A New crypto asset broker receives license in Bahrain

A New crypto asset broker receives license in Bahrain

Homegrown Bahrain based ARP Digital has received a Category 3 crypto asset service provider licensed by the Central Bank of Bahrain. A category 3 license allows ARP Digital to offer crypto trading service as an agent and as a principle as well as offering custodial and investment management services.

ARP Digital provides accredited and institutional investors the requisite, tools, products, and services to effectively allocate capital to the digital asset space. ARP Digital combines best-in-class structuring capabilities with sophisticated quantitative research to deliver investment solutions for investors looking to build a strategic allocation to the digital asset space in a fully integrated way.

As per their website, ARP Digital customers include, accredited investors, family offices, institutions, asset managers, crypto exchanges, and crypto miners.

ARP Digital will be the sole provider in Bahrain specialized in over-the-counter services for structured digital asset products.

With the availability of structured digital asset products, a bridge is ​being built between traditional and cryptographic financial services.

At the heart of ARP Digital’s mission is the provision of comprehensive trading, custody, and portfolio management services. As per their website ARP Digital offers investors the ability to buy tokens, options, and structured products using wire transfers or on-chain transfers.

The team behind ARP Digital includes Yusuf Alireza, a former Goldman Sachs titan with a storied two-decade tenure and historical designation as the institution’s⁣ inaugural Arab partner, offers a blend of traditional and innovative investment strategies.

In addition is Abdul Aziz Kanoo, who previously held the position of regional director for Amber Group business in MENA. Prior to Amber Group, Abdulaziz worked in various Venture Capital Funds in New York and Dubai including Fin Capital, Palm Drive Capital, and BECO Capital. His Brother Yusuf Kanoo also a director, served as a fintech executive at the Bank of Bahrain and Kuwait (BBK) and a data analytics professional at MARF Group, where he was responsible for utilizing big data for strategy formulation and process optimization.

Yusuf Alireza’s believes that digital assets are the most consequential financial services innovation in the past two decades.

CoinMENA a licensed crypto broker in Bahrain also holds a Category 3 license. While Binance is the only crypto exchange in Bahrain to hold a category 4 license. Binance with its category 4 license can offer full crypto exchange services.

Institutional investors lead all time high in crypto volumes at CoinMENA

Institutional investors lead all time high in crypto volumes at CoinMENA

In a recent LinkedIn post, Talal Tabbaa, Co-Founder and CEO at CoinMENA, a regulated crypto broker in both UAE and Bahrain noted that the crypto exchange witnessed all-time high in crypto trading volume in February 2024.

As he stated, “CoinMENA hit an all-time high in trading volume this February, surpassing January by 80%. January itself set a record with a 64% increase from December.”

Interestingly he added that the majority of this volume came from institutions, family offices, and high net worth individuals. He adds, “The majority of this volume came from institutions, family offices, and high-net worth individuals. Retail is picking up, but nowhere near 2021 levels. Google Trends and Coinbase App Store ranking confirm similar trends. 2024 could be the biggest year in bitcoin yet because this is unprecedented in the history of finance.”

His comments on increased institutional interest is backed up by Philippe Bekhazi, CEO of XBTO global who recently told Fastcompany ME media platform that there’s a clear uptake in institutional investments in the international and UAE cryptocurrency markets, with 64% of institutions planning to increase their digital asset allocations in the next three years.

“This maturing market environment influences institutional investors by offering a diversified and technologically advanced investment landscape, enabled by the entry of specialized and regulated digital asset players in the UAE ecosystem,” says Philippe Bekhazi, CEO at XBTO Global.

Tabbaa believes that for the first time, increasing demand is meeting fixed supply. He gives example of ETFs which are alone purchasing over 11,000 BTC, while the daily issuance of Bitcoin is 900 BTC. So there is an obvious shortage.  

This is not just happening in the MENA region, rising bitcoin (BTC) prices have revived a crypto trading frenzy in South Korea, with volumes on local exchanges crossing those in the local stock market. Local media reported that trading volumes on South Korea-based crypto exchanges totalled a record 11.8 trillion won (KRW) on Sunday, or $9 billion at the going USD-KRW exchange rate. These topped Friday’s South Korean stock trading volume of 11.47 trillion won, or $8.7 billion.

CC Data noted that In February, the combined spot and derivatives trading volume on centralized exchanges rose 2.28% to $4.73tn as trading activity remains at a heightened level with Bitcoin nearing new all-time highs.

Tabbaa explains, “ETFs are buying up 12x the daily supply of bitcoin. The halving coming up in April will cut the daily issuance to 450 BTC. Bitcoin price is 9% away from an all-time high. Eventually, everyone will want access to the best-performing asset class in the world.”

He believes that given that Bitcoin price is at an all-time high, and the halving is 36 days away, increasing demand will meet decreasing supply.

With Bitcoin at $73,000 it seems he just might be right!

Stc Bahrain to offer Blockchain Web3 infrastructure services in Bahrain

Stc Bahrain to offer Blockchain Web3 infrastructure services in Bahrain

Stc Bahrain, the Saudi telecom subsidiary in Bahrain, announced that it will be offering Web3 infrastructure services using blockchain in partnership with LionsCraft for the Bahrain market. Lionscraft provides cutting-edge technology and business consulting in the thriving Web3 space.

This collaboration marks a significant step in integrating stc Bahrain’s telco capabilities into the blockchain industry facilitating the introduction of the most innovative products and services, and setting new benchmarks in regional digital evolution.

As per the release, the expansion is aimed at nurturing the advancement of the digital economy and improving the experience of internet users.

The signing ceremony was held in the metaverse in stc Bahrain tower while the agreement itself was deployed as an NFT ( Non Fungible token) on the Avalanche Blockchain.

. Additionally, the partnership agreement itself is deployed as an NFT (non-fungible token) on the Avalanche network. Within its metadata, there is hash linking to the signed contract, enabling users to authenticate the NFT’s origin and validity.

stc Bahrain chief wholesale officer Mr. Saad Odeh commented on the partnership, saying, “Web3 is progressively solidifying its form. While it may be perceived as another iteration of the internet, it represents a generational shift. stc BH will offer several Web3 infrastructure services, serving as a cornerstone to enable dynamic user experiences while ensuring greater data sovereignty and privacy to internet users. We are thrilled to contribute to establishing the groundwork for the future and spearheading the transformation of the digital experiences in MENA region.  We are committed to executing our mandate of empowering the next phase of digital transformation in alignment with the Bahrain Economic Vision 2030.”

Lionscraft CEO Dr. Adilah Hussien added, “Lionscraft is delighted to partner with stc Bahrain, harnessing our collective expertise to forge the path for Web3 innovations. This collaboration represents a shared vision for a decentralized future, where empowerment and user-centric design lead the digital narrative. Together, we are laying the foundational stones for an ecosystem that prioritizes trust, autonomy, and the seamless integration of blockchain technologies into everyday digital interactions.”

In December 2022, stc Bahrain became the first telecom operator in Bahrain to accept cryptocurrencies through its partnership with Eazy Financial Services, a leading Bahraini Payment Services provider specializing in POS and online payment gateway. In addition stc Bahrain collaborated with AlephZero, a layer 1 blockchain that allows the deployment of Web3 applications quickly, securely and at low cost for its Hackathon called CTRL+Hack+ZK.

Bahrain Economic Development Board now a member of Swiss Crypto Valley Association

Bahrain Economic Development Board now a member of Swiss Crypto Valley Association

The Swiss based Crypto Valley Association; a nonprofit crypto and blockchain ecosystem announced that the Bahrain Economic Development Board, which focuses on attracting investments to Bahrain, has become its latest member.

As per the announcement, the association noted, “We are beyond excited to announce Bahrain Economic Development Board (EDB) as our newest corporate member!”

Bahrain Economic Development Board collaborates with government bodies and investors globally to identify and cultivate mutually beneficial opportunities, actively contributing to Bahrain’s economic diversification and sustainable growth.

The Crypto Valley Association is known as Switzerland’s leading blockchain & crypto ecosystem. It has been fostering collaboration and growth in the global blockchain ecosystem since 2017.

Bahrain was the first country in the GCC to incorporate crypto exchanges under a regulatory regime. It currently has three licensed crypto exchanges and brokers, including RAIN, Binance and CoinMENA.

It seems Bahrain is gearing towards attracting more crypto and blockchain companies to the country in 2024.

UAE to apply IMF New draft methodology for virtual assets

UAE to apply IMF New draft methodology for virtual assets

IMF discussed its new draft methodology for the supervision of virtual assets during a recent fintech roundtable organized by the International Monetary Fund (IMF) staff, in collaboration with the UAE Executive Office of Anti-Money Laundering and Counter Terrorism Financing. Interestingly the methodology project was financed by a number of countries including Qatar and Saudi Arabia.

In attendance were participants from 15 countries including Bahrain and Saudi Arabia.

Hamid Al Zaabi, Director-General of the EO AMLCTF, stated, “The UAE continues to raise the effectiveness of its regulatory framework for VAs and VASPs to attract innovative firms and keep out illicit actors seeking to exploit the global financial system. We are delighted to partner with the IMF team to give supervisory authorities across the world the opportunity to strengthen international cooperation and be part of the design process of an important new methodology for VA/VASP supervision”.

Chady El Khoury, Deputy-Division Chief of the Financial Integrity Group within the Legal Department at the IMF, noted the broad consensus among participants on the need for urgent actions to mitigate the potentially significant ML/TF risks emerging from VA and VASPs.

He explained, “It is critically important that countries carry out robust AML/CFT risk-based supervision of VASPs, and that assessing the associated ML/TF risks is the starting point of an effective AML/CFT supervisory regime.”

Participants at the workshop identified a range of issues, including a lack of capacity and resources for supervisory agencies and data collection/analysis gaps. They agreed on the need for strong collaboration among AML/CFT supervisory agencies and upgrading existing ML/TF supervisory risk assessment models to accurately assess VA and VASPs.

In the absence of a clear solution to deal with data collection and related gaps, supervisors may need to rely on models that are more tuned into the inherent risks that VASPs pose with the decision on whether to incorporate data (e.g., transaction level analysis on VA flows) on a case-by-case basis. Finally, a more connected and active community for collaboration between AML/CFT VA and VASP supervisors would help countries to better understand and address cross-border ML/TF risks.

Over the coming months, IMF staff will follow up with participants and incorporate feedback on the methodology. Once finalised, the methodology will form part of the Legal Department of the IMF’s CD toolkit that the organisation will start providing to countries by mid-year 2025.

The methodology was developed under a project that is financed by a donor-supported Canada, France, Germany, Japan, Korea, Luxembourg, the Netherlands, Qatar, Saudi Arabia and Switzerland trust fund to finance CD in AML/CFT at the IMF with excellent support from the UAE to host the event.

R3 Blockchain Bolsters its presence in GCC with relocation of its Head of partnerships to Abu Dhabi

R3 Blockchain Bolsters its presence in GCC with relocation of its Head of partnerships to Abu Dhabi

R3 Blockchain is establishing itself more in the GCC and MENA region, with Bryan D’Souza announcing his move to Abu Dhabi as Business Development and Partnerships Manager in the Middle East.

As D’Souza noted on Linkedin, “I’m delighted to finally announce my move to Abu Dhabi with R3, where I will lead Business Development and Partnerships in the Middle East. After extensive travel between London and the GCC, the prospect of making Abu Dhabi my home is thrilling as I embark on this exciting new chapter.

He adds that he is excited to collaborate with GCC’s thriving financial services ecosystem. According to D’Souza, the GCC stands out as a forward-thinking hub of progress due to its dynamic blend of tradition and innovation, as well as a remarkable ability to execute on transformation.

He will be working to flourish digital economies and align with national visions of Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, Oman and Jordan, helping these countries to realize their financial sector developments including banking and capital markets transformation.

R3 will be working with Central banks, FMIs, commercial banks, FinTech, providing practical groundbreaking solutions for digital assets tokenization and regulated digital currencies, including CBDCs.

Last month Bryan D’Souza discussed his fruitful visit to Kuwait.

R3 has been a strong proponent in the Middle East and GCC region working with governments and enterprise on several projects, most prominently the CBDC projects in Saudi Arabia and UAE.

In addition the Qatar Financial Centre Authority and R3 signed an MOU to develop and grow Qatar’s fintech industry using technologies such as DLT (Distributed Ledger Technology) back in April 2023.

D’Souza stated after his visit to Kuwait, “I am thrilled to have experienced my first trip to Kuwait over the last couple of days as part of a mini GCC tour. I am grateful for the warm welcome from our great partners and potential clients. The hospitality of the Kuwaiti people left a lasting impression; warm, friendly, and eager to collaborate.”

He added, “Exciting opportunities ahead and looking forward to returning back to Kuwait soon!”

MENA crypto broker exchange CoinMENA receives full license from Dubai regulator serving retail clients

MENA crypto broker exchange CoinMENA receives full license from Dubai regulator serving retail clients

CoinMENA has just become one of the first crypto broker from the MENA region to receive a full VASP (Virtual asset service provider license from VARA). As per the license CoinMENA can offer crypto broker services to institutional investors, qualified investors and retail clients.

With this CoinMENA becomes the 10th VASP to receive a license from Dubai’s regulator. CoinMENA already has a license in Bahrain and serves clients across the MENA region.

In August 2023 MENA CoinMENA came out with a new marketing campaign announcing that as a licensed exchange it is serving more than 250,000 users across 8 countries including Bahrain, UAE, KSA, Kuwait, Oman, Qatar, Iraq and Egypt, stating its intentions to expand its base.

Still not to receive are Binance, Bybit, and Crypto.com, while BitOasis has been removed totally from VARA’s registered VASP list.

This comes after M2 launched its operations out of Abu Dhabi.

UK metaverse company Luminous Group raises $1.2 million and sets up presence in the Middle East

UK metaverse company Luminous Group raises $1.2 million and sets up presence in the Middle East

UK headquartered Luminous Group, which provides immersive training programs, using metaverse technologies has raised $1.2 million from North East venture fund, and Mercia as its sets up a presence in the Middle East.

As per the release, the funding will enable the Luminous Group to roll its technology out to a wider audience and create 10 new jobs in the year ahead. It comes as the company is set to open a third office in the Middle East to support its growing client base in the region.

Luminous has already won a major contract from a leading Middle East energy company and recently opened an international office in Bahrain. It plans to open an office in Saudi Arabia later this year, and launch a global marketing campaign. The funding will also enable it to further enhance its platform to make it fully ‘self service’, enabling companies to create their own training programmes, and to launch a new marketplace where training providers can sell their own content.

The Luminous XR (extended reality) platform – which incorporates augmented, mixed and virtual reality – enables users to create training programs quickly and efficiently and track students’ progress. The system, which is ideal for energy companies and manufacturers, can recreate real-life situations including hazardous environments in a safe and repeatable way.

Luminous is run by Ben Bennett, CEO, and Nigel Hope.. Mercia Ventures first invested in 2017 to help it develop the platform. The latest round is the third to date and brings the total received by the company to over £1.9m, which includes funding from the NEVF and Mercia’s EIS funds.

Ben Bennett said: “While it is still early days for the ‘metaverse’, VR and XR technologies have matured significantly and the launch of Apple’s first mixed-reality headset next year is expected to boost awareness and drive global demand. The funding received from Mercia puts Luminous in a strong position to capitalize on that.”

Chris McCourt of Mercia Ventures said: “Current training techniques used in industry are expensive and outdated. Immersive training in a virtual environment could significantly improve performance but creating such programs has been challenging until now. The Luminous XR platform is enabling much wider adoption. This latest investment will enable the company to scale its business and become a global leader in XR training.”

3,000 Bahrain retailers now offer crypto payments with Binance Pay

3,000 Bahrain retailers now offer crypto payments with Binance Pay

Binance Pay has announced that it is now offering its cryptocurrency transaction platform with over 3,000 Bahrain retailers. Binance pay is working with online as well as physical store to offer secure crypto payments.

The Bahrain retailers include names such as Sharaf DG, the electronic retailer in Bahrain. In addition to local fast food chain Jasmis, as well as STC Bahrain, LuLu HyperMarket, Dose Café, Al Zin Jewellry, Salmabad, Wadi Al Sail and Hawar, petrol stations, Pet Arabia, Premier Motors Showroom, Reebok store and many more.

As per the announcement, “With the continuously growing adoption of blockchain technology and digital currencies, this revolution is just the beginning. Be part of it by supporting these merchants and making a transaction the Binance way!”

In January 2023 Binance celebrated its official entrance into Bahrain. Binance received its official license in October 2022. On entrance Binance Pay partnered with Bahrain Eazy Pay to introduce crypto payments for Bahrain real estate developer Bin Faqeeh Real estate Investment.

Binance also launched crypto futures products in Bahrain after receiving regulatory permission.  With this Binance Bahrain BSC became the first regulated exchange in the region to offer these services and the only exchange with a CAT4 license.

This came after Binance suspended its crypto debit card services in Latin America and the Middle East from Aug. 25. The crypto debit card services in Latin America and the Middle East were terminated Sept. 21, but the exchange claimed refunds and disputes could still be processed until Dec. 20, 2023.

Bahrain ABC Bank goes live with JP Morgan’s Blockchain payments

Bahrain ABC Bank goes live with JP Morgan’s Blockchain payments

Bahrain based ABC bank after two years of piloting, J.P. Morgan’s Coin Systems, a blockchain based permissioned system that serves as a payment rail and deposit account ledger and sits within Onyx by J.P. Morgan has gone live with the blockchain payments solution.

Prior to this ABC bank had been piloting GCC region’s first blockchain based cross border instant payment solutions as well as CBDC project with the Central Bank of Bahrain. In 2020 The Central Bank of Bahrain collaborated with J P Morgan and Bank ABC in a pilot scheme to introduce instantaneous cross border payment solution leveraging state of the art technology and digital currency. The pilot was successfully completed in 2022. 

As such the soft launch of the new blockchain payment service by ABC Bank, is in close collaboration with the Central Bank of Bahrain.  The Central Bank of Bahrain has supported the project by integrating and scaling the blockchain payments solution within the Kingddom’s payments landscape.

On this occasion, His Excellency the Governor of the Central Bank of Bahrain, Mr. Rasheed AlMaraj, stated, “After working closely with JP Morgan and Bank ABC over the past two years to experiment the execution of cross-border commercial transactions between Bahrain and the U.S., leveraging the J.P. Morgan Coin System, we are pleased to witness the soft launch of this innovative banking solution by a Bahraini-based bank.  This initiative aligns with the CBB’s strategic vision to embrace innovation and digitalize the Kingdom’s financial services sector by eliminating inefficiencies that exist in traditional cross-border payment railways, facilitating trade between Bahrain and the U.S., and thereby inducing economic activity. We commend Bank ABC on their commitment to enhance their banking offerings by leveraging advanced global technologies.”

Mr. Sael Al Waary, Bank ABC Group CEO, said: “As an international bank operating across five continents, Bank ABC Group is committed to introducing innovative products to our home market and across our wider network. Offering high-value cross-border payments via the J.P. Morgan Coin Systems service, allows us to reduce traditional settlement periods considerably as well as being more cost-effective for our clients. We remain steadfast as a key enabler of Bahrain’s vision for a digital economy. We would like to thank our partners the Central Bank of Bahrain for their commitment and leadership and J.P. Morgan for their leading role in advancing cross-border payments for banking services.”

Naveen Mallela, Global Head of Onyx Coin Systems, said “Bank ABC has been one of the earliest adopters of the JPM Coin offering and we are delighted to launch the first of its kind commercial payment offering between J.P. Morgan and Bank ABC using distributed ledger rails. This enables cross-border commercial transactions to be executed between Bahrain and US corridors instantly, atomically and with certainty.”

While the offering has been launched with USD and locations involving Bahrain, US, UK, Singapore, Hong Kong, additional locations and currencies, notably Euro, are in the pipeline. Going forward with the planned introduction of programmable payment offerings, it will enable mutual corporate clients to leverage event driven and automated payouts enabling a dynamic and real time treasury management.