UAE licensed crypto exchanges target Institutional Investors with new products and offerings

UAE licensed crypto exchanges target Institutional Investors with new products and offerings

In just 24 hours several crypto exchanges licensed in the UAE have been promoting new offerings and campaigns targeting professional and institutional traders. OKX, Binance, GCEX and Deribit all have come out with announcements on new service offerings for institutional players, and all these crypto exchanges have licenses in the UAE.

OKX, a leading cryptocurrency exchange and global on chain technology company, announced the launch of its ‘Trade Like a Pro’ brand campaign. The campaign celebrates “A New Alternative for the UAE,” marking OKX’s recent milestone of becoming operationally live and licensed in the region as of October 10, 2024.

It is tailored specifically for UAE audiences and presented in both Arabic and English, the campaign provides a unique opportunity for local traders to learn strategies from professional traders in their market and understand why they chose OKX as their preferred trading platform. OKX is the first global crypto company in the UAE to offer AED banking rails for its retail and institutional customers and this campaign further underscores its commitment to the UAE and dedication to fostering the growth of the crypto and Web3 ecosystem in the region.

To celebrate the launch of this campaign in the UAE, OKX is offering eligible customers the chance to receive up to 100 USDT by reaching set trading volumes across spot and futures. Additionally, customers can earn 10 USDT by depositing 50 USDT into their accounts, plus an extra 50 USDT for sharing the campaign on their social media platforms. For more details about the ‘Trade Like a Pro with OKX’ campaign, running from October 29 to November 30, click here.

Even Binance has announced Binance Wealth, a technological solution for wealth managers. As per Binance, Binance Wealth allows wealth managers to oversee the onboarding of their clients and make investment recommendations, allowing their clients to receive strong support during onboarding and thereafter while retaining full discretionary control, akin to traditional wealth management.

Wealth managers must first apply to access Binance Wealth. After being successfully onboarded, they can then help support their clients’ onboarding journey by submitting the necessary KYC/KYB documentation for verification. Onboarded clients can then manage their own investments directly as well as receive recommendations from their

Catherine Chen, Head of Binance VIP & Institutional shared, “As investors worldwide recognize the potential of digital assets, we are responding to wealth managers and their clients asking for a solution to more easily access crypto. Unlocking capital inflow is key to making digital assets mainstream but there has long been a lack of traditional infrastructure for the private wealth segment to gain exposure to crypto. Binance Wealth will reduce the entry barrier for more market participants to access this new asset class and help bridge crypto and traditional finance.”

While GCEX Group, digital asset and foreign exchange solutions, has partnered with RULEMATCH, a leading market operator, to offer its institutional clients access to one of the world’s fastest trading venues for cryptocurrencies.

RULEMATCH is a spot crypto trading venue based in Switzerland, built on institutional grade technology. In addition to unparalleled execution speeds, it offers access to competitive and consistent liquidity from regulated market makers, capital efficient post-trade settlement, and stringent AML/CFT controls.

This latest development from GCEX enables its client base of hedge funds, algorithmic trading firms, brokers and ETF/ETP providers to benefit from binding quotes in an anonymous Central-Limit Order Book (CLOB) and execution times of 25 microseconds. To ensure capital efficiency and minimise settlement risks, multilateral clearing and settlement are fully integrated and handled via GCEX acting as Prime Broker Sponsor.

Lars Holst, CEO, GCEX said, “We are continually looking to push boundaries and extend our offering. Our partnership with RULEMATCH presents a fantastic opportunity for our clients. RULEMATCH is built on state-of-the-art institutional grade technology that offers ultra-low latency trading of cryptocurrencies, with ultra-competitive fees and consistent execution latency down to 25 microseconds. Their offering is very impressive and we share the same ethos in terms of market integrity and professionalism.”

Finally Deribit, a digital assets derivatives exchange, launched its support for hybrid custody solutions that allow for quicker onboarding of third-party custodians and brokerages for capital markets traders. At launch, custody firms set to utilize the hybrid model include Fidelity Digital Assets®, Copper Securities, and Zodia, with others set to be onboarded later this year.

Deribit’s current third-party custodians are fully integrated with the exchange, allowing traders to leverage all of Deribit’s trading capabilities via an API without the funds ever needing to leave their account. However, these integrations take time, making it harder for institutional traders to access the exchange and giving them fewer options for how to secure collateral. The hybrid custody model solves this problem as custodians are able to offer Deribit as a trading venue without needing full integration, giving traders using Fidelity Digital Assets® and others faster access to the Deribit trading platform.

Deribit CEO Luuk Strijers commented on the news, “At Deribit, we are committed to continually innovating and meeting the evolving needs of our institutional members and make it easier for all to access crypto derivatives markets. Throughout 2024, we have continued to focus on our institutional clients to create a fulsome trading experience in the broader finance ecosystem. Supporting a hybrid custody model marks a significant step forward, providing enhanced flexibility for accessing Deribit’s world-class digital asset derivatives trading offerings. By allowing for a hybrid model with these external custody solutions, we empower our clients while maintaining the seamless trading experience Deribit is known for.”

In a hybrid model, Deribit traders leveraging a custodian that isn’t integrated with the exchange will have to store a percentage of assets on the exchange to meet collateral requirements, while the rest will be secured by their custodian of choice. Members will need to deposit 20% of their total assets on Deribit by default, but this number is subject to change depending on trading activity, exposure, risk profiles, and market conditions. Daily settlements of profit and loss occur within the Deribit platform.

As of early 2024, institutional investors and companies have poured billions into the cryptocurrency space. In Q1 2024, over $2.4 billion was invested by venture capital firms in crypto startups. Over 70% of institutional investors are planning to put money in crypto this year.

Institutional investment in the crypto space is surging in the United Arab Emirates. Blockchain data platform Chainalysis found that institutional investments (each exceeding $1 million in value) constituted more than 67% of cryptocurrency transactions in the federation of seven emirates between July 2022 and June 2023. Following these institutional transactions were transfers linked to professional investments, ranging from $10,000 to $1 million, and retail investments made up 4.63% of all transfers in the Emirates, according to a report published on Sept. 26.

Dubai’s DIFC Regulatory authority now allows crypto asset investment and stablecoins

Dubai’s DIFC Regulatory authority now allows crypto asset investment and stablecoins

The Dubai Financial Services Authority (DFSA) the regulatory arm of DIFC ( Dubai International Financial Center) has amended its crypto token regime. These changes stem from the proposals outlined in Consultation Paper 153 – Updates to the Crypto Token regime published in January 2024.

According to the press release, this marks a significant step in refining and advancing the regulatory environment for Crypto Tokens in the Dubai International Financial Centre (DIFC).

Amendments are related to the following areas, funds, custody, recognition of crypto tokens and financial crime

In terms of funds DFSRA now allows the offering of units of external and foreign funds investing in recognized crypto tokens, as well as the ability for domestic qualified investor funds to invest in unrecognized crypto tokens. Minimum individual investment in fund is $50,000. The Fund’s investment in Crypto Tokens is limited to Recognized Crypto Tokens and does not exceed 20% of the gross asset value of the Fund.

Firms can offer custodial and staking services as per the amendment but they cannot offer lending services. Cited in the document, ” An Authorized Firm must not offer or provide any facility or service that allows a Client to lend a Crypto Token to the Authorized Firm or to another person unless it is reasonably satisfied that:. (2) The restriction in (1) does not apply to: (a) an Authorized Firm that is authorized to Provide Custody, if: (i) the Crypto Token is not a Prohibited Token; (ii) the Authorized Firm is reasonably satisfied that: (a)(A) the Client is a Professional Client or Market Counterparty; and (b)(B) the lending is solely for the purpose of staking.; and (iii) the requirements in (3) have been met”

An Authorized Firm must be able to demonstrate to the DFSA’s satisfaction the grounds upon which the Authorized Firm considers the Third Party Agent or a non DIFC custodian to be suitable to hold Safe Custody Investments or Safe Custody Crypto Tokens.

In addition DFSA has replaced its previous Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Module (AML) – (AML/VER25/05-24) is repealed and has been replaced by Appendix 1 to this instrument and may be identified by the following reference – (AML/VER26/06-24). VASPs will have to comply with Federal Cabinet Resolution No. 10 of 2019 requirements under Federal AML legislation to Virtual Asset Service Providers (VASPs), in addition to Financial Institutions and DNFBPs. The DFSA’s AML regime applies in addition to the Federal AML legislation.

In terms of NFTs and utility tokens, the DFSA has excluded a Non-Fungible Token (NFT) and a Utility Token from its Crypto Token definition where such a Token meets specified criteria. However The DFSA has prescribed in AML Rule 3.2.1 that a person who carries on the business or profession of issuing or providing services related to a NFT or Utility Token is a DNFBP. An exclusion applies, in the case of an issuer, if the value of each NFT or Utility Token issued is less than $15,000 and, in the case of a service provider, if the service is IT support or advice to an issuer.

VASPs will have to adhere to AML requirements of the government of the U.A.E. or any government departments in the U.A.E.; the Central Bank of the U.A.E.; the FIU; the National Anti-Money Laundering and Combating Financing of Terrorism And Financing of Illegal Organizations Committee (NAMLCFTC); FATF; U.A.E. enforcement agencies; and the DFSA.

DFSA also recognized stablecoins which it called Fiat crypto tokens. DFSA does not consider privacy tokens or algorithmic tokens as recognized.

As noted, ” if Fiat Crypto Token, all of the requirements are met in respect of that Fiat Crypto Token including the matters referred to the regulatory status of the Crypto Token in other jurisdictions, including whether it has been assessed or approved for use by a Regulator in another Recognized Jurisdiction; whether there is adequate transparency relating to the Crypto Token, including sufficient detail about its purpose, protocols, consensus mechanism, governance arrangements, founders, key persons, miners and significant holders; the size, liquidity and volatility of the market for the Crypto Token globally; the adequacy and suitability of the technology used in connection with the Crypto Token and whether risks associated with the Crypto Token are adequately mitigated, including risks relating to governance, legal and regulatory issues, cybersecurity, money laundering, market abuse and other financial crime.

These changes are based on recent market developments, recommendations from international standard-setters and the DFSA’s supervisory experience.

Over the past two years, the DFSA has engaged with over 100 firms looking to be licensed, gaining valuable insights into the market dynamics and regulatory needs.

Ian Johnston, Chief Executive of the DFSA, said: “Our objective with the Crypto Token regime is to foster innovation in a responsible and transparent manner while ensuring we meet our regulatory objectives. At the DFSA, we have taken a balanced approach in the development of this regime and remain committed to evolving it in line with global best practices and standards.”

Noteworthy is that the amendments did not cover insurance which was mentioned in January in the consultation paper.

DWF Labs and Binance refute any claims of crypto market manipulation or cover up

DWF Labs and Binance refute any claims of crypto market manipulation or cover up

DWF Labs, a proprietary high frequency trading firm with offices in UAE, China, Singapore, and Hongkong as well as Binance the biggest crypto exchange globally have vehemently denied all accusations made in a recent article in the Wall Street Journal that there was market manipulation and an ensuing cover up.

The WSJ article discussed accusations that DWF Labs had carried out market manipulation allegedly discovered by a now ex-employee of Binance.

As per the article the fired employee, along with his team, was tasked with identifying and investigating suspicious trading activities. They reported that certain “VIP” clients, including those trading over $100 million per month, were engaged in prohibited practices such as pump-and-dump schemes and wash trading.

Wash trading is a type of market manipulation that can artificially inflate prices and lead investors to believe there is greater market liquidity than there actually is. Widespread crypto wash trading profoundly distorts markets, erodes investor trust, and skews financial market indices

The unnamed former Binance insider claimed that the exchange’s investigators identified $300 million worth of wash trading by DWF Labs in 2023, involving cryptocurrencies including the Yield Guild Game (YGG) token.

Binance concluded that the evidence of market abuse by DWF Labs was insufficient. As per WSJ article shortly after the report was submitted, the head of the surveillance team was dismissed.

The allegations against DWF Labs first surfaced in September 2023 after unusual on-chain activity was noted by the cryptocurrency community. Wintermute, another algorithmic trading firm, accused DWF Labs of misrepresenting their market activities. Yoann Turpin, co-founder of Wintermute, criticized DWF Labs during an interview at Token2049, arguing that they mislabel what are essentially over-the-counter trades as investments

In reply to these accusations both Binance and Dubai based DWF Labs have come out with statements denying these charges and defending their practices.

In a blog post on DWF Labs website, the firm noted, “DWF is a proprietary high-frequency trading firm founded in 2018 by a collective of academically distinguished researchers and professional quantitative traders from a top proprietary trading firm. Our organisation has deep expertise in artificial intelligence, machine learning, and advanced statistical methods, all of which we harness to execute high-frequency trading strategies across a vast array of digital asset products, including spot, perpetual contracts, and options markets. Our trading activities span over 60 centralised and decentralised venues, making DWF a prominent player in the financial technology landscape.”

The blog adds,” From day one, our goal has been to always uphold the highest standards of transparency, trust, and integrity.”

DWF Labs is trusted by over 700 companies, platforms, and institutions. The company states that it provides liquidity to markets for more than a quarter of the 100 largest crypto-native projects and our reach spans across the entire crypto ecosystem. They note that they are committed to supporting bold entrepreneurs by providing liquidity, contributing to Total Value Locked (TVL), operating validator nodes, and making venture investments.

DWF Labs cooperated with DMCC (Dubai Multi Commodities centre) to support crypto startups and was named most active lead investor in 2023. It is also Bybit’s top liquidity provider according to their statements.

DWF Labs claims in its blog post that it has supported the integration to institutional wallets: TON <> Fireblocks , Conflux <> Fordefi, as well as Hackathons: TON, Viction, Conflux (U-Hack), Bybit x DMCC x DWF Labs including ecosystem funds and grants: Airdao, ZigCHAIN, TON, Theta, Algorand, Flare, EOS, Floki, API3, Kava, Gala Chain, Klaytn.

In a strong worded sentence, DWF Labs stated, “Establishments and fake media will not root the movement that Bitcoin started in 2009. We are in crypto for the very reasons why the establishments want to get rid of us.”

On another front Binance also faced the allegations with their own statement saying “Binance emphatically rejects any assertion that its market surveillance program has permitted market manipulation on our platform. We have a robust market surveillance framework that identifies and takes action against market abuse. Any users that breach our terms of use are off-boarded; we do not tolerate market abuse.”

Binance notes that over the last three years its team has offboarded nearly 355,000 users with transaction volumes of more than $2.5 trillion for violating their terms of use.

The crypto exchange added, “We have 190 million users. They can rest assured we do not favour any individual user, no matter how big, over the safety of the platform.  That said, these are not decisions we take lightly. We do deep investigations, using multiple tools, and only offboard clients when there is sufficient evidence, they have violated our terms of use. A recent independent investigation from Inca Digital into Binance’s market surveillance practices validates the effectiveness of our approach, finding “minimal signs of anomalous trading activities.”

Whether these allegations are part of a wider 21st century witch hunt or whether these are true representation of reality, what is for sure is that the crypto ecosystem as it grows is coming under increased pressure from the establishment!

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.

UAE experts and regulators weigh in on U.S. Bitcoin ETF

UAE experts and regulators weigh in on U.S. Bitcoin ETF

The globe is reacting to the U.S. SEC’s green light to launch the first US listed exchange traded funds, Bitcoin ETFs for 11 companies and has had a ripple effect in the MENA region. The SEC approved the Bitcoin ETF on January 10th, with skepticism towards crypto still present in Gensler’s statement.

The full list of companies that got SEC approval to launch Bitcoin ETFs are: Ark Invest together with 21 Shares; Bitwise, BlackRock, Fidelity, Franklin Templeton, Grayscale, Hashdex, Invesco, WisdomTree, Valkyrie and VanEck. Some of their ETFs will be trading on January 11th 2024.

The Bitcoin ETFs will track Bitcoin, opening the door to cryptocurrencies to many new investors who don’t want to take the extra steps involved in buying actual Bitcoin.

So what is an ETF? An ETF is an easy way to invest in assets or a group of assets without having to directly buy the assets themselves. It is similar for example to the SPDR Gold Shares ETF allows anyone to invest in gold without having to find a place to store a bar or protect it. In addition, ETFs can also be easily traded on stock exchanges.

The decision to approve the ETFs is a win for huge fund managers like BlackRock, Fidelity Investments and Invesco who will manage the funds given they have pushed hard to get the SEC to approve them.

Yet Gary Gensler, SEC’s chairman stated, “Investors should remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to crypto.” While other commissioners expressed alarm that the SEC agreed to approve the funds.

Regardless of the negative statements, Standard Chartered analysts said the ETFs could draw $50bn to $100bn this year alone, potentially driving the price of Bitcoin as high as $100,000. Others have said inflows will be closer to $55bn over five years.

All this has brought forth speculations that fund managers will create ETFs around Ethereum soon.

While most agree that the success of Bitcoin ETFs will depend on fees and liquidity. This is why some issuers have proposed fees between 0.2% to 1.5% such as BlackRock and Ark/21shares while other firms have waived fees entirely for a certain period of time.

UAE experts, regulators, investors, and crypto exchanges weighed in their views on the U.S. Bitcoin ETF, and here is what they had to say:

Bitcoin ETF a significant milestone for the industry that could spur investment

Dubai’s virtual asset regulatory authority represented by its CEO Mathew White told LaraontheBlock, “Without a doubt, this ETF approval is a significant milestone for the industry. We need to wait and see what the capital inflows look like to see the real impact, but in theory we could see increased liquidity and reduced volatility of Bitcoin over time, which is good for the industry as a whole in the long term. Stability and transparency pave the way for more innovation and I expect this move to eventually spark further investment into this sector.”

Bitcoin ETF: will unlock wider adoption of crypto in UAE

Saqr Ereiqat, Co-Founder and Managing Partner at Crypto Oasis Sentio commented, “The recent regulatory green light for Bitcoin ETFs marks a pivotal moment for the global financial landscape, and its ripples are likely to be felt particularly strongly in the United Arab Emirates. This landmark decision unlocks doors for wider adoption of cryptocurrency within the UAE, a region already well-positioned to become a global crypto powerhouse.”

Bitcoin ETF: legitimacy and recognition from traditional financial institutions

Stefan Kimmel CEO M2 a UAE regulated crypto exchange, explained that while other countries had already approved Bitcoin ETFs previously, the recent approval in the US marks a “monumental shift for the entire cryptocurrency ecosystem.  It feels like a turning point and an emotional victory in the ongoing narrative surrounding Bitcoin. This development not only provides investors with a more accessible avenue to enter the Bitcoin market but also adds a layer of legitimacy and recognition from traditional financial institutions.”

He adds, “The ETF approval will attract a broader range of investors, including institutional players who may have been on the sidelines due to regulatory uncertainty. This merging has the potential   to redefine investment strategies, allowing investors to diversify portfolios seamlessly across traditional assets and digital assets.”

In terms of the UAE He believes, “The UAE has strategically positioned itself as a global hub for digital assets. With the ETF approval, the UAE is now perfectly poised to take advantage of a new wave of digital asset investment driven by institutional investors searching for regulatory clarity and a favorable market environment. The approval signals a growing acceptance of digital assets within the mainstream financial system, potentially paving the way for similar advancements in the broader cryptocurrency space.”

Bitcoin ETF: Bitcoin can now take on the mantle of Digital Gold

Matt Dixon Founder and CEO Evai Crypto ratings, which uses AI and Machine learning technology to help crypto traders build wealth, believes that this green light is an important milestone where the phase is now ripe for the entrance of institutional adoption after early retail adoption allowed BTC to grow from $0 to $69,000.

He states, “ETF approval should translate to an increased demand, whilst Bitcoin Halving in April reduces the supply. Now if we consider the Stock to Flow Ratio, which incidentally has been a great predictor of Bitcoin pricing, then indications are that Bitcoin could at last take on its mantle of Digital Gold. As of April it will achieve higher Stock to Flow ratio than the precious metal itself. This could create a real squeeze on price with the possibility of Bitcoin achieving price projections of up to $1 million according to some industry analysts.”

He adds, “With the potential of further QE Fiat money printing by the FED if the US economy enters recession this year as some predict, then the limited supply of Bitcoin could cause it to shine even brighter.”

Bitcoin ETF: Investing in Bitcoin directly is better than investing in its derivative

Talal Tabaa Co-Founder and CEO of CoinMENA, a regulated crypto broker out of UAE and Bahrain, believes that Bitcoin ETF’s will add a lot more credibility to Bitcoin, and the UAE will soon follow suit. He also espouses that the best way to buy and invest in Bitcoin is directly.

He states on LinkedIn, “ There are three reasons why investing in Bitcoin directly is better than investing in a bitcoin derivative, First is Zero Management Fees: While ETF firms compete to lower their management fees, there are no fees for holding actual Bitcoin, leading to higher returns over time. Secodly is 24/7 Trading: ETFs only trade between 9:30 am and 4:30 pm on weekdays (if it’s not a holiday). Bitcoin trades 24/7, every day, and finally not your keys, not your coins: Owning Bitcoin in self-custody means having complete control over the asset with no counterparty risk. This will become increasingly important over the years.”

Bitcoin ETF: Bitcoin resilience paving the way to an Ether ETF

 Ben Zhou, co-founder and CEO of Bybit, the world’s third largest crypto exchange by volume, believes the approval of the Bitcoin ETF is a testament to the resilience of Bitcoin, an asset that continues to outperform despite facing an array of challenges.

In a commentary he states, “I believe that the real significance of the Bitcoin ETF extends far beyond today’s market dynamics. It heralds a new epoch of institutional and wider crypto adoption, paving the way for an Ether ETF and mixed products like a Bitcoin and Gold ETF. It’s a clear indicator that crypto’s inherent value as a global transaction system with near instant finality and total transparency is being realized. nd now, with everything in place, we anticipate greater institutional exposure to crypto. The investment landscape is evolving, and digital assets are becoming a mainstay in the portfolios of investors worldwide.

Conclusion

Regardless of the positive reactions and some negative ones too, the United States approval of a Bitcoin ETF is a win for the crypto community of enthusiasts. It means crypto is here to stay whether you like it or not. It means acceptance has started amidst regulation.

The UAE will make the best of it given it has already prepared the ground work.

For the skeptics it means the financial freedom once espoused by the early adopters of crypto could be eroded in the future. The big guys are taking over, the BlackRocks of the world are now playing the game.

Yes Bitcoin will soar, but will it continue to democratize the financial system, that is another story altogether.

UAE crypto custodian Changer waives fees at its launch

UAE crypto custodian Changer waives fees at its launch

On its launch day, UAE based Changer, a crypto custodian is waiving custody fees for its premium wallet clients. Changer is providing individuals globally with a reliable, convenient, and accessible wallet to safeguard and manage their digital assets.

This comes after Changer received its license from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) allowing it to safe custody provisions, technology governance, and other system controls.

Changer’s launch of custody services for the safe storage of virtual assets comes in line with an increasing demand for independent custody and fund administration of digital assets from asset managers and asset owners, as this market continues to evolve.

Changer’s premium wallet and offerings are unique to the market being the only regionally built, independent custody provider. Changer’s premium wallet brings to the market a transparent, subscription-style monthly service for users based on the assets held under custody.

As Changer ramps up its operations, it is currently waiving custody fees for early adopters, which is planned to come into effect in Q1 2024.

Cryptocurrency investors from all over the world can easily open an account via the user-friendly Changer mobile application that can be downloaded from the App Store, Google Play Store, or Huawei App Gallery, and once verified, can use it to store their digital assets.

Changer is planning to introduce additional services in early Q1 2024 which will allow its users to convert their virtual assets into fiat currencies and hold those in escrow (client-money account) arrangements with a strategic bank partner which is yet to be disclosed.

Nadeem Ladki, Senior Executive Officer of Changer, commented on the launch: “We are happy to witness the successful and global launch of Changer.ae, as the region’s first locally built, independent virtual asset custody provider catering to individuals. For widespread adoption of digital assets, users need a safe, trusted counterpart; and we are committed to investing in the infrastructure and abiding by the regulations necessary to provide that peace of mind to our global users to be a leader in this space. We are proud to launch Changer.ae in the UAE, as the Nation has a well-balanced approach to digital asset adoption and financial regulation, thus making it a great market for our premium crypto custodian service platform. The UAE is a key driver of innovation and economic growth, encouraging more investors to enter the market, accelerate growth, enable collaboration, and continue to shape the future of finance”.

UAE based Venom Blockchain gets good news

UAE based Venom Blockchain gets good news

It seems good news are in order for UAE based Venom Blockchain. Alibek Garcia Isaaev, one of the founders and main investors in Venom Blockchain has been found innocent of all civil and criminal charges. Not only that but he will be receiving close to a billion dollars in restitution. This closes a very bleak chapter in the Venom Blockchain history and it comes at the right time.

In July 2023, Alibek Garcia Isaev, was pushed into the center of a very controversial legal entanglement which brought a lot of criticism not only to Issaev but inadvertently Venom Blockchain, and its Foundation.

In the media Issaev was called a “fraudster” but now he has been cleared of all charges, and it is Ilya Kligman, a Russian banker that has been found guilty and has been sentenced to prison in the UAE. UAE court convicted Ilya Kligman for a prison term in absentia. According to news sources, “He is set to face a prison term, extradition from Germany to the UAE, and the recovery of multibillion-dollar damages he caused to numerous companies through extortion, blackmail, and obstructing their normal functioning.”

It seems Kligman fled from Russia to Germany for multiple financial crimes. He is noted to have siphoned off billions of rubles from Russia and bankrupted dozens of Russian banks.

One of the companies owned by Kligman, Papaya Ltd, registered in Malta (with partners such as Mastercard and dozens of payment projects), will be seized. Lawyers have already filed requests with law enforcement agencies in Germany, Malta, and the Czech Republic.

On the other hand, all charges against Alibek Isaev, one of the main investors in Venom, have been dropped in both civil and criminal courts. Ilya Kligman will be obligated to pay Alibek Isaev compensation amounting to $940 million. This sum represents restitution for all the damage caused and is part of the efforts to restore justice and punish unlawful actions.

After serving his prison term in the UAE and settling all compensations, Kligman will face extradition back to Russia, to face sentencing there.

This is good news, after many have noted that Venom Blockchain has been quiet with no investments being made into startups. Now the case is cleared Venom will be able to resume its activity. Venom on launching early 2023 had noted that it would be launching a $1 billion venture fund.

UAE based Venom Ventures Fund, invested $5 million in Everscale, a premier blockchain platform that aims to solve the scalability issues bogging down the Web3 industry. It also acquired a crypto exchange naming it Venomex after it received its license from ADGM in October 2022.

Earlier this month Mustafa Kheriba, the Executive Chairman of Venomex, a UAE regulated crypto exchange and one of the initial investors and supporters of UAE based Venom Blockchain Foundation resigned from his position at Venom Foundation.

However it seems that there is light at the end of the tunnel for Venom Blockchain.

Binance executes first crypto triparty agreement with a bank partner

Binance executes first crypto triparty agreement with a bank partner

Binance in a recent press release dated November 30th 2023 and coming out of Dubai UAE has announced that it has successfully executed the world’s first cryptocurrency triparty arrangement with a third party banking partner. As per the release, the solution enables institutional investors to keep trading collateral, off-exchange in the custody of a third party banking partner. This is the first in a series of pilot projects initiated by Binance, which is currently the only cryptocurrency exchange offering such a solution.

Binance does not mention the name of the bank, but states that this arrangement directly tackles the issue of counterparty risk, the primary concern for institutional investors today. It replicates a framework common in traditional financial markets, which enables investors to proportion their crypto-asset allocation based on their risk tolerance. Collateral held with the banking partner can be in the form of fiat equivalent such as Treasury Bills which has the added benefit of being a yielding asset.

Catherine Chen, Head of VIP and Institutional at Binance, said, “Counterparty risk has long been a concern of institutional investors across the industry. Our team of crypto natives and traditional finance professionals has been exploring a banking triparty agreement for more than a year to address their concern. We’ve developed a solution that ensures our institutional clients can optimize their collateral and cryptocurrency investments, modeled after the traditional markets’ trading conduct. We are in close discussions with an array of banking partners and institutional investors who have also expressed strong interest in participating.”

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.

M2 crypto exchange first in UAE to cater to all retail clients

M2 crypto exchange first in UAE to cater to all retail clients

On the launch day of M2 crypto exchange and custodian the exchange which is fully regulated by ADGM (Abu Dhabi Global Market) is the first to serve retail clients in the UAE.

Abu Dhabi headquartered M2, which is licensed by the FSRA in the ADGM, has been recognized as a fully regulated Multilateral Trading Facility (MTF) and Custodian and is now able to on-board UAE residents and institutional clients.

M2 will be able to offer best-in-class trading products targeted at both retail and institutional investors in the UAE. The services coming soon will include, virtual Asset Custody where Investors will be able to manage their Virtual Assets in M2’s custodial wallets and offline storage facility, conveniently and securely with the easy-to-use on ramp and off ramp mechanism.

In addition clients will be able to trade AED to BTC & ETH . M2 will shortly be able to offer institutions and retail clients the ability to trade AED with leading cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH).

AED Fiat On/Off-Ramp: Allow the on/off ramp of AED with ease through its partnership with a local bank.

While other crypto exchanges have received licenses from ADGM none of them have been allowed to cater to retail clients or have they partnered with a UAE Bank.

Designed with regulatory compliance and customers in mind, M2 adheres to strict regulatory requirements set by ADGM in relation to consumer protection, technology governance, custody and all its trade activities such as market surveillance, transparency, settlement, and transaction recording.

The ADGM has been recognized as being one of the most respected regulated jurisdictions of virtual assets globally.  Taking its first steps on the journey to becoming a global FinTech champion for Abu Dhabi, and in line with Abu Dhabi’s Economic Vision 2030, M2.com is live and the team is setting its sights on being a leader in innovation whilst always maintaining regulatory compliance.

Stefan Kimmel, M2, CEO, comments: “We take pride in being a Abu Dhabi headquartered platform, licensed by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). This recognition underscores our commitment to our customers and to the FSRA’s notably high and sophisticated regulatory standards. We look forward to offering crypto investors in the UAE the opportunity to utilize our platform, including the ability to trade on/off-ramp AED and to trade market leading cryptocurrencies such as BTC and ETH by the end of the year.”

He added: “As positive sentiment returns to the crypto market, we want to offer crypto investors a trusted place to buy, sell and custody crypto assets. Regulation is our routine, and we will continue to demonstrate our commitment to compliance and regulatory excellence.”

Arvind Ramamurthy, Chief of Market Development at ADGM said: “We are delighted to welcome M2 to ADGM. We are confident that ADGM’s dynamic ecosystem and progressive regulations will enable M2’s vision, ADGM is the largest regulated jurisdiction of virtual assets in the MENA region and M2’s innovative solutions will add to our vibrant and trusted ecosystem of virtual asset trading venues, global exchanges and service providers.”

Notably M2 will be having its launch party today and will be featuring the Mayyas Dance show and superstar singer Guy Manoukian as they reimagine the future of digital assets.

The article was updated at 11:51 am GMT+2 removing ADCB bank reference.