UAE M2 crypto exchange,custodian and investment platform launches Bitcoin Ethereum yield product

UAE M2 crypto exchange,custodian and investment platform launches Bitcoin Ethereum yield product

UAE base M2, a crypto exchange, custodian, and investment platform for crypto investors has officially launched its international platform, and is offering its first product M2 Earn, that provides yields of up to 10.5% on Bitcoin and Ethereum.

The M2 Earn product available at launch by M2, provides up to 10.5% yield on Bitcoin and Ethereum and investors can calculate their investment yields over a preferred timeframe by using the Earn calculator featured in the app.  M2 investment products and the app have been inspired by extensive industry benchmarking and mirror the rigorous systems of investment banking which are now being applied to the digital asset sector.

Stefan Kimmel, M2, CEO, said: “The arrival of M2 group gives institutional investors, family wealth offices and retail investors the invitation they have been looking for to confidently and securely invest in the fast-growing digital asset sector. The first decade of crypto was marked by the introduction of Bitcoin and the highs and lows of a volatile asset class with a heavy focus on speculation. M2 has been built to give experienced investors exposure to the digital asset sector by offering market leading yields that are based on real returns.”

As per the press release, M2 has to date obtained a license from The Securities Commission of Bahamas (SCB) as a Digital Assets Business and M2 Limited and M2 Custody Limited (M2 ADGM) a Financial Services Permission from the Financial Services Regulatory Authority of the ADGM as a Multilateral Trading Facility (MTF) and for Providing Custody.  Combined, the regulatory bodies offer the most comprehensive and progressive regulatory frameworks for digital assets in the world. Additionally, M2 has initiated licenses in several jurisdictions globally.

The M2 user experience has been designed by investors for investors and aims to eliminate the barriers slowing them down, features available on M2 at launch include:

  • Calculate the Real Yield – the M2 Earn calculator allows investors to easily evaluate what level of returns they can anticipate over 30, 60, 90 days. The Earn calculation you see is the real yield.
  • Set and Earn– The institutional grade Smart Trading features on M2 allows users to execute large buy and sell orders seamlessly, reducing transaction costs and saving users time.
  • Security beyond banking benchmarks – M2 security systems have been designed by cybersecurity experts who operate at the highest-level and all protocols are externally audited.
  • Global Community Support – The M2 support team provides coverage across multiple time zones ensuring 24-hour support for customers.

Marking the arrival of M2, the MMX token (ERC20) will be available to users and feature at the core of the M2 experience. The MMX token is designed to provide onboarded clients with specialized access to specific products and services within the M2 ecosystem that will include the ability to boost yields for M2 earn products (MMX tokens used to boost yields will be burned by M2, making it deflationary). The MMX token will also provide advanced access to new yield products and new digital asset listings. 

M2 plans to make the MMX token available on both centralized and decentralized secondary marketplaces. The token’s primary purpose is to enhance users’ experience of the M2 ecosystem and is not intended to serve as an investment vehicle or represent an ownership stake in M2. 

MMX will be freely transferable on the Ethereum blockchain. Provided users meet the M2 onboarding requirements, MMX tokens can be exchanged for other virtual assets and fiat currency, depending on the user’s needs. The M2 platform enables fast and secure trading of digital assets for fiat, fiat for digital assets, and digital assets for other digital assets, as well as offering high yield earn products. Visit M2.com.

The Mining Future, crypto mining hosting provider sets up headquarters in UAE

The Mining Future, crypto mining hosting provider sets up headquarters in UAE

In a recent press release, The Mining Future, a Bitcoin and crypto mining hosting services, has set up its headquarters in the UAE. The reason for this is the regulatory challenges being faced in China, USA, and EU as well as the rising costs. The company is also opening a datacentre in Kuwait.

As per the release, The Mining Future has strategically established its headquarters in the United Arab Emirates (UAE) to capitalize on the country’s ambitious vision to become a global leader in the crypto industry. The UAE’s commitment to fostering crypto-friendly regulations, inviting startups and miners within its jurisdiction, and making significant investments to secure its position as a hub for crypto companies have been instrumental in The Mining Future’s decision to choose the UAE as its base.

“We believe that the UAE’s proactive approach to regulation and its commitment to supporting the growth of the crypto industry aligns perfectly with our vision for The Mining Future,” said a spokesperson of The Mining Future. “By operating from the UAE, we can offer our clients a secure and reliable hosting environment while tapping into the country’s thriving crypto ecosystem.”

In addition to their presence in the UAE, The Mining Future is expanding its operations by opening two new state-of-the-art data centers in the Dominican Republic and in Kuwait. This move reflects the company’s commitment to securing clean energy sources and providing its clients with significantly lower rates than the market average.

The company accepts a minimum order quantity (MOQ) of just one miner, compared to the industry-standard MOQ of >10 miners allowing more individuals to participate in the Bitcoin mining network and contribute to its decentralization.

According to the data provided by the Hashrate Index, bitcoin miners in the UAE should produce approximately 13 EH/s, which is equivalent to 3.7% of the total Bitcoin hash rate at an assumed average energy efficiency of 30 J/TH. This comes as the UAE becomes an attractive hub for crypto mining. 

Marathon Digital Holdings confirmed earlier in 2023 that the company along with Abu Dhabi based Zero Two (Registered name FS Innovation), an emerging blockchain and digital assets infrastructure development company, will be launching the two digital asset mining sites with a combined capacity of 250 Megawatts in the sustainability hub of Abu Dhabi Masdar City and the port zone of Mina Zayed by the end of 2023.

There is a bright side to the U.S. SEC charges against Binance

There is a bright side to the U.S. SEC charges against Binance

CZ the Co-Founder of Binance has taken to twitter after word came out that the U.S. SEC ( Securities and Commodities Authority) has sued Binance US and its founder for providing trading for securities such as BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI. The U.S. summarizes the case as a blatant disregard of the federal securities law and the investor and market protections these laws provide. The SEC states that Binance has enriched itself by billions of U.S. dollars while placing investors’ assets at significant risk.

The 13 charges come after the CFTC unveiled a similar complaint against Binance and Zhao earlier this year.

CZ on twitter stated, “4. Our team is all standing by; ensuring systems are stable, including withdrawals, and deposits.  We will issue a response once we see the complaint. Haven’t seen it yet. Media gets the info before we do.”

 Charles Hoskinson of IOHK, who had tweeted, “With respect to Binance, I’m reading through the SEC complaint. It’s over 130 pages, but seems like the next in a series of steps to implement chokepoint 2.0 in the United States. The end goal is an agenda based CBDC partnered with a handful of massive banks and end-to-end control.”

To that CZ replies, “a perfect opportunity for the entire industry to set aside it’s fragmented nature and unite for a common sense set of rules and guidelines”

Binance issued a statement expressing its disappointment with the U.S. Securities and Exchange Commission, stating that they have actively cooperated with SEC’s investigations and have worked hard to answer their questions and address their concerns.

The statement reads, “Most recently, we have engaged in extensive good-faith discussions to reach a negotiated settlement to resolve their investigations.  But despite our efforts, with its complaint today the SEC abandoned that process and instead chose to act unilaterally and litigate.  We are disheartened by that choice. “

They add, “We intend to defend our platform vigorously.  Unfortunately, the SEC’s refusal to productively engage with us is just another example of the Commission’s misguided and conscious refusal to provide much-needed clarity and guidance to the digital asset industry.”

According to Binance, an effective regulatory framework demands collaborative, transparent, and thoughtful policy engagement, a path the SEC has abandoned. Because of our size and global name recognition, Binance is an easy target now caught in the middle of a U.S. regulatory tug-of-war.”

It also explains that because Binance is not a U.S. exchange, the SEC’s actions are limited in reach.  Still, we stand with digital asset market participants in the U.S. in opposition to the SEC’s latest overreach, and we are prepared to fight it to the full extent of the law.

Talal Tabaa, Co-Founder of CoinMENA a crypto broker exchange, told LaraontheBlock, “Honestly, I am not surprised. The SEC has had Binance and CZ in their sights for a while now. Binance operations and ownership structure have always been opaque when compared to others. We will have to wait and see the extent of these charges because the SEC has been on a quite aggressive path with crypto and is pushing many onshore exchanges offshore.”

As for the bright side Tabaa adds, “Ethereum wasn’t listed as part of the assets that are centralized in nature which is a huge win.”

Waseem Mamlouk, Founder of NMB Fintech,  believes that the USA is going after crypto and SEC is the working end of that very focused policy. the USA via the SEC sees alternative assets such as Bitcoin as a threat to fiat currencies especially the US dollar which is the most hegemonic currency, and used in trade deals taking place 24 hours a day.

He adds, “Maintaining that portion size of global market is really big deal for the USA. In absolute terms the USA is biggest money printer in the world, making its product highly diluted which makes them go after all alternative assets and shut them down.

He explains, If you look at late 2021 BTC had a I trillion dollar market cap while today the entire crypto market is under a trillion, so things have changed.

The positive thing according to Mamlouk is that companies are looking to set up in crypto friendly jurisdictions. He notes that a company he is acquainted with which has a 100 million dollar hedge fund that includes stablecoins, early venture startups, Web3 and crypto companies are interested in seeking regulation in markets such as Bahrain.

He finally explains that if the US were to diversify large transactions could be settled in alternative assets, this would be good for US economy. For him the world is changing and as such we have to change with it. This is the natural evolution of economic systems and financial markets.

In conclusion he believes that if you put more things on blockchain, you will achieve more transparency, and trace transactions. Gone are the days where banks such as HSBC can launder money for drug cartels in Mexico. Blockchain and crypto bring more accountability traceability and transparency so the banking structure needs to evolve into this world.

So despite the bad news with SEC versus Binance, there is always a bright side. 

UAE Zero Two purchases first largest single clean energy certificates to decarbonize its digital assets

UAE Zero Two purchases first largest single clean energy certificates to decarbonize its digital assets

UAE digital assets infrastructure company, Zero Two, part of sovereign wealth fund ADQ, has purchased 7.3 million megawatt hours of clean energy from EWEC (Emirates Water and Electricity Company), a leading company in the integrated coordination of planning, purchasing, and supply of water and electricity across the UAE. This is the largest single purchase of Clean Energy Certificates (CECs) to date and the first in the digital assets infrastructure sector.

The purchase agreement was signed by Ahmed Al Hameli, Chief Executive Officer of Zero Two; and Othman Al Ali, Chief Executive Officer of EWEC.

Under the purchase agreement, EWEC will provide Zero Two with clean energy certificates to decarbonize its operations and support the company’s progress against sustainability objectives.

Othman Al Ali, Chief Executive Officer of EWEC, said, “Our clean energy transaction with Zero Two provides EWEC with a unique opportunity to further accelerate the country’s energy transition and decarbonization of industries in line with the UAE Net Zero by 2050 strategic initiative.”

He added, “This first-of-its-kind transaction in the digital assets infrastructure sector, which also constitutes the largest ever single CECs purchase to date, demonstrates both EWEC’s and Zero Two’s commitment to supporting the nation’s sustainability and environmental agenda and is an example of the practical and tangible steps UAE entities can take to decarbonize their operations and address the pressing challenge of climate change.”

Ahmed Al Hameli, CEO of Zero Two, said, “The purchase of EWEC’s Clean Energy Certificates demonstrates our dedication to sustainability and commitment to decarbonizing our digital assets infrastructure. Operating our assets with clean energy enables us to support Abu Dhabi’s transformation into a sustainable economic powerhouse while also contributing to the UAE’s long-term vision of a net zero future.”

Zero Two recently partnered with Marathon Digital to build two  bitcoin mining farms in the UAE. 

Abu Dhabi Masdar City and Mina Zayed Port locations for 250 Megawatt Bitcoin mining facility

Abu Dhabi Masdar City and Mina Zayed Port locations for 250 Megawatt Bitcoin mining facility

Marathon Digital Holdings in a recent press release has confirmed that the company along with Abu Dhabi based Zero Two (Registered name FS Innovation), an emerging blockchain and digital assets infrastructure development company, will be launching the two digital asset mining sites with a combined capacity of 250 Megawatts in the sustainability hub of Abu Dhabi Masdar City and the port zone of Mina Zayed by the end of 2023.

The joint entity registered in ADGM will work to accelerate the global digital economy while supporting the power grid of Abu Dhabi, JV) with the first large-scale immersion Bitcoin mining operations in the Middle East. To power the sites, Marathon and Zero Two intend to leverage excess energy in Abu Dhabi, increasing the base load and sustainability of the Abu Dhabi grid. Marathon and Zero Two will offset any non-sustainably produced electricity with clean energy certificates.

As per previous articles the equity ownership in the ADGM Entity will be 80% for Zero Two and 20% for Marathon.

To overcome desert climate environmental challenges, Marathon and Zero Two developed a custom-built immersion solution to cool the ASIC miners and implemented proprietary software to optimize their performance. The initial results of the pilot project, which include a significant reduction in the amount of maintenance required for the ASIC miners to effectively produce hash rate, indicate that operating immersion digital asset mining sites in Abu Dhabi is now feasible with the implementation of Marathon’s and Zero Two’s technological advancements.

The mining equipment and infrastructure required to build each site has already been ordered, and construction of both digital asset mining sites is currently underway. Once operational, these sites are expected to be among the most technologically advanced and energy-efficient digital asset mining operations globally. Based on the current construction schedules, both sites are expected to come online before the end of 2023, with a combined hash rate of approximately 7 EH/s.

“Our strategic alliance with Marathon marks a significant milestone for the blockchain and digital assets industry in Abu Dhabi,” said Ahmed Al Hameli, Chief Executive Officer of Zero Two. “This alliance leverages Zero Two’s regional expertise, expansive relationships, and growing blockchain infrastructure development and operational capabilities, with Marathon’s technical prowess in developing digital asset sites and innovative mining technologies. These synergies create a powerful combination and lay the groundwork for the success of this pioneering project in the Middle East. Marathon shares our commitment to actively supporting Abu Dhabi’s power grid and developing global digital assets infrastructure. We look forward to working with them on this venture.”

 

Fred Thiel, Marathon’s chairman and CEO, commented, “Our collaboration with Zero Two is a pivotal moment for Marathon and one that is consistent with our ethos of operating at the forefront of the technology curve and developing innovative technology solutions to advance the Bitcoin mining industry. For this project, our team successfully co-developed and implemented a full immersion solution, as well as developed proprietary mining software from the ground up to provide flexibility, resilience, and optimization. In Zero Two, we have found a valuable collaborator whose expertise in digital asset infrastructure development, and whose relationships in the region are an optimal complement to our team’s unique ability to build and implement innovative technologies. We look forward to working together to build the next-generation Bitcoin mining facilities in Abu Dhabi.”

Crypto Exchange RAIN Bahrain traded $484 million worth of crypto with Ethereum and XRP leading over Bitcoin

Crypto Exchange RAIN Bahrain traded $484 million worth of crypto with Ethereum and XRP leading over Bitcoin

Crypto Broker Exchange RAIN Bahrain has traded $484 million worth of crypto since its inception in 2019 with Ethereum the most traded crypto asset followed by XRP. 

RAIN has noted that it has a  customer base of 75,000 from Bahraini residents signed up on the platform. 

According to the RAIN LinkedIn post “We’re thrilled to share some exciting news about our impact on the Kingdom’s crypto market! Since launching Rain in 2019, we’ve been able to offer our customers a reliable and secure platform for trading crypto assets. We’re grateful for Bahrain’s strong support for innovation and entrepreneurship, which has contributed to our success. Thank you to the people of Bahrain and Team Bahrain for your unwavering support!” 

As per their statistics 41% of active crypto traders in Bahrain chose RAIN, while 5% of crypto trades in Bahrain are carried out on RAIN. 

In addition the biggest traded cryptocurrencies on RAIN Bahrain are Ethereum, Bitcoin, XRP, Litecoin and tether. Statistically Ethereum has the highest percentage of trades at 37% followed by XRP (Ripple token) at 25% and Bitcoin at 20%, while Litecoin 7% while Tether USDT is 5% of trade and 6% is distributed to others. 

In terms of the age groups trading on RAIN, the biggest age group is from 30-34 years old followed by those over 40 years old. The youth make up only 10% and refers to those from18 to 24 years old, while 22% are from 25 to 29 year olds. 

Bahrain was the first country in the GCC to launch crypto exchange licenses and RAIN was the first operator to launch in Bahrain. Since then CoinMENA, Binance have followed suite. In addition recently BitOasis also noted that it was in the midst of receiving a license in Bahrain. 

Bahrain also recently was the first country in the GCC to issue onshore security token regulations.

US Marathon Digital Holdings to jointly build $406 million crypto mining facility in UAE

US Marathon Digital Holdings to jointly build $406 million crypto mining facility in UAE

In an SEC Filing dated January 27th 2022, USA based Marathon digital Holdings, a digital asset mining entity, announced that it had entered into a shareholder’s agreement with FSI ( FS Innovation), the BTC mining subsidiary of UAE ADQ a sovereign fund,  to form an Abu Dhabi, ( ADGM (Abu Dhabi Global Markets) based company.

As per the filing, the joint UAE ADGM based company will establish and operate one or more mining facilities for digital assets. The business entity will be in the field of digital asset/crypto mining.

The initial phase will consist of two digital asset mining sites comprising 250 MW (megawatts) in Abu Dhabi UAE.

Marathon Holdings will own 20% of the joint company in UAE only. The cost of the project will be $406 million.

This new comes after UAE based Phoenix Technology which embarked on establishing a $2 billion crypto-mining farm in the UAE,  announced in November 2022, that the biggest crypto mining project in the region will be completed in the next six months, Q2 of 2023.  The press release at the time noted, “The project will be finalized within six months, giving the region a taste of technological advancement and development.”

In February 2022 Phoenix had announced it was part of the group of entities developing the UAE crypto mining farm in an interview with well renowned crypto and Blockchain lawyer Irena Heaver.

Crypto mining is an integral part of the development of crypto economies, and the MENA region is opening up to exactly these economies. Already the GCC and MENA region has become an attractive destination for crypto mining. 

During Binance Week 2022, Khalifa AlJaziri, AlShehhi, Commercial Affairs Regulatory Sector Projects advisor at the Ministry of Economy in UAE, claimed that the Dubai World Trade Center Authority (DWTCA) would be legislating the crypto mining sector. He stated, “We are setting the guidelines and rules needed to regulate crypto mining within this crypto framework.

The UAE is not the only country that has shown interest in crypto mining. Oman Investment Authority (OIA) took part in a $350mn equity round in Crusoe Energy Systems. The US firm helps oil and gas producers cut flaring by using stranded natural gas to power cryptocurrency mining. Crusoe systems set up operations in Oman as well. 

Crypto Options Exchange seeks to enter UAE in Q3 2023

Crypto Options Exchange seeks to enter UAE in Q3 2023

As per an article in Bloomberg, Bitcoin and Ethereum options exchange Deribit, is setting to enter Dubai UAE in Q3 2023, as UAE regulators provide the regulatory environment that will allow them to operate in the country.

As per the report, the exchange plans to open a Dubai office staffed by a team of 10 people composed of both local hires and the company’s existing talent, Deribit Chief Legal, Compliance and Regulatory Officer David Dohmen told Bloomberg. The move could take place as soon as this summer.

The Panamanian exchange is also planning expansion into Brazil, the U.K. and Singapore, said Dohmen.

The total volume of bitcoin options on Deribit rose to $4.25 billion during the week of January 15th 2023, the highest since second week of November 2022.

That’s a 375% rise from the low of $895 million registered in the final week of December, according to data source provider Amberdata. Deribit is the world’s largest crypto options exchange, accounting for nearly 90% of the global trading volume and open interest.

The impressive recovery in volume has mainly been driven by an uptick in demand for call options or bullish bets offering protection against price rallies.

“The share of calls relative to put volume is currently at more than 66%, its highest level in over a year,” analysts at Kaiko Research said in a note to clients on Monday. “This is yet another indicator that sentiment has improved in January.”

The dollar value locked in the number of open options contracts, also known as open interest, has increased to $5.92 billion, the highest since Oct. 27. Bitcoin’s (BTC) price has rallied by nearly 40% this month.

Options are derivative contracts that offer the purchaser the right but not the obligation to buy or sell the underlying asset at a predetermined price on or before a specific date. The call option gives the right to buy, while put options offer the right to sell.

Options are widely used by both institutions and individual investors and often provide an accurate picture of sentiment in the broader market.

UAE HAYVN Subsidiary, HAYVN Asset Management launches crypto Index Fund

UAE HAYVN Subsidiary, HAYVN Asset Management launches crypto Index Fund

HAYVN, regulated by UAE Abu Dhabi Global Markets, CIMA, and AUSTRAC has launched its first HAYVN 20 Index Fund a high risk fund that includes crypto assets.

According to their website the fund will include the top 20 digital assets by market capitalization with a maximum weighting of 10% for any asset to increase diversification. It is a broad based index strategy with monthly rebalancing.

The Fund will be managed by HAYVN Asset Management, a British Virgin Island Approved Manager, 100% subsidiary of the HAYVN group.

The primary objective of the HAYVN 20 Segregated Portfolio is to deliver long term capital growth by investing 100% of fund assets within the crypto asset class. The fund is suitable for medium to long-term investors seeking diversified exposure to the broader crypto asset market, obtained through holding the top 20 crypto assets by market capitalisation. The fund aims to provide investors with enhanced returns relative to a pure market-cap weighted top 20 strategy. Investors should expect high levels of volatility and potential drawdown of their investment.

The fund follows a passive rebalancing strategy. The fund is invested in the top 20 crypto assets by market capitalisation, with monthly rebalancing. A maximum component weighting of 10% is utilised to prevent any single asset, and thus single source of risk, from dominating the portfolio. As such, the fund is relatively overexposed to lower market cap assets in the top 20, and less exposed to assets where the 10% asset cap is binding, such as Bitcoin.

According to HAYVN CEO, Christopher Flinos, ” With HAYVN20 we are providing investors with a diversified, low cost and regulated solution to invest in one of the biggest investment trends since the inception of the internet. We believe that risk is fully priced into currenct market conditions, and we want our customers to be able to participate in what we expect will be a positive long-term trend”

A broad based index strategy with monthly rebalancing is a low cost way to capture the long-term growth in digital assets and gain exposure to emerging trends without the inherent manager biases of active asset management.

In addition HAYVN Founder in an interview recently announced that they were preparing for a Series B Funding round in mid-2023 to raise up to $20 million to further scale the business and spin off HAYVN Pay.

HAYVN Co-Founder Christopher Flinos in a recent interview stated that HAYVN is preparing for a series B funding round in the second half of this year and aims to raise up to $20 million, which it will use to further scale the business and potentially spin off Hayvn Pay.

“We are working through that at the moment and are hopeful that we will be able to spin off Hayvn Pay quite quickly, have it on its own and then potentially look at whether the series B is done at the Hayvn level, or whether it is done at the Hayvn Pay [level],” Mr Flinos says.