UAE now has two crypto hubs and two blockchain crypto asset associations

UAE now has two crypto hubs and two blockchain crypto asset associations

The Abu Dhabi Finance Week witnessed a lot of announcements including Abu Dhabi Global Market (ADGM) crypto hub the second crypto hub in UAE after Dubai’s Digital Assets Business Group and the crypto center in Dubai Multi Commodities Centre DMCC in Dubai. 

As per the announcement, given the rapid emergence of new virtual assets such as cryptocurrencies and other related assets, ADGM is leading the way to introduce progressive frameworks and regulations around these technologies and developments.

The launch of “Abu Dhabi Crypto Hub” is therefore an important representation of the strategic initiatives taken by ADGM in support of economic diversification and the growing role of Abu Dhabi as a financial hub, addressing the current and future needs of the market through innovative technologies.

Crypto Abu Dhabi served as a vital platform to facilitate the assembly of the global crypto, blockchain and decentralized finance entities and elaborated on some of the most disruptive financial technology of our age, while also discussing and planning the long-term growth and development goals of an exciting, dynamic and forward-looking sector of the financial industry.

This also comes after Abu Dhabi launched its own Middle East, Africa & Asia Crypto & Blockchain Association (MEAACBA) backed as well by ADGM. As per the announcement it was seen as a pivotal step forward in the development of accessible, transparent, and compliant crypto-blockchain ecosystems.

The non-profit member-driven organization has cross-industry representation with a focus on education, coordination, and innovation for participants across the crypto and blockchain ecosystem.

  • Jehanzeb Awan (Chairman)
  • Richard Teng – Regional Head of MENA, Binance
  • Stuart Isted – GM, MEA, Crypto.com
  • Ola Doudin – CEO & Cofounder, BitOasis
  • Basil Al Askari – Co Founder and CEO, MidChains
  • Joseph Dallago – CEO and Co-Founder, Rain Financial
  • Dapo Ako – MD, J. Awan & Partners

Board Chairman, Jehanzeb Awan, stated “We are dedicated to educating the global community and helping all businesses succeed and thrive. This will be delivered by industry experts sharing knowledge through webinars, courses and events. The Association will also promote responsible innovation through its ‘Moon-shot’ lab to which all participants can contribute.”

Ahmed Jasim Al Zaabi, Chairman of ADGM, commented: “The decision by MEAACBA to incorporate in ADGM is a clear acknowledgment of the progressive regulations ADGM has built, to enable the development of technological innovation in crypto. We look forward to working closely with MEAACBA to support the development of crypto and blockchain ecosystems. We strongly believe that the Association will positively contribute towards bolstering Abu Dhabi and the UAE’s digital economy and adoption.”

MEAACBA membership is open to all companies and individuals across the Middle East, Asia, and Africa involved with the blockchain and crypto ecosystem, including exchanges, custodians, consulting firms, technology developers, digital asset traders, and NFT/ Metaverse firms.

Just two months prior, Dubai’s Digital Assets Business Group (D2A2) was launched by Dubai Chamber of Digital Economy. As per the announcement at the time, the group aimed to strengthen the digital asset industry’s role in the economic development of the UAE and the wider Middle East region, enhance digital business infrastructure and support the growth of digital companies in Dubai.

His Excellency Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, Chairman of Dubai Chamber of Digital Economy, emphasized the formation of D2A2 as a strategic move aligned with Dubai Chamber of Digital Economy’s strategy, which aims to fast track the growth of Dubai’s digital economy.

D2A2 was touted to be an important reference providing strategic and up-to-date market research data related to the digital asset sector to industry stakeholders, the private sector, policymakers and government entities.

Gaurang Desai, Chairman of D2A2, said: “We see an opportunity to turn Dubai and the UAE into a regional hub for digital assets. That is why it is very important to work towards creating a bridge for the digital asset industry to further integrate into the world economy by cooperating with counterpart organizations across the world. We wish to welcome all experts in the industry to come and join D2A2, to help us spread the principles of accountability, integrity and transparency, and promote the highest professional and ethical standards. D2A2 will reinforce the digital asset industry’s commitment to society by educating the public and developing tools to bolster the access to and advancement of technology for all. It will also support the digital asset industry’s efforts to improve quality, the environment, and energy management and investor protection.”

So where does the Crypto Oasis ecosystem come in to all of this? It was the first ecosystem to be launched in the UAE to help promote blockchain and crypto companies and regulations. Ralf Gabischnig told LaraontheBlock, “We have just started to accept memberships into the Crypto Oasis ecosystem and I believe every association or ecosystem has its own target. I believe in cooperation and doing all we can to grow a small markets together into a very big market.” He hopes to expand their scope to include the entire UAE and MENA region.

So while the world grapples with the events of FTX exchange and its aftermath, the UAE continues to build its crypto blockchain economy and we might see more associations pop up in other parts of the UAE.

UAE ADGM courts launches blockchain commercial judgements for international trade and commerce

UAE ADGM courts launches blockchain commercial judgements for international trade and commerce

UAE ADGM courts have launched the first ever introduction of blockchain technology for the global enforcement of commercial judgements during the Abu Dhabi Finance Week (ADFW) witnessed during its Fintech Abu Dhabi Festival.

The blockchain solution will result in substantial time and cost savings for parties in the enforcement of their commercial judgments. Secure, immutable judgments will be immediately available to parties and enforcing courts, via ADGM’s website, an API or directly on the blockchain for member courts. Parties will no longer need to wait for a certified copy of the judgment to start the process in the enforcing jurisdiction. This is a major development for international trade and commerce.

Commenting on this transformational development, Linda Fitz-Alan, Registrar and CEO of ADGM Courts states, “Our vision has always been to massively transform the delivery of judicial services through technology. Our focus has now turned to enforcement to respond to the pressing needs of the international business community, and to drive sustainable change for the justice sector. This trailblazing introduction of blockchain technology for commercial courts underscores ADGM and ADGM Courts’ reputation as leaders in the digitization of justice.

A month earlier the DIFC (Dubai International Financial Centre) courts announced the launch of its Blockchain enabled global digital vault, Tejouri. The Tejouri vault built on Hedera Hashgraph blockchain will enable the upload and secure storing of documents ranging from insurance contracts, title deeds, Wills, and financial certificates, to images and multimedia files and can be utilized by all individuals globally.

Access to all data will be restricted to the ‘vault holder’ and the listed intended recipients, guaranteeing zero knowledge proof privacy principles. At the time His Excellency Justice Omar Al Mheiri, Director, DIFC Courts, said: “In our new digitally driven societies, we are all accumulating mass amounts of important documentation, whether it is for professional, or personal purposes. tejouri has been engineered to help address issues of storage and security of these documents and to enable individuals to now transfer this data to one secure location. The DIFC Courts, together with its public and private sector partners, is proud to be able to offer this distinctive service to the public, and to help contribute to a safer digital environment for all.”

UAE Blockchain enabled Fintech payments entity raises in total close to $40 million USD to expand

UAE Blockchain enabled Fintech payments entity raises in total close to $40 million USD to expand

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.”

Abu Dhabi Finance Week inaugurates Crypto Abu Dhabi

Abu Dhabi Finance Week inaugurates Crypto Abu Dhabi

For the first time ever Abu Dhabi Finance week organized by ADGM in association with Abu Dhabi Department of Economic Development (ADDED) will be holding Crypto Abu Dhabi on November 16th 2022.

Abu Dhabi Finance Week (ADFW)’, is set to run between 14th November 2022 and 18th November 2022.

As per the event synopsis, Crypto Abu Dhabi in partnership with Roland Berger, will explore the next era of Digital Assets as the technologies experience the growing pains involved with shaping true innovation. The agenda of the conference will focus on the underlying blockchain and cryptography technologies that drive the innovation, and why financial products are served by their application.

The event will also focus on how major global financial institutions are now developing digital asset strategies, and how the tokenization of private market assets will open up a new multi-trillion dollar democratized opportunity for investors globally, and why regulation is on the horizon.

Some renowned speakers include, Changpeng Zhao, Founder & CEO, Binance, Henri Arslanian, Co-founder and Managing Partner, Nine Blocks Capital Management, Brett Tejpaul, Head of Institutional, Coinbase, Jaime Leverton CEO, Hut 8 (Bitcoin Mining), Herve Francois, partner Private Equity, Blockchain and Digital Assets, at Investcorp among other well renowned names.

Dr. David Chaum, CEO and Co-Founder of Elixrr will also be speaking on the theory behind digital currency and why it is an essential evolution for the financial sector and where it goes from here, in Digital Money 2.0.

There will also include a special announcement by globally renowned Economist, Dr. Nouriel Roubini, Chairman of Roubini Macro Associates

Another interesting discussion will be on how key Abu Dhabi Financial institutions view digital assets which will be held by a panel led by crypto exchange Coinbase.

Commenting on the launch of ADFW, H.E. Ahmed Jasim Al Zaabi, Chairman, ADGM stated, “As I look back on the past successes of Fintech Abu Dhabi’s Editions, and head to what comes next, I see us amid an exciting transformational era. We are on the cusp of a new, digital future, and making progress on a continuum of highly significant and progressive economic challenges. Harnessing these exciting opportunities regionally and internationally is of prime importance to ADGM. This pioneering edition of the ADFW looks to achieve that and couldn’t have been timed better.”

The UAE Crypto and Blockchain ecosystem employs 7000 people and DeFi is the next growth segment!

The UAE Crypto and Blockchain ecosystem employs 7000 people and DeFi is the next growth segment!

UAE Crypto Oasis ecosystem published its first annual report entitled the “Crypto Ecosystem in the UAE” with the collaboration of Roland Berger. The report highlighted the growth that the UAE has witnessed in its blockchain crypto ecosystem which has resulted in the employment of 7000 people across 1400 blockchain crypto entities currently operating in the country.

As per the report the number of blockchain crypto organizations is more than 1400 in total where 66 percent are native organizations and 34 percent are non-native. Saqr Ereiqat, Co-Founder and Managing Partner of Crypto Oasis Sentio, the investment arm of Crypto Oasis, told LaraontheBlock, “Based on the information we have the blockchain crypto ecosystem in UAE has employed approximately 7000 people.”

These 1,400 plus ventures are leveraging distributed ledger technologies and related technologies to build and provide new value propositions with Blockchain innovation. Interestingly the report confirms that the UAE is now home to 21 crypto exchanges including big names such as Binance and FTX who are now fully regulated under VARA (Dubai’s Virtual asset Regulatory Authority).

Another interesting finding in the report is the registered location of these blockchain and crypto entities. The majority 489 are based out of DMCC (Dubai Multi Commodities Centre) which was one of the first free zones to develop a crypto center. Interestingly IFZA (International Free zone Authority) houses 150 crypto and blockchain entities, while the Dubai World trade Centre, the home of VARA houses 48.

DeFi one of the biggest sectors in the blockchain crypto space is also mentioned in the report. As per the report DMCC has noted that the total value locked into DeFi protocols was $20 billion at the start of 2021 and increased exponentially to $260 billion by the end of the year.

It is also expected that the global DeFi market will hit $507.92 billion by 2028. The report notes that DeFi projects in the UAE include decentralized platforms that allow you to store, exchange or use assets. While the report mentions news where some platforms will allow POS terminals that will allows DeFi to reach the masses in the UAE.

The ADGM (Abu Dhabi Global Market) recently opened its fifth regulatory laboratory sandbox program inviting fintech organization to pitch their ideas on decentralized applications. This is further stance than DFSA; the regulatory arm of DIFC has taken. DFSA recently came out with its crypto feedback statement where it notes that it will not be undertaking anything in DeFi so far.

Finally according to Roland Berger global survey it found that creating a crypto economy strategy is of high priority for 60 percent of executives. While the top three leading sectors in crypto are telco and tech, automotive, transport and logistics, and Construction & Real Estate.

UAE Venom Blockchain now has its own Virtual asset Exchange, Venomex

UAE Venom Blockchain now has its own Virtual asset Exchange, Venomex

UAE based Venom Blockchain which recently received a license from ADGM ( Abu Dhabi Global Market)  in early October 2022, now has a regulated virtual asset exchange on its roster, Yoshi Markets,  renamed to Venomex.

In March 2022, Yoshi Markets previously known as Arabian Bourse Limited (ABX), received the Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). The FSP allowed Yoshi Markets to operate as a Multilateral Trading Facility (MTF) and Custodian for virtual assets.

Now Yoshi Markets has renamed itself to Venomex, reflecting the recently approved Venom Blockchain platform, which will allow the provisioning of virtual assets and blockchain based services. Venom blockchain is building the first NFT marketplace in the UAE from ADGM as well as the issuance of first fiat backed stablecoin.

Mustafa Kheriba, the Executive Chairman of Venomex, stated, “This is an exciting time for us at Venomex. The new name and brand will further position Venomex as an entity that aims to harness the potential of Virtual Assets and Blockchain in a much more impactful manner. With the new name, we plan to unveil services that will have multi-faceted use cases and benefits for our customers and strategic partners alike.”

Arshad Khan, CEO of Venomex, added, “We are extremely happy to announce the new name. As the Virtual Assets landscape is shaping up in the UAE, owing to the clarity of regulations and emergence of multiple ventures in this space, we see the rebranding initiative as the first step towards becoming an end-to-end ecosystem player. I would like to thank the Venomex shareholders and the FSRA for their continuous support and guidance.”

Venomex Limited is a Multilateral Trading Facility (MTF) and Custodian, based in Abu Dhabi Global Market (ADGM) and has received FSP from Financial Services Regulatory Authority of ADGM. As a virtual asset MTF and Custodian, Venomex aims to be a preferred venue for virtual assets listing, trading, settlement and custody and will offer a fully integrated ecosystem to institutional, HNI and retail investors.

Venom Blockchain gets ADGM license and becomes the first to build NFT marketplace and Fiat backed stablecoin

Venom Blockchain gets ADGM license and becomes the first to build NFT marketplace and Fiat backed stablecoin

UAE ADGM ( Abu Dhabi Global Market) announced on LinkedIn that Venom Blockchain has become the first ADGM licensed crypto foundation to build a scalable blockchain platform. ADGM also stated, “Venom is on its way to developing an NFT marketplace, derivative exchange and fiat-backed stablecoin”

The statement adds that Venom Foundation is set to become one of the most anticipated blockchain phenomena, enriching the ADGM community and the nation as a whole!

As per the news Venom Foundation perpetually works on providing an abundant bundle of scalable blockchain-powered products and services for the wider financial community. Through robust security measures and a rich database, Venom Foundation has produced an array of self-sufficient tools, including ewallets, decentralised exchanges and more.

The statement then adds, “Subject to the relevant regulatory approvals, Venom Foundation will work with ecosystem participants to ensure that such products are offered in a compliant manner within the trusted and well-regulated environment of ADGM.”

ADGM’s UAE virtual asset regulator in Abu Dhabi,  FSRA (Financial Services Regulatory Authority) of ADGM ( Abu Dhabi Global Market) had recently announced enhancements on its capital markets framework, allowing for the trading of NFTs  (Non Fungible tokens) on virtual asset regulated platforms, This means that MTFs/Custodians (Multilateral trading Facilities) operating within ADGM are now able to seek approval from the FSRA to engage in Non-Fungible Token (NFT) activities.

It would seem that Venom is the first fruit of this new framework.

Prior to the announcement Venom Foundation released their press release, where they stated that, “Venom Foundation has been registered as the first crypto foundation in the ADGM, with a license to operate a blockchain and issue utility tokens. ADGM is well known as a fintech oasis for investors and financial services firms in the region and from around the globe. The next essential step of Venom Blockchain – its launch – will be announced soon.”

Venom blockchain is an asynchronous blockchain technology of dynamical sharding, that has made a leap in blockchain technology development globally, bringing to the market boundless scalability, and higher security guarantees with decentralization.

Venom Foundation has  three core directions, such as Essential Infrastructure, Support of Inbound Projects, Developer-friendly Platform, each to offer novel solutions for solving earlier existing issues in the crypto market.

As per Venom news,  the most valuable feature for the MENA region market is the technology that enables major corporations and companies to conduct an easy and secure transition into Web3 globalization, managing the gross data transaction flows without faltering by increasing fees and transaction times.

Venom Foundation’s main priority is to develop and support a self-sufficient blockchain ecosystem and it has already yielded significant results: non-custodial Wallet (VenomWallet mobile application and Desktop Browser Extension) with a Multisig accounts option and Ledger support, VenomScan (to keep everything transparent with access to transactions history), VenomBridge (allowing the interchain transactions to be made fast, while low price), VenomPools (to stake on Validator nodes), VenomGet (an easy gateway to Venom tokens), Web3.World (native decentralized exchange) has been built.

Venom also mentioned that individual developers, companies, and government authorities will be able to engage Venom Foundation to establish new products such as NFT marketplace, Derivative Exchange, fiat-backed stablecoin, and many others to come with the potential to become a bridge toward wide adoption of CBDC in the UAE, other MENA countries and globally.

Banks will become Dapps and 2022 is a crypto building year

Banks will become Dapps and 2022 is a crypto building year

The chairman of Belobaba, a crypto native hedge fund with a regulated security token, believes that Banks will become Dapps, and that this was the year of building crypto not a bearish year.

Five year old, Belobaba utilizes big data and AI in its investment decisions… The company is currently setting up its headquarters in the UAE as it seeks to get regulated in GCC region. The hedge fund is already regulated by the Gibraltar Financial services commission and operating legally in the USA, as well as in Spain and Estonia.

Lluís Mas, chairman at BELOBABA spoke to LaraontheBlock expressing his views on the crypto market,the banking sector and why they are setting up their headquarters in UAE.

The hedge fund which currently has just $5 million under management is seeking to grow and expand. According to Mas, “I don’t consider it a bad year for crypto and I wouldn’t call it a bullish or bearish market, because just remember in the bearish markets of 2017-2019 Uniswap was created as were NFTs. For me this year is a building year as we see Ethereum merge and global regulations pick up.  Companies like Black Rock are entering the crypto space and financial actors such as Coinbase are offering crypto products to institutional investors. So for me it is definitely a building year.”

He also states that it is absolutely unfair to talk about a crash of Bitcoin. He says, “Bitcoin is at $20,000 today, it is a far cry from where it started out. We also see billions of dollars being invested in esports, DeFi and blockchain with many projects performing well.”

While he doesn’t foresee any significant changes in the crypto market in the next few months, he does see a pick-up in the middle of 2023.  Mas states, “While I don’t see much change in the crypto scene today, what I do know is that Ethereum is super cheap, and things should start to pick up in mid-2023.”

When touching on the topic of banking and its evolution, Mas mentions a well-known phrase in the crypto community, “ Banks are necessary but bankers not” As he explains, for some time bankers have not been taking care of their customers, which has led to the rise of neo banks. For him the future of banks is Dapps. He explains, “ Banks will slowly become dapps first they have the money and collateral, secondly they are working hand in hand with regulators, so in the next few years they will move to decentralized applications. Bitcoin is not here to destroy, but to make things more efficient and more user friendly. This is unstoppable and our role is to educate as many people as possible.” 

According to Belobaba chairman Dapps stand as the new paradigm and DeFi represents a change in the business model of traditional banking giving the opportunity to put the user at the centre of the value model. 

He notes that the banks of the future will not be huge with 1000 employees, but might be as small and nimble as entities such as Uniswap which has just a dozen or so employees. 

While Belobaba seeks to build one day a crypto bank, the company is also bullish on NFT gaming industry which will reach $800 billion by 2024. Belobaba also sees Security token offerings as a huge opportunity given it has grown by 84 percent. As for crypto, it is expected to become a $24 trillion market by 2030.

In terms of expansion, Belobaba is moving its headquarters to Dubai UAE, and are in the process of seeking a license. Mas says, “We are working with local partners to move our headquarters here. There are two reasons for our move; first given we are originally from Spain, the GCC as a geographic region is a comfort zone. In Gibraltar we are accustomed to the Commonwealth laws, as is the situation in UAE.”

He adds that the region is connected to Asia and other continents, and most in the region are open to investing.

While it might not be easy to get a license says Mas, he is confident that given their track record and strong partnerships such as that with RSM their efforts will be fruitful. He explains, “We are actively looking into Abu Dhabi regulatory ADGM, VARA in Dubai and Bahrain.  RSM is a global network of audit, tax and consulting experts that help us ensure our investors are protected.”

Recently Belobaba invested 1 million Euros in Team Queso, a leading esports club in mobile gaming.

Abu Dhabi’s virtual assets regulator First MENA regulator to allow NFT trading

Abu Dhabi’s virtual assets regulator First MENA regulator to allow NFT trading

UAE virtual asset regulator in Abu Dhabi,  FSRA (Financial Services Regulatory Authority) of ADGM ( Abu Dhabi Global Market) has enhanced its capital markets framework, allowing for the trading of NFTs  (Non Fungible tokens) on virtual asset regulated platforms, This means that MTFs/Custodians (Multilateral trading Facilities) operating within ADGM are now able to seek approval from the FSRA to engage in Non-Fungible Token (NFT) activities.

As per the news, these are considered significant enhancements to its capital markets framework, across spot commodities, securities, derivatives, benchmarks, environmental instruments and virtual assets that will further improve on its innovative and progressive regime and leadership in financial markets.

Alongside its innovative approach to virtual assets, the ADGM has now implemented its regulatory framework for spot commodity and environmental instrument activities, making it the first international financial centre in the MENA region to do so

Ahmed Jasim Al Zaabi, Chairman of the ADGM, said, “The ADGM wishes to thank all those who responded to the consultation paper released earlier this year. The degree of interest shown in the consultation, as well as the keen interest by participants looking to undertake activities in these significant new areas, is hugely positive. Collectively, the ADGM and its market participants continue to provide regulatory and industry leadership, positioning the ADGM and Abu Dhabi as the jurisdiction of choice. These enhancements to our capital markets framework will unlock the next stage of investment and growth opportunities, across commodities, environmental instruments, virtual assets activities and wider financial markets.”

Prior to this announcement, ADGM’s FSRA had also announced that stablecoins could now be traded on virtual asset platforms. As they stated, ADGM will only permit those tokens where price stability is maintained by the issuer holding the same fiat currency it purports to be tokenizing on a fully backed 1:1 basis. This therefore currently prevents the use within ADGM of other types of stablecoins, such as algorithmic stablecoins.

While VARA (Virtual Assets Regulatory Authority) based out of Dubai continues to license virtual asset exchanges such as Binance with full licenses, it has yet to set its framework for the regulation of NFTs or stablecoins.

Despite this the UAE remains one of the most advanced virtual asset regulated hubs globally.

eToro receives crypto investment broker in principle approval from Abu Dhabi’s ADGM

eToro receives crypto investment broker in principle approval from Abu Dhabi’s ADGM

eToro,  social investment networks  has received an In-Principle Approval to operate as a securities, derivatives and crypto broker in Abu Dhabi, UAE.

The Financial Services Permission from the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM), approval will enable eToro to establish a base from which to offer its services to customers across the region.

 

eToro allows users to view other investors’ portfolios and statistics, and interact with them to exchange ideas, discuss strategies, and benefit from shared knowledge. Users can hold traditional assets such as equities, currencies, ETFs, or commodities, alongside newer assets like cryptoassets. eToro also offers its users a choice of how to invest, as users can trade directly themselves, invest in a portfolio, or replicate the investment strategy of other investors on eToro’s platform at no extra cost, with a single click.

Arvind Ramamurthy, Chief of Markets at ADGM, said, “We are pleased that eToro has been awarded an In-Principle Approval by the ADGM and are excited to support them as they work towards establishing their foothold and presence in Abu Dhabi, the capital of the UAE. ADGM is the largest regulated jurisdiction of virtual assets in the MENA region and eToro’s participation will add to its vibrant and trusted ecosystem of virtual asset trading venues, global exchanges and service providers.ADGM will continue to actively expand the business offerings and unlock new investment opportunities in the UAE, and enable investment platforms partners like eToro to support the growing financial needs of the investors and businesses across the region.”

 

Jason Hughes, Senior Executive Officer, UAE at eToro said, “This is an important milestone for eToro. The UAE has one of the most vibrant fintech landscapes in the Middle East, and Abu Dhabi one of the most sophisticated regulatory frameworks for digital assets. We’re incredibly proud to be joining this ecosystem. We look forward to working with the ADGM to obtain our full licence, and, in turn, expanding our services to investors in the UAE and further afield. We recently opened our office in Abu Dhabi to support this expansion and are looking forward to growing the team locally.”

George Naddaf, Regional Manager, UAE at eToro concluded, “eToro’s goal is to provide more people with access to financial markets. With the full licence in place, more investors in the Middle East will gain access not only to global markets, but also a wealth of educational content and the opportunity to share knowledge and discuss their strategy with our community of global investors. We are looking forward to working with our prospective clients and partners in the region.”