Turkey gives the UAE a run for its crypto status

Turkey gives the UAE a run for its crypto status

For as long as can be remembered, the UAE has been at the forefront of the crypto scene in the MENA region. To date it has outpaced most of the countries in the region, but it seems that Turkey is starting to give the UAE a run for its crypto status.

During the past several weeks many crypto related announcements have been coming out of Turkey.

The first which was interesting was the expansion of Turkish home grown crypto trading and mining platform to Brazil. Bitci aims to open a cryptocurrency trading platform in Brazil and then Spain.

Chief Executive Onur Altan Tan said in an interview that he hopes a Brazilian exchange will build on its tie ups with soccer clubs there, given that the company offers fan tokens.

He stated, “We are opening a crypto exchange in Brazil because we have valuable assets there. We have released fan tokens of Brazil’s national team and we have agreed with six other clubs.”

Tan said after Brazil and Spain, Bitci plans to open crypto exchanges in some countries in Central Asia, India and Russia in 2024. 

But that is not all that is coming out of Turkey. Turkish banks are also gearing up towards crypto. Turkish AkBank announced the acquisition of local crypto firm Stablex as it aims to become a key player in the digital asset space.

Then Garanti BBVA, another leading Turkish bank, launched its crypto wallet app the following day. The application has a cold wallet feature and allows users to send and receive assets like Bitcoin (BTC), USD Coin (USDC) and ether (ETH).

Turkey ranks among the top 20 countries in Chainalysis’ Global Crypto Adoption Index 2023.

Finally Turkey’s finance minister, Mehmet Simsek, recently announced that the nation’s crypto regulations are in their “final stages.” According to the report, these impending regulations are designed to mitigate the risks associated with trading in crypto assets and faciliatate the removal of Turkey from FATF (Financial Action Task Force) grey list.

The proposed regulations outline a licensing framework for digital currency asset trading platforms overseen by Turkey’s Capital Markets Board (CMB). This framework will introduce minimum operating standards, including specific requirements for founders and managers, organizational obligations, and capital stipulations.

As reported by Reuters, Simsek’s announcement reflects Turkey’s approach to integrating crypto assets into its regulated financial landscape.

This is happening while the UAE still lags behind when it comes to Central Bank framework for virtual assets payments, remittances and settlements. While many crypto exchanges in the UAE have received licenses, none have confirmed which banks they are working with when it comes to fiat and crypto on and off ramp.

In terms of traditional banks, again most UAE banks have stayed away from crypto. It hasn’t helped that the UAE Central Bank issued a new guidance on anti-money laundering and combating the financing of terrorism (AML/CFT) for licensed financial institutions (LFIs) with a focus on the risks of dealing with virtual assets.

Companies such as WadzPay still await the Central Bank framework that would allow them to move forward with their pilot solution with Dubai Duty Free for implementing a digital assets settlement platform. But so far the only partnership Dubai Duty Free has signed up with is AliPay allowing customers access promotions and pay with their home digital apps at duty-free stores at Dubai and Al Maktoum International airports.

Chainalysis report finds that Arab African country Morocco still in top 20 global list for crypto adoption

Chainalysis report finds that Arab African country Morocco still in top 20 global list for crypto adoption

In the fourth annual Chainalysis Global crypto adoption index, identifying countries where the most people are putting the greatest share of their wealth into cryptocurrency, once again Morocco takes lead and is listed as one of the top 20 countries placing an Arab country on the map, while Turkey places the MENA region. The 2023 report states that global adoption is down, but not in one crucial subset of the world.

More specifically, there’s one crucial segment of countries where grassroots adoption has seen a much stronger recovery than anywhere else: Lower middle income (LMI) countries.

The full report will be out in October, but compared to 2022, the countries on the top 20 list are still almost the same.  In 2022 Turkey, Egypt and Morocco led not only in MENA  region but globally. All three countries were in the top thirty list of countries with most crypto savings, usage of crypto for remittance payments and permissive crypto regulations.

As for Sub Saharan Africa, the adoption of Bitcoin is the highest in the world with 9% growth rate. Nigeria was one of only six countries in the world whose transaction volume grew year-over-year. The use of homegrown Sub-Saharan Africa-based exchanges continues to outpace global exchanges.

BitOasis beats Binance to it and launches crypto cards with MasterCard in MENA

BitOasis beats Binance to it and launches crypto cards with MasterCard in MENA

UAE based crypto exchange BitOasis, and MasterCard are launching crypto card programs across the MENA region to facilitate day to day usage of cryptocurrencies at points of sale and ecommerce website.

BitOasis customers will be able to convert their cryptocurrency holdings to fiat currency allowing the consumer to easily shop and pay at more than 90 million merchant locations globally. The first BitOasis cards are expected to launch in early 2023 in markets with regulatory approvals.

BitOasis customers, who can also access a range of MasterCard benefits, will be issued with virtual and physical BitOasis cards through a simple and compliant digital on boarding experience via the BitOasis app, allowing them to transact seamlessly physically and online.

BitOasis customer transactions will be enabled to take place in Fiat currency, thereby adding consumer protection – such as provisions for dispute resolution and refunds – which doesn’t exist today when paying with a digital asset. The partnership will address these pain points and further drive customer awareness and crypto adoption in the region. 

Amnah Ajmal, Executive Vice President Market Development, EEMEA, MasterCard, said: “Changes in consumer demand, as they look for new, fast and flexible digital experiences, are fueling an increase in the adoption of emerging payment technologies. With this comes a greater expectation for businesses to provide multiple ways to shop and pay. Through our collaboration with BitOasis, one of the most innovative crypto platforms in MENA, we enable the consumer experience to be seamless by using their cryptocurrencies in a safe and secure environment.”

 Ola Doudin, CEO and co-founder, BitOasis, stated,  “We continue to witness sustained demand amongst our customers for crypto to be integrated into, and relevant, for their daily lives.  Research tells us that 47% of the Middle East population now believe crypto is the future of money. As the largest crypto platform built for the GCC and MENA region, we are delighted to partner with Mastercard to enable BitOasis customers to benefit from the convenience of linking their BitOasis wallets to their BitOasis Mastercard Crypto Cards for use across Mastercard’s global merchant network. Our mission at BitOasis is to enable a new digital financial system that is transparent, inclusive, regulated, and relevant on a daily basis, whilst providing even greater safety and security for cryptocurrency payments. Today’s partnership helps us deliver against our mission”.

It seems BitOasis beat Binance to it. In August Richard Teng head of Binance MENA had stated that they would be close to launching crypto cards with MasterCard in MENA. Since then no announcement. But here is BitOasis all partnered up and ready to go.