The Blockchain Center in Abu Dhabi to launch $100 million Web3 fund with Gate.io ventures

The Blockchain Center in Abu Dhabi to launch $100 million Web3 fund with Gate.io ventures

The Blockchain center in Abu Dhabi, a hub for Web3 and Gate Ventures, the venture capital arm of Gate.io, have launched the Falcon Gate Ventures, a $100 million Web3 fund. This joint venture initiative takes a global stance to support Web3 builders that are committed to reshaping the world in the digital age.

As per the announcement, Gate Ventures and the Blockchain Center synergize their expertise and resources to help young talents from key regions including the USA, Asia, Europe, and the MENA region. Falcon Gate Ventures is designed to advance decentralized infrastructure and applications and accelerate the adoption of pioneering technologies.

The fund will support high-potential projects across the world, with a targeted focus on technical breakthroughs in the Middle East, Asia, the US and other key regions

Falcon Gate Ventures will work closely with international regulatory authorities to develop frameworks that both foster innovation and ensure global user protection.

“Choosing Gate Ventures as our partner for this joint fund was a natural decision for us. Gate Ventures brings a wealth of experience and a proven track record in the blockchain and digital assets space. Their deep industry expertise, combined with their innovative approach to investing, aligns perfectly with our vision at the Blockchain Center in Abu Dhabi,” said Abdulla, CEO of the Blockchain Center in Abu Dhabi. “We believe that together, we can create a powerful synergy that will drive forward our mission to support and scale high-potential blockchain projects. Gate Ventures shares our commitment to fostering cutting-edge technologies, and with their global network and insights, we are confident that this partnership will accelerate the adoption and impact of blockchain innovations, both in the UAE and internationally.”

Leveraging the extensive network and expertise of both Gate Ventures and the Blockchain Center, Falcon Gate Ventures seeks to discover and support projects poised to shape the future of blockchain technology and digital assets.

“Falcon Gate Ventures marks a significant step in our mission to advance global blockchain innovation,” said Kevin Yang, Managing Partner at Gate Ventures. “In partnership with the Blockchain Center in Abu Dhabi, we are investing in the digital future, supporting transformative ideas across continents.”

Falcon Gate Ventures is poised to drive blockchain innovation on a global scale. The venture aims to foster Innovation, accelerate the deployment of blockchain solutions by funding innovative projects and startups worldwide and support Education and Research.

UAE RAK Bank and Bitpanda to offer digital asset services

UAE RAK Bank and Bitpanda to offer digital asset services

The National Bank of Ras Al Khaimah (“RAKBANK”), a UAE bank partners with Bitpanda Technology Solutions, a leading digital assets infrastructure provider, to provide a robust platform that will enable UAE residents to effortlessly manage digital assets, subject to UAE Central Bank approval.

As per the announcements, RAKBANK customers will be able to pursue various digital assets use cases unlocking one of the most complete offerings available in the UAE market. This allows banks to participate in the virtual asset economy without needing to develop their own in-house virtual asset capabilities.

Dongjun “DJ” Choi, Group Chief Customer Officer of RAKBANK commented: “We believe digital assets represent one of the future ways for customers to manage their finances more efficiently and securely. This partnership is poised to fill the gap in the market for a trustworthy and regulated banking platform to deal in digital assets. By merging our expertise, we aim to revolutionize the traditional financial landscape for the benefit of our customers, enabling them to explore a broader range of digital assets opportunities.”

Lukas Enzersdorfer-Konrad, CEO of Bitpanda Technology Solutions added: “RAKBANK has a long history of pioneering crypto innovation in the UAE, and we want to support their ambitions. Bitpanda Technology Solutions is fully modular, enabling us to tailor products to our partners’ needs. This partnership exemplifies the importance of that flexibility. Together, we will transform crypto access for millions in the UAE and lay the groundwork for future innovation.”

Bitpanda Technology Solutions stands as one of the most scalable digital assets infrastructure providers globally. As a highly regulated leader in the industry, it boasts a worldwide footprint and is already trusted by some of the world’s foremost financial institutions, banks, neobanks, and fintechs.

In May 2024, Bitpanda, Austria’s first unicorn company, announced plans to expand to the Middle East, with the launch of Bitpanda MENA with offices in DMCC Crypto Center. Bitpanda will match the region’s ambitions and provide the infrastructure necessary to power future trading growth and unlock digital assets for millions of investors.

At the time Bitpanda noted that Banks, fintech, (neo-)brokers and crypto-native companies in the region will be able to partner with Bitpanda Technology Solutions (BTS) to launch their own trading solutions powered by Bitpanda’s infrastructure in as little as 3 months once Bitpanda MENA has finalized obtaining its local license later this year.

BitPanda already partners with several of Europe’s largest banks, and currently provides the trading infrastructure for over 20 million customers across Europe.

Binance powers Azerbaijan Chain reaction event

Binance powers Azerbaijan Chain reaction event

Binance, a Web3 Blockchain ecosystem and the largest crypto exchange in terms of trade volume, is powering the Chain Reaction, event series organized by FARI Solutions in Baku Azerbaijan. The event will be held from September 10-11th 2024.

The conference is a melting pot of innovation, where the sharpest minds in Web3, crypto, AI and blockchain will converge to push boundaries, share groundbreaking ideas and set new directions for the future. As the globe’s foremost experts, innovators and thought leaders assemble, we extend an invitation for you to join this transformative experience.

Rachel Conlan and Vishal Sacheendran, the respective Global Chief Marketing Officer and Global Head of Regional Markets at Binance, will be speaking at the conference. They will be joined by ministers and government officials such as Inara Valiyeva, Chairwoman, Innovation and Digital Development Agency (IDDA); Fariz Jafarov, Executive Director of the Centre for the 4th Industrial Revolution (C4IR) Azerbaijan; Dr. Angelika Layr, Deputy Director of the Office for Financial Market Innovation & Digitalisation, Liechtenstein; and representatives from Barings, Vodafone, Syz Group, Beincrypto, Jadwa Investment, Dow Jones, EY, Deloitte, among many others.

Chain Reaction 2024 powered by Binance, coincides with the high-energy atmosphere of the Formula 1 Azerbaijan Grand Prix, guaranteeing unmatched exposure and engagement. Partners will have a unique platform to showcase their brands to a diverse audience, while attendees will benefit from exclusive access to industry pioneers and immersive, hands-on workshops.

For those interested in attending they can visit www.chainreaction.farisolutions.com

The announcement comes as Binance has restarted its operations in India.

UAE based 5irechain launches environmentally friendly mainnet

UAE based 5irechain launches environmentally friendly mainnet

UAE based 5irechain, a blockchain platform with a strong focus on sustainability, has announced the public launch of its mainnet following a highly successful testnet phase of 1 million on chain transactions within its first month.

As per the press release, With the mainnet now live, 5ire aims to revolutionize the blockchain industry by showcasing how blockchain technology can be both efficient and environmentally friendly.

The 5ire mainnet is capable of processing up to 1,500 transactions per second, and uniquely, it returns 50% of gas fees to users. This initiative strives to foster a greener future for the web3 space.

5ire’s mainnet is designed to be developer-friendly and employs a Sustainable Proof-of-Stake (SPoS) mechanism. This mechanism rewards users who adopt environmentally conscious practices, thereby emphasizing an ecological-first approach. The platform underscores the potential for a fast, secure, and cost-effective network while maintaining environmental accountability.

Pratik Gauri, CEO and co-founder of 5irechain, emphasized that the mission is to demonstrate blockchain technology as a powerful force for good. By integrating sustainability metrics directly into their protocol, 5ire aims to create a blockchain that is not only fast and efficient but also aligned with global sustainability goals.

5ire’s mainnet features a dual-chain architecture that is fully EVM-compatible, allowing developers to build decentralized applications (dApps) that drive positive impact within the web3 realm. The platform includes features such as a single key that derives both a Substrate-native and an EVM account, ensuring that Ethereum developers can build on the platform with ease.

Gauri highlighted that the company’s primary goal is to build a long-term, sustainable product with a proven track record, rather than chasing the image of a unicorn. The launch of the mainnet, particularly on India’s Independence Day, marks a significant milestone for the company and its team members, many of whom are from India.

Prateek Dwivedi, co-founder and CPO at 5ire, expressed excitement about the innovations that the growing community of developers will bring to life on their network. He highlighted that 5ire is not just another blockchain platform, but a movement towards a more sustainable and equitable future.

UAE Dubai Court of First Instance recognizes crypto as a form of salary payment

UAE Dubai Court of First Instance recognizes crypto as a form of salary payment

In a recent article in Lexology, the UAE Dubai Court of First Instance has ruled in 2024 recognizing the payment of salaries in cryptocurrency under employment contracts. The decision was made in reference to case number 1739 of 2024.

According to Mahmoud Abuwasel from law firm Wasel & Wasel, “This decision, rendered in case number 1739 of 2024 (Labour), represents a notable departure from a previous judgment by the same court in 2023, where a similar claim involving cryptocurrency was denied due to the employee’s failure to provide a precise valuation of the digital currency.”

The case

The case was about unpaid wages and wrongful termination compensation where part of the payments was in EcoWatt tokens. The dispute centred on the defendant’s failure to pay the EcoWatt token portion of the salary for six months and the allegedly wrongful termination of the plaintiff’s employment.

The court recognized and enforced that crypto was a valid form of remuneration, despite the traditional payment norms that typically involve fiat currencies.

The court ruled in favour of the employee, not only recognizing the validity of payment in cryptocurrency but also ordering the payment to be made in EcoWatt tokens rather than converting it into fiat currency.

The court’s decision in 2024 was based on the principle that wages are a right of the employee for the work agreed upon. The court noted that as per Article 912 of the Civil Transactions Law, wages are a right of the worker against the employer in return for the agreed work and the provisions of Article 22 of Federal Decree-Law No. (33) of 2021 on the Regulation of Labour Relations and Article 16 of the Cabinet Resolution No. 1 of 2022 concerning the Executive Regulations of this Decree-Law provide that the employer is obligated to determine the amount and type of wage in the employment contract, and if not, the court shall determine it.

As such the court found that the employer must pay the wages to the workers on the due dates, either through the Wage Protection System (WPS) or any other approved systems, and it is the employer who is tasked with proving the payment of wages to the workers and providing evidence of that. As the respondent did not provide evidence of payment of the claimant’s salary for the claimed period, and since the documents were void of such evidence, the court orders the respondent to pay the claimant [redacted] AED in addition to [redacted] EcoWatt tokens.

Acccording to AbuWasel, “ This ruling marks a significant shift in the court’s approach, demonstrating a greater acceptance of cryptocurrency as a valid and enforceable means of remuneration. It underscores the importance of upholding contractual agreements as long as they are clear, agreed upon by both parties, and not in conflict with public policy or law.”

Abuwasel adds, “ The Dubai Court’s 2024 ruling is a testament to the UAE’s progressive legal environment, particularly regarding the use of digital currencies in employment contracts. The court’s willingness to enforce cryptocurrency payments as stipulated in contracts sets a positive precedent that will likely encourage further integration of digital currencies in various sectors, not just in employment.”

Bahrain Blockchain entity partners with Saudi Industrial tech entity for Intelligent transformation in KSA

Bahrain Blockchain entity partners with Saudi Industrial tech entity for Intelligent transformation in KSA

Bahrain headquartered iBLOCKCHAIN, a Web3 digital solutions provider, has partnered with Saudi Arabian Nesma United Industries, a prominent technology provider for the industrial sector in Saudi Arabia to advance “Intelligent Transformation” within Saudi Arabia’s industrial sector.

The agreement was signed by both chief executive officer Dr. Marwan Gholmieh of Nesma United Industries and iBLOCKCHAIN CEO Eng. Wassim Jarkas.

As per the press release, the initiative aligns with the ambitious objectives of Saudi Vision 2030 and underscores the critical intersection between industrial and technological sectors in the region.

Mr Jarkas emphasised the significance of this partnership, stating, “This unique transformation agreement ushers in a new era of ‘Intelligent Transformation’ rather than just digital transformation. Our collaboration with Nesma United Industries is a testament to their forward-looking vision and commitment to pioneering disruptive changes in the industry. We at iBLOCKCHAIN are proud to lead in this revolutionary approach, setting the stage for unprecedented advancements in both technological innovation and industrial excellence.”

This collaboration will integrate cutting-edge technologies including Web 3.0, big data management, artificial intelligence, advanced data analytics, and Blockchain solutions. The press release adds, “These innovations will not only protect critical data but also ensure transparency and traceability within supply chains, setting a new standard for industrial operations in the region.”

A roadmap has been established, featuring four distinct phases: Discovery, Analysis, Processing, and Execution. This structured approach will guide the successful implementation of the project, ensuring that the partnership delivers on its promise of transformative impact.

Dr Gholmieh expressed his enthusiasm for the collaboration, stating, “This partnership opens up vast opportunities for comprehensive digital transformation. It will significantly enhance our technological and operational capabilities, preparing us to lead in the digital future.”

Echoing this sentiment, Chief Strategy Officer at iBLOCKCHAIN Engineer Sary Qasim remarked, “This agreement represents a big leap forward for both the technological and industrial sectors.”

UAE XRP oil sale deal is false and illegal in UAE

UAE XRP oil sale deal is false and illegal in UAE

The recent story that the UAE and India carried out an oil deal using XRP token over CFT (Crypto trading Fund) ledger, is not only unbacked and false but also illegal in the UAE.

The story which was first published in a media entity called Cryptoalert soon was copied and published as if it was real news.

The cryptoalert piece stated that “In a historic shift, India and the United Arab Emirates (UAE) have completed their first-ever crude oil transaction using their local currencies, effectively bypassing the US dollar. This landmark trade signals a broader strategy, set in motion last July, aimed at promoting trade in native currencies and cutting down on dollar-conversion costs.”

It also stated that the trade was integrated with the XRP Ledger System CryptoTradingFund (CTF), allowing customers to earn cash back rewards in CTF tokens.

The piece did not mention which entities had transacted this crude oil transaction, nor where there any social media posts, press releases or confirmations from either CTF or Ripple on the topic. Yet this did not stop many media entities in the crypto and blockchain ecosystem from publishing the story.

Since then prominent blockchain pundits have noted how media publish false stories to push crypto users to purchase XRP and CFT token.

Ripple is not XRP

“XRP” and “Ripple” are often erroneously used interchangeably. Ripple (previously Ripple Labs) is a company, and XRP is the name of the native cryptocurrency for XRP Ledger, an open-source distributed ledger run by the XRPL foundation.

As such proponents of XRP are distributed across many entities and individuals and not only Ripple which uses XRP ledger in some of its products.

UAE Dirham backed stablecoin

In addition, the UAE Central Bank recently announced its payment token regulation which stipulates that stablecoins, and crypto cannot be considered as legal tender in the UAE. The only stablecoin that the UAE will allow for payments inside the UAE are digital dirham stablecoins.

To date no digital dirham stablecoin has been issued within the UAE. As such it would be not only impossible but also illegal for oil to be sold to another country using a digital asset, crypto other than the dirham stablecoin which is pegged to the UAE Dirham.

XRP recognized in DIFC

The only recognition for XRP in the UAE is within DIFC ( Dubai International Financial Center). In November 2023, two new crypto tokens TonCoin (TON), and XRP joined Bitcoin (BTC), Ethereum, and Litecoin as recognized crypto tokens by the Dubai Financial Services Authority (DFSA), the financial regulatory agency of the special economic zone, the Dubai International Financial Centre (DIFC). The announcement of XRP being accepted into DIFC as a crypto token was published in a Ripple press release.

The DFSA the crypto token regime now includes five crypto tokens that can be utilized by virtual asset firms within the DIFC. Licensed firms will be able to incorporate XRP and TON into their virtual asset services. XRP and TON will be available for use by institutions located in the DIFC to accelerate faster, more efficient global value exchange.

As such the only legal utility for XRP would be in a free zone DIFC to be specific.

UAE regulated crypto custodian Komainu chosen by Nasdaq

UAE regulated crypto custodian Komainu chosen by Nasdaq

UAE regulated Komainu, diigtal asset custodian is now a Core Custodian for Nasdaq’s suite of Crypto Indices. Nasdaq’s Core Custodian requirements are designed to ensure the security and integrity of digital assets.

Key criteria include, bankruptcy remoteness which entails legal protection and segregation of client assets in the event of custodian insolvency,   regulatory compliance which entails licensing by reputable regulatory bodies. Komainu is regulated by Dubai’s Virtual Asset regulatory Authority. Also included in the criteria that allowed Komainu to be chosen is the advanced security practices for private key generation and segregated storage, cold storage, risk management that offers a comprehensive frameworks for operational and custody risk mitigation.

In addition criteria also include asset recovery, auditing, and insurance protection.

“We are pleased to be selected as a Core Custodian by Nasdaq, a testament to our commitment to institutional-grade security and operational excellence. This partnership validates our approach to digital asset custody and aligns perfectly with our mission to become the preferred gateway to digital assets for institutional investors. At Komainu, we’ve built our foundation on the very principles Nasdaq demands, ensuring that institutional investors can engage with digital assets confidently and securely.”

Komainu, was the first VASP in UAE to be granted a full virtual assets service provider license by Dubai’s virtual asset regulatory authority in UAE. The license was issued on August 18th 2023.

The announcement comes as the first Ethereum spot exchange-traded product (ETP) goes live on Nasdaq. The product is called the iShares Ethereum Trust ETF. It can be identified by its ticker symbol ETHA. Nasdaq and BlackRock collaborated extensively, crossing both regulatory and operational hurdles, to successfully launch ETHA.

Tether invests $3 million in Kuwait’s Kem fintech startup

Tether invests $3 million in Kuwait’s Kem fintech startup

Tether Operations Limited, a company in the digital assets domain, and creator of USDT stablecoin has announced a $3 million strategic investment in Kuwait based Kem app, a platform designed for money transfers and financial management.

As per the press release, the investment and collaboration will allow Kem App to introduce USDT on its platform to drive widespread adoption in the MENA region to revolutionize traditional payment systems.

The Middle East and North Africa (MENA) has the sixth largest crypto economy of any region, with an estimated $389.8 billion in on-chain value received between July 2022 and June 2023. This represents nearly 7.2% of global transaction volume during this period.

The announcement notes that with the launch of USDT on Kem app, millions of expats in countries such as Kuwait, Bahrain, Saudi Arabia, Qatar and Iraq will benefit from using USDT and accessible financial services.

The Kem app, enbles seamless cross-border transactions. Tether’s investment underscores its commitment to expanding accessibility and fostering global financial inclusion. This initiative also signifies a strategic expansion into the Middle East market, with Kem serving as a regional asset.

Paolo Ardoino, CEO of Tether, said, “This investment reinforces Tether’s commitment to promoting financial inclusion and stability. We believe that everyone should have the means to protect their families and businesses against inflation while enjoying unrestricted access to financial services. Our investment in Kem App is a testament to this belief, as the platform provides tools that simplify access to the financial system, perfectly aligning with our mission to advance financial freedom for all.”

Stablecoin Growth in MENA

In June 2024, the UAE Central Bank approved the issuance of a regulation for licensing and overseeing stablecoins and a series of policies aimed at supporting the banking, insurance, and financial services sectors. 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 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 reported by CoinMarketCap, the total market capitalization of stablecoins reached $174 billion as of August 2024 – with USDT (Tether), USDC (Circle), and DAI, together accounting for circa 93 percent of the market.

Tether is not the only stablecoin issuer that is trying to enhance its presence in the MENA region. In December 2023, Circle Internet Financial (Circle), and UAE based Fuze, MENA’s digital assets infrastructure provider, to expand adoption of USDC stablecoin in MENA region, after signing MOU (Memorandum of Understanding).

Circle, the issuer of the US-dollar backed stablecoin USDC, will work with Fuze to expand the adoption of USDC amongst new customers in the region, such as banks, fintechs, traditional enterprises and Web3 firms. The scope of the agreement covers the Middle East, Africa and Turkey, paving the way for the expanded use of USDC in these regions and the piloting of new use cases relevant to these markets.

Tether’s investment and collaboration is also setting the stage for Kem to enhance its offerings and better serve millions of underserved businesses throughout the Middle East. By incorporating cryptocurrencies into its platform, Kem aims to replicate the success of financial platforms offering cryptocurrencies in other markets, driving mass adoption and fostering a more inclusive banking landscape in the Gulf region.

Crypto businesses in DMCC increase by 11% since start of 2024

Crypto businesses in DMCC increase by 11% since start of 2024

As the UAE commodities free zone, DMCC announced its H1 2024 performance, it was obvious that the biggest growth sectors came from crypto and technology entities, with their crypto Centre onboarding 64 new companies including 7 virtual asset service providers (VASPs).

As per the press release, the growth in crypto company registrations reflected an 11% growth of crypto entities from the beginning of the year.

In March DMCC announced the number of new companies that enrolled in 2023, with 123 new crypto and blockchain entities registering at the crypto center, culminating in 600 companies in total. Since then the number has increased by 11% which means there are now more than 660 crypto entities in the freezone. such as Bybit exchange and Solana Foundation were some of the new entrants to DMCC.

In 2022, DMCC had announced that it had registered 500 crypto blockchain entities.

Crypto and virtual assets were not the only reason that H1 performance witnessed the registration of 1,023 new members, AI (Artificial Intelligence) and gaming. DMCC registered 14 gaming and nine AI companies.

DMCC is also preparing for the launch of its new AI centre. It has partnered with the Dubai-based artificial intelligence firm Qx Lab AI for the AI center. The AI Centre is anticipated to be the next leading innovation platform for advancing AI adoption and developing real life use cases.

Feryal Ahmadi, Chief Operating Officer, DMCC, added: “At the start of the year we set out to consolidate our position across multiple high-growth sectors. This strategy is now bearing fruit with considerable gains recorded in H1 both in the physical commodities space as well as in technology and services industries.”

DMCC registered companies now total 25,000 companies. the freezone now accounts for 15% of all foreign direct investment (FDI) in Dubai, up from 11% last year, as well as 7% of the emirate’s GDP.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said, “Now accounting for 15% of Dubai’s FDI, our performance in the first half of 2024 demonstrates both the consistently strong investment growth across our district as well as the continued appeal of Dubai as a major global trade hub.”