings which include that 50% of the top 100 tech investors are venture capital entities with some of the well known blockchain investors including Crypto Oasis, Shurooq Partners, Seed Group, DisruptAD, Ghad Capital Parners, Mubadala and Ceras Ventures.

More than 50% of the top Tech investors are based out of Dubai UAE with 29% of their investments going to the Middle East startups, 17% going to GCC based entities and 18% in Africa.

74% of the top 100 tech investors have invested less than $10 million per deal, while only 11% have invested over $50 million.

In the last 12 months, Kube VC was the most active in terms of investments which totaled 48, followed closely by Maven Capital with 47 investments, and UAE Ghaf Capital making 20 investments.

The data from the report was gathered from all types of funding rounds, non-equity assistance, investors performance and characteristics were collected and analyzed according to various parameters set forth in Deep Knowledge Group evaluation criteria methodology.

The top 100 Tech investors in UAE have been selected based primarily upon the following criteria, ● number of investments made in DeepTech Companies;  potential for equity and non-equity financing (lead investors in seed/venture rounds); Investors overall background, intangible assets and philosophy;  investor investment activity;  % of successful investments; and  Investment impact on the company.

Within the framework of the given research, data related to over 3,000 investment deals, concluded by top 100 UAE tech investors, were collected. The share of deals concluded in 2022 constituted circa 20% of the total number of investment deals.

Data related to 2,600 portfolio companies, 77% of which are among active portfolio companies, has been gather and evaluated according to the ranking framework as well.

Prior to this report, LaraontheBlock issued a survey in early January 2023 entitled “MENA Investor Survey 2022-2023 for crypto Blockchain sector” found that 50% of those surveyed stated they will be allocating more funds to blockchain and crypto projects and entities in 2023. 19% of those surveyed stated in 2022 they had invested more than 50% of allocated capital and funds into crypto and Blockchain projects.

In June 2023 GCC (Gulf Cooperation Council) and MENA based Investcorp, a global alternative investment firm has led a $15 million investment round for BitMe a Spanish crypto exchange. Included in the list of investors was Telefonica Ventures, Stratminds VC, Cardano, and YGG Fund.While just this week, UAE based Global Millennial Capital Ltd (“Global”), an emerging technology and digital assets investment manager, and venture capital firm launched its Global Millennial Web3 Investment Program, out of UAE which aims to accelerate emerging companies to their full potential in the realm of Web3, DeFi, and Blockchain.

Arab Brazilian Chamber of Commerce and Morocco customs align next steps to using Ellos Blockchain trade platform

Arab Brazilian Chamber of Commerce and Morocco customs align next steps to using Ellos Blockchain trade platform

Arab Brazilian Chamber of Commerce ( ABCC) in a recent visit presented Morocco’s customs entity with the features and benefits of Ellos Blockchain and aligned the next steps to use the platform.

ABCC developed Ellos Platform as a distributed digital ledger to enhance its supply chain documentation, effectively tracking all information regarding any product being sold across the Brazilian and Arab markets, including all commercial, banking, trade, and export transactions from end to end. Buyers will be able to access relevant product information upon scanning a QR code on its packaging, ensuring customer satisfaction and quality of goods. Within the blockchain, stakeholders will be able to review the involvement of manufacturers, transporters, point of sale (POS), and others through immutable data.

Using the highest technology, the Arab Brazilian Chamber of Commerce developed Easy Trade, the Ellos Blockchain system responsible for sending the documents required by the Arab customs authority to clear the cargo in its country.

ABCC that was established back in 1952  aims to bring closer together Arabs and Brazilians through trade and business cooperation, keeps fulfilling its mission in new and innovative ways.

As a major supporter and driver of this relation, the ABCC has adapted and reinvented itself for these new times that call for more agility in trade, lower costs, unending partnerships, and more advanced, safer goods that are manufactured under principles of ethics and sustainability. A such according to its President, Osmar Chohfi , “We’ve established an important platform, Ellos, that uses blockchain technology for digitizing the trade process, thus reducing times and costs. Exports to Jordan have already seen the elimination of paper, and the same will soon happen in trade with Egypt and other Arab countries.”

ABCC has also established an innovation lab the ABCC Lab, taking Brazilian startups to the Midde East and North Africa. ABCC has also opened offices in the United Arab Emirates and Egypt, and will soon launch one in Saudi Arabia.

Chohfi adds, “We’re carrying out together with the Brazilian Trade and Investment Promotion Agency (ApexBrasil), the Halal Brazil project that aims to make Brazilian food companies to supply to Muslim countries, bringing more profits and opportunities for our country, and providing the Islamic nations with the products they demand. Halal manufacturing means manufacturing with sustainability and quality standards.”

Bahrain’s KFH believes Blockchain is significant in enhancing cybersecurity

Bahrain’s KFH believes Blockchain is significant in enhancing cybersecurity

Bahrain’s KFH ( Kuwait Finance House) Information security Manager, Mr. Hasan Muhi emphasized the significance of utilizing blockchain technology applications to enhance cybersecurity in the financial technology sector. He highlighted the potential of blockchain for improved security in financial transactions and protection against fraud and cybercrimes.

During a seminar entitled “ Cybersecrity in Fintech in Bahrain” organized by NGN International Muhi stated that blockchain technology offers significant security advantages by storing financial data in an encrypted manner across a network of devices, making it highly resistant to cyber-attacks.

The seminar was part of the activities of NGN Majlis, which aims to raise awareness about cybersecurity in Bahrain and promote a better understanding of the subject.

As per Muhi’s statements, “Blockchain technology represents one of the latest and most effective methods for safeguarding companies and institutions against the growing risks of cyber threats. These threats include data loss, unauthorized access, and data theft.”

He added, “Blockchain enables robust protection of data, financial transactions, and commercial operations, while facilitating controlled data access, enhancing transparency, and fostering trust among different parties involved. Thus, it serves as an innovative technology to enhance cybersecurity and optimize the financial and operational performance of institutions and companies.”

Muhi emphasized that Blockchain was a vital tool for improving cybersecurity in the Fintech sector through the utilization of “Smart Contracts”. These contracts can be programmed to execute financial transactions securely and reliably without the need for third parties, thereby reducing costs and mitigating risks associated with online financial transactions. Additionally, they enhance trust among various stakeholders involved in commercial and financial operations.

US Department of Justice charges Moroccon national of stealing crypto an NFTs

US Department of Justice charges Moroccon national of stealing crypto an NFTs

In July 2023, the US  Department of Justice on Monday charged a Moroccan national accused of impersonating OpenSea marketplace functions in order to make off with cryptocurrencies and NFTs, including a Bored Ape. Apart from NFTs, Oulahyane is accused of stealing ether (ETH).

Prosecutors accused Soufiane Oulahyane, 25, of defrauding a Manhattan resident and others of approximately $450,000 of digital assets in September 2021.  According to the allegations, the DOJ alleges Oulahyane “spoofed” OpenSea, creating a site that mimicked the real OpenSea to trick customers into logging in and swiping their OpenSea credentials in the process. He allegedly bought “paid advertisements on a popular search engine” to boost the fake page.

“Oulahyane is alleged to have operated a spoof website to gain unauthorized access to victims’ cryptocurrency wallets to steal their cryptocurrency and NFTs,” FBI Acting Assistant Director in Charge Christie Curtis said.

The DOJ charged Oulahyane with wire fraud, aggravated identity theft, affecting transactions “with an unauthorized device” and use of an unauthorized device.

He’s in Moroccan custody. Oulahyane stole a seed phrase from a New York-based victim’s wallet after the victim accidentally landed on the fake OpenSea login page — designed by Oulahyane — and not the actual marketplace. From there, Oulahyane was able to steal 39 NFTs, including their Bored Ape.