UAE $2 billion crypto mining farm will be finalized in Q2 of 2023

UAE $2 billion crypto mining farm will be finalized in Q2 of 2023

As Phoenix Technology announced its entrance into a strategic exclusive regional partnership with Blockchain crypto mining product entity, they also noted that Phoenix Technology which embarked on establishing a $2 billion crypto-mining farm in the UAE, the biggest crypto mining project in the region will be completed in the next six months, or Q2 of 2023.  The press release notes, “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 and had also stated in a interview with Irena Heaver that the project would be finalized in the next six months. Almost a year later, and their latest press release states the UAE crypto mining farm will be launched in the next six months. 

The partnership with MicroBT, a technology company based on blockchain, will allow Phoenix Technology to sell WhatsMiner brand in the GCC countries (UAE, Bahrain, KSA, Oman, Qatar and Kuwait), Egypt and Turkey market.

Carl Agren, CEO of Phoenix Technology, commented, “I’m very excited about this strategic partnership. WhatsMiner by MicroBT is one of the leading brands for manufacturing mining equipment. They are already very successful in the rest of the world and would like to strengthen their presence in the MENA market with the support of Phoenix Technology.”

MicroBT, which was founded in 2016 and is headquartered in Shenzhen with R&D centers in Beijing and Shanghai, provides customers with high-quality products and services, and has become an industry leader in the field of blockchain servers.

Dr. Yang, Founder of MicroBT, said, “With our technical background, we noticed that blockchain technology is truly the key to a decentralized and advanced world. As the technology grows by the day, we are happy to partner with Phoenix Technology to spread these solutions worldwide, especially in the MENA region.”

According to the latest market forecast report by Technavio, the Cryptocurrency Mining Hardware Market share is set to increase by $12 billion from 2022 to 2027. The momentum of growth in the market is going to accelerate at a CAGR of 11.35%. The market will also experience a 10.71% Y-O-Y growth rate during this period.

The press release notes that given that the UAE is a crypto-friendly country, it is important to note that the mining business has dramatically grown in the territory. In fact, although Bitcoin mining started with solo miners quietly building up currency reserves on their home computers, those days are long gone.

UAE Midchain’s crypto exchange partners with UAE Bank to offer secure channel for crypto trading and investing

UAE Midchain’s crypto exchange partners with UAE Bank to offer secure channel for crypto trading and investing

UAE Midchain’s, crypto exchange for trading digital assets has partnered with UAE Al  Maryah Community Bank, the leading digital bank to provide a secure channel for investing and trading cryptocurrencies and digital assets through the bank’s establishment of escrow accounts in UAE dirhams to protect investors’ funds on cryptocurrency trading platforms and boost their trust.

Within the framework of this cooperation, Al Maryah Community Bank seeks to support cryptocurrency trading platforms by using artificial intelligence technologies to automate transfers of Escrow accounts while purchasing and trading transactions according to the highest standards of safety, reliability, and transparency, and to accommodate the needs of investors and enhance the trust in the cryptocurrency market. This will be monitored by the Central Bank of the United Arab Emirates and will be facilitated according to its regulations and laws to protect investors and to ensure the protection of investors’ accounts by separating them from the accounts of trading companies in order to avoid any potential risks.

This step contributes to achieving the strategy of the Al Maryah Community Bank to develop innovative and safe solutions for digital investment in line with the vision of the Abu Dhabi Global Market to strengthen the UAE’s economy and Abu Dhabi’s leading status as a global financial center, which was symbolized by the concept of the “Falcon Economy” that was announced during the activities of the “Abu Dhabi Financial Week”.

On this occasion, Mohammed Wassim Khayatah CEO of Al Maryah Bank stated, “We seek to protect users of local trading platforms from any potential risks, in accordance with the regulations of the Central Bank of the United Arab Emirates, and as part of such efforts, we are pleased to cooperate with “MidChains”, one of the first local trading platforms for cryptocurrencies and digital assets that is fully licensed by the Abu Dhabi Global Market, in order to provide safe Escrow accounts that protect investors’ funds and separate them from trading companies’ accounts, thus protecting transfers, transactions, and balances of funds in cryptocurrency trading.

In return, Basil Al-Askari added, “If cryptocurrency is to become mainstream, it is clear that mainstream players will need to be involved. Our partnership with Al Maryah Community bank comes in line with similar partnerships being forged across the virtual asset industry. Traditional institutions are working alongside exchanges to expand access to this exciting and innovative new asset class. As one of the only fully licensed exchanges in the world we can offer banks a trusted platform partner with regulatory oversight to provide a feasible way into the virtual asset space for their existing customers and also help the bank attract a whole new type of crypto savvy consumer.”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Which homegrown MENA crypto exchanges will do proof of reserve and who was exposed to FTX

Which homegrown MENA crypto exchanges will do proof of reserve and who was exposed to FTX

It all started with the FTX downfall and then Binance’s Co-Founder and CEO call for crypto exchanges to carry out proof of reserves. Since then crypto exchanges such as Binance and crypto.com have provided wallets addresses tied to company wallets while Nansen blockchain analytics firm is creating a display of crypto exchange proof of reserves dashboard that currently includes Binance, crypto.com, OkX, Kucoin, Deribit, Bitfinex, Github, and others.

But what are locally homegrown crypto exchanges in MENA doing. Will they carry out proof of reserves, do they see it as the solution to bring trust back to crypto exchanges, and who has exposure to FTX?  

MENA Crypto Exchanges and Proof of Reserves

Bahrain based CoinMENA Talal Tabbaa and Dina Sama’an when asked by LaraontheBlock about if they will be doing proof of reserves stated, “This FTX news is a major setback for our industry and highlights the importance of regulation. This is why CoinMENA was established under the Central Bank of Bahrain, with a robust regulatory framework and compliance requirements. We go through regular audits and have to submit periodic reports to the regulators. More importantly, we keep our user funds in segregated accounts and we don’t offer leverage or margin which severely increases the risk profile of an exchange. We see crypto as a long-term investment and will continue to manage our risk prudently to build a sustainable and profitable business.”

Tabbaa adds, “CoinMENA is also reaching out to Nansen who is heading this effort globally to see the best way for it to be done.”

UAE regulated BitOasis CEO Ola Doudin states, “We believe that locally regulated platforms that follow industry best practices with proper oversight and supervision by their local regulators is the best way to ensure consumer protection and proper risk management practices.”

Vasja Zupan, President of UAE based Matrix Exchange in a reply to the question of whether they will do proof of reserves states, “We simply hold 1:1 client assets in our custody that is literally reconciled daily and regularly reported and checked by regulator and external auditors.”

Basil Askari Co-Founder of UAE MidChains has a similar reply, “In terms of proof of reserves we are already doing this on a daily basis with our regulator by providing daily client account reconciliations.”

Ola Doudin in her reply to this question stated, “BitOasis holds client assets in segregated client money accounts and custody environments. We’re an audited company that maintains the highest level of security and industry practices in storing and maintaining client assets one to one backed. We do not engage in any fractional reserve practices, proprietary trading, lending, and borrowing and we do not have an exchange token.”

Christopher Flinos, Chief Executive Officer of Hayvn crypto exchange in UAE “We already do proof of reserves. Our client’s crypto stays in segregated client wallets and our clients have always had access to their reserves. The firm in addition keeps shareholder funds in USD We hold no treasury in any coins not even stablecoins.”

Will Proof of reserves bring trust back to crypto exchanges?

Zupan believes that proof of reserves is totally useless without “proof of liabilities”. As he explains, “Proof of reserves alone should not bring trust back without 3rd party reviews and regulatory oversight over centralized services. I believe that CeFi needs a strong regulatory overview in combination with strong transparency and DeFi needs total transparency with independent reviews (not everyone can evaluate complex software and framework).”

Basil Askari co-founder of MidChains believes it is not enough to publish numbers. He explains, “Regulation and strict supervision by regulators on how client funds are used, is and has always been critical, as in TradeFi.”

Talal Tabbaa believes that the way crypto exchanges are carrying out proof of reserves at the moment is missing an important element. He explains, “In accounting when you provide information on your assets, you also provide information on your liabilities. Crypto exchanges need to do both proof of reserves and proof of liabilities preferably on a blockchain in real-time.”

Flinos agrees that with the current behavior of crypto exchange leadership trust is continuing to be damaged and what is need is strong regulation, control and corporate governance.

Exposure to FTX

In the past both CoinMENA and BitOasis had in their investment rounds received investment from FTX Ventures through Alameda Research. As such CoinMENA in a joint statement from both Talal Tabbaa and Dina Sam’an, Co-Founders, to LaraontheBlock clarified the following:  “FTX’s Investment arm Alameda Research invested $1 million in CoinMENA’s $9.5m seed funding round in 2021. All the funds were received prior to the close of the seed round. Their stake is less than 3% and has no voting rights. In light of the recent news, we have offered to buy back their minority stake.”

BitOasis also made a public blog post where it stated the following: “BitOasis confirms that it has no commercial relationship or exposure with Alameda Research (Alameda) or any other FTX entity. Accordingly, recent events at FTX and Alameda do not have any bearing on our business, or our ability to provide our customers with a safe and secure trading experience. In 2021, Alameda participated in BitOasis’ Series B financing round. As a result of its investment Alameda holds a 2.2% shareholding in BitOasis through Alameda Ventures Limited. Alameda is not represented (nor has it ever been) on BitOasis’ board of directors or on any governance forum or committee in any capacity. The shareholding is small and hence creates no exposure to our business.”

Matrix, Hayvn and MidChains founders confirm that they have zero exposure to FTX. Zupan stated, “We don’t have any exposure to FTX or any related party or similar protocols.” Al Askari as well confirmed, “Both our client funds and corporate assets are not exposed. We keep our (and our clients) funds in a safe boring 1:1 holding.” Flinos confirmed that they do not deal with unregulated counterparts.

Two crypto exchanges, RAIN in Bahrain and Veromex in UAE have not yet replied to the queries posed, if and when they do reply, their responses will be added.

Take Away

While up until now international exchanges have always looked more attractive because of their liquidity and the amount of crypto they list as well as their geographic coverage, it seems that those regulated in the region whether in UAE or Bahrain are looking more attractive because of their adherence to strong regulatory bodies.

A lot of news is coming out that international exchanges undertaking so called proof of reserves are not being transparent. For example Crypto.com’s cold storage revealed a suspicious transfer of 320,000 Ether worth $404 million, to Gate.io.  Kris Marszalek, CEO of Crypto.com assured traders that the transfer was accidental; funds were to be moved to a new cold storage address. Experts allege that the transfer helped Gate.io show its proof of reserves of user funds shortly after the transfer. Even more so it seems that 20 percent of crypto.com reserves are in Meme Token SHBB.

This also happened with Huobi. It was noted that after Huobi released the asset snapshot of the asset reserve, 10,000 ETH was transferred from Huobi to Binance and OkX deposit wallets. (Etherscan.io)

Binance CEO CZ also made an interesting tweet today November 13th 2022 where he says Binance is not just a CEX (Centralized Exchange). This comes as the crypto mood globally moves towards DEX (Decentralized Exchanges). In his tweet he gives advice on how to store crypto in your own wallet, and refers to trustwallet while saying that Binance is not just a CEX but provides other options.

In the end, the future is in decentralized exchanges, smart contracts, and blockchain databases for proof of reserves such as Etherscan.io and others. Crypto was never the culprit, it was molding crypto into a traditional financial sector that was.

UAE Mubadala Capital leads $70 million investment in Web3 Fintech startup Ramp

UAE Mubadala Capital leads $70 million investment in Web3 Fintech startup Ramp

UAE based Mubadala Capital led a Series B funding round of $70 million for Ramp Network, whose claim their mission is to make Web3 a reality by enabling mainstream adoption of  products and services offered by pioneering blockchain ventures.

Ramp Network does this by offering a payment infrastructure that connects crypto and traditional finance.

“Ramp has established a clear lead in the crypto gaming space by delivering a superior user experience, leading conversion rates and strong regulatory compliance,” said Frederic Lardieg at Mubadala Capital Ventures.

Among the investors was Korelya Capital,  Balderton Capital which led its $53 million Series A, and new investor Cogito Capital.

The firm has now raised over $120 million in the past year. It offers a payment product that lets users buy cryptocurrencies inside any application or website, essentially the Web3 answer to services like PayPal (PYPL) or Stripe. Its customers include GameStop (GME), crypto-based fantasy sports company Sorare, play-to-earn online game Axie Infinity and Ledger, maker of hardware crypto wallets.

Ramp plans to use the capital to hire for a number of senior roles. It has about 70 open positions, which means its staff will number 200, Co-founder and CEO Szymon Sypniewicz told CoinDesk in an email. The funding will also go toward adding local fiat currencies and payment methods as part of a global expansion.

Sypniewicz states, “Our goal is to keep building infrastructure to make Web3 easy and accessible. Despite current market conditions, we see a growing trend of web2 companies looking to move into Web3, and we’re uniquely positioned to help them through this transformation. That’s why we’re doubling down on growth.”

“Local payment methods reduce friction and costs for lower-income regions, while being more intuitive and accessible for more people in the world,” Sypniewicz said. “This is particularly true in LatAm and Asia, both regions that have seen explosive crypto adoption, and that we consider our next strategic targets.”

As part of the investment, Mubadala Capital’s Frederic Lardieg has joined Ramp’s as a director, and Korelya Capital partner Paul Degueuse joined as an observer.

Ramp said payment volumes have increased 240% year-over-year, and the number of unique users coming from integration partners rose by more than seven times.

It was not surprising to see Mubadala Capital invest in Blockchain crypto entity, given its open sponsorship of Token 2049 in London.

MasterCard chooses two UAE based startups for its Crypto Start Path Program

MasterCard chooses two UAE based startups for its Crypto Start Path Program

MasterCard Start Path Program chooses two of the newly announced seven start-ups from UAE. They include Abu Dhabi digital asset exchange Fasset, as well as Dubai based TBTM (Take Back the Mic) Studios which is building the world’s first blockchain-based media fintech, turning culture into currency by rewarding fans and compensating creators for building communities around great content.

In July 2022, Middle East and UK crypto exchange Fasset announced its collaboration with Mastercard to expand its financial reach in Indonesia, after the exchange raised $22 million USD. Fasset currently has operations in Bahrain and the United Arab Emirates. Fasset was granted authorization by the Central Bank of Bahrain to test asset tokenization in the country’s fintech regulatory sandbox.

MasterCard in its endeavor to enhance user experience in NFTs, Blockchain gaming and metaverse has chosen to collaborate with innovative fintech entities working in the Web3 and crypto sphere. 

MasterCard is providing through its program an express lane for Web3 and crypto startups to grow and an ecosystem for them to thrive. As per the press release, “Through the Mastercard Start Path global startup engagement program, we work with digital asset, blockchain and cryptocurrency-based companies that share a vision to make blockchain technology and digital assets more accessible. These companies are making strides to bridge the gap between Web2 and Web3 and meet consumers where they are today. We’re welcoming a new cohort of startups to ease access to digital assets, build communities for creators and empower people to innovate for the future through Web3 technologies. These companies will join the more than 350 companies from 40 countries that have participated in Start Path since 2014.”

Other start-ups include Singapore based Digital Treasures Center, U.S. based  Loot Bolt, Quadrata, as well as Uptop in addition to Columbian based Stable.

The newest Start Path cohort will engage in growth-essential opportunities including technology collaboration, mentorship, access to channels and customers, and the opportunity to accelerate their digital asset innovations and expand into new markets. 

Since its inception in 2014, Mastercard Start Path has fielded applications from over 1,500 startups every year and the program has helped more than 350 businesses attract well over $3.5 billion in funding.

Blockchain, digital asset and crypto companies are invited to apply for the Mastercard Start Path Crypto program.

The home of Bahrain’s F1 Grand Prix now accepting crypto payments

The home of Bahrain’s F1 Grand Prix now accepting crypto payments

Bahrain international Circuit is now accepting crypto payments using Bahrain’s Eazy Financial services, which has a partnership with Binance.

Using EazyPay, BIC will be provided with POS terminals at BIC outlets that will accept all types of debit and credit cards from Visa and MasterCard as well as the latest methods of payment using crypto assets via Binance application.

BIC is now the first International Circuit in the World to accept crypto assets Payments in a regulated, secure and extremely fast manner. 35,000 fans attended the F1 Grand Prix race in 2022 which is held at Bahrain international circuit.

The benefits of bringing in EazyPay to BIC will ensure simple and effective transaction journeys for customers, with a partner which is able to ensure first-class service.

“We are pleased to have brought on Eazy Financial Services as a POS service provider,” BIC Chief Commercial Officer Sherif Al Mahdy said.

“The services they offer will benefit our operations greatly while offering a smooth, hassle-free experience for our customers. We look forward to further building on our relationship for the benefit of both our companies.”

Nayef Tawfiq Al Alawi, Founder & CEO of Eazy Financial Services, said they are very proud to become the partners of the Bahrain International Circuit, the home of Motorsports in the Middle East, by providing EazyPay competitive, and innovative payment services.

Tameem Al Moosawi, General Manager of Binance Bahrain, said they are excited to welcome ‘The Home of Motorsport in the Middle East’ to the Web 3 Economy stating “This agreement enables BIC to become the first international racing circuit in the world to accept crypto-asset payments through Binance Pay’s partnership with EazyPay, showcasing how the Kingdom of Bahrain is continuously in the forefront, supporting regional & global players in keeping up with global trends.”

In late September 2022, Bahrain EazyPay, a payments solution provider, partnered with Binance’s Binance Pay to launch a regulated and approved crypto payments service offering in the Kingdom.

At the time, Nayef Tawfiq Al Alawi, Founder, MD & CEO of Eazy in Bahrain stated on LinkedIn,  “Now you can pay in stores with any preferred Cryptocurrency using Binance App.  A special thanks goes to Central Bank of Bahrain, Binance and Eazy Financial Services B.S.C (Closed) teams.”

The GCC and MENA region very attractive destination for crypto mining

The GCC and MENA region very attractive destination for crypto mining

Crypto mining is an integral part of the development of crypto economies. As the MENA region opens up its economy to digitization and crypto-related activities and as the world is challenged by an ongoing energy crisis, MENA is probing to become an attractive destination for crypto mining.

While the biggest crypto mining markets are currently in the USA, China, Kazakhstan and Canada, the energy crisis and the crypto bear market could help the GCC become a leading crypto mining hub.

Mohamed El Masri, founder and CEO of Permianchain, which operates Bitcoin mining data centers in Canada using wasted energy, states, “The adoption and implementation of blockchain data center infrastructure can support the digital stability and financial security of the GCC region. Hypothetically, the GCC has the opportunity to attract close to $1.0 trillion in economic growth by laying the groundwork for powering the digital economy.”

El Masri confirms the main challenge is calling out the financial regulators, mainly in the financial free zones, to stop taking the “enforceability approach” and take a “regulate-first approach.”

Nonrenewable resources to boost mining 

El Masri also mentions that given that the GCC is an oil and gas-rich region, there is an abundance of natural gas energy being wasted each day. Notably, such gas energy supports the implementation and commissioning of low-cost power plants to attract bitcoin mining companies from all over the world to set up in the region.

According to him, this will allow the region to become a leader in providing field-generated electricity “to power the future digital economy all while reducing emissions and decarbonizing the GCC’s oil and gas sector.”

The World Bank has reported that the MENA region accounted for 40% of the world’s flaring, with Iran, Iraq and Algeria generating 75% of MENA’s flaring. Meanwhile, Saudi Arabia, Kuwait, UAE and Qatar have low flaring intensity.

Adopting new technologies

Munaf Ali, founder and CEO of UAE-based Phoenix Group, involved in crypto mining equipment sales and projects, believes MENA is fast moving toward crypto and blockchain adoption.

“The Middle East is fast helping the global diversification of jurisdictions which are friendly to operate in,” Ali states. “This goes for countries where crypto firms can set up, whether they are crypto exchanges or mining operations.”

Ali confirms that GCC governments have started to address this by recognizing these new business activities and are issuing licenses to crypto market participants.

The Phoenix CEO espoused other benefits, including job creation, the development of a green renewable energy industry, and the generation of crypto/USD for circulation inside the local economy which in turn boosts economic activity.

Growing interest in mining

UAE investment firms have also shown interest in crypto mining investments. Nabyl Al Maskari, executive chairman of Al Maskari Holding, in a panel discussion during the Security Token Summit in June 2022, noted that there will be significant crypto mining investments happening in the UAE.

“We will have significant crypto-mining investments because the UAE is a low-cost energy producer,” Al Maskari certifies. “We are in the solar belt and have nuclear power with two reactors online. We can as such mine green Bitcoin or other tokens that come out.”

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. 

Pierre Samaties, global head of Crypto Economy and Energy, reaffirmed that Bitcoin mining in the region is growing.

“Given we have a huge difference between the summer load curve and the winter load curve, Bitcoin mining helps to support renewable energy investments to increase utilization of the asset by using it during downtimes for Bitcoin mining,” Samaties says. The executive says this helps to balance the energy system.

Samaties also affirms that Bitcoin mining is seen as a strategic asset, a cornerstone for building a crypto economy in the region.

For those who would like to read or share this article in arabic it is also on Cointelegraph MENA 

UAE Vision Night club will allow crypto payments, offer NFTs and metaverse experience

UAE Vision Night club will allow crypto payments, offer NFTs and metaverse experience

One of China’s biggest entertainment companies, WanTing Group, will be opening its venue in the GCC, with VISION in November 2022. The night club will located at The H Hotel Dubai, VISION will be the first night club build around the metaverse, where payments can be made in crypto and NFTs can be used and bought. It will also be  the only nightclub in the world to achieve cross-border collaboration with the famed Jacob&Co brand with the launch of the VISION x Jacob&Co wristwatch.

Club-goers and crypto-owners will be able to turn coins into cocktails and enjoy a plethora of exclusive benefits at the venue, with NFTs also available for purchase and for use.

Further elevating the guest experience, VISION will launch in partnership with Jacob&Co, the renowned luxury jewellery and wristwatch brand, to create exclusive VISION x Jacob&Co timepieces, that will be available to those who purchase the venue’s unique NFTs. An exclusive branded VIP table will also be established at VISION along with other Jacob&Co elements.

The ambiance at VISION exudes opulence set in a futuristic space, featuring laser beams and LED lights that radiate through the entire venue. Guests can look forward to visionary décor and entrancing techno beats blended with Hip-Hop and Pop favourites that are sure to transform any night into an other-worldly experience. Situated at the luxurious H Hotel Dubai, VISION will be an extraordinary destination with a vibrant dancefloor as well as options for intimate, private booths and rooms for VIP clientele.              

Chris Wang, Chief Executive Officer of VISION and Hang Zhou WanTing Catering & Entertainment Management Co., stated, “We are extremely excited to be launching our first venue in the region in Dubai. There is so much potential in the Middle East in terms of nightlife entertainment, and we look forward to presenting a celestial nightlife experience for guests and clients with VISION. At the venue, we plan to provide club-goers space to connect through light and sound, turning their evenings into a stellar visual and audio haven.”

Kevin O’Leary’s Cypher crypto Fund is in partnership with UAE’s Cypher Capital

Kevin O’Leary’s Cypher crypto Fund is in partnership with UAE’s Cypher Capital

In September 2022, Kevin O’Leary announced that he was launching a crypto fund in UAE called Cypher with a lead investor from the UAE, yet he did not mention who. Today it has become public knowledge that the lead investor is no other than UAE Cypher Capital.

Vineet Budki, Managing Partner and CEO of UAE’s Cypher Capital, announced that the fund Kevin O’leary had mentioned at Converge22 was in partnership with Cypher Capital.

In his LinkedIn post he states, “We look forward to an amazing relationship with Kevin O’Leary and Paul Palandijian, CEO of O’Leary Ventures and as always the super human effort of Bijan Alizadeh Founder of Cypher Capital and Munaf Ali, Founder and CEO of Phoenix Group.”

He adds in his post, “The new bigger Cypher Capital fund is coming and we are happy to support the Web3 and Blockchain ecosystem globally and in MENA.”

It seems that the announcement was also made by Alizadeh during Gitex 2022 at TDeFi stage. 

Kevin O’ Leary, nicknamed “Mr. Wonderful”, a Canadian businessman, entrepreneur, and television personality and an advocate of crypto stated at Converge 22, “I recently became a citizen of the United Arab Emirates to work freely in a region that has attracted investment by some of crypto’s heaviest hitters, including exchanges FTX, Binance and Crypto.com. The new all-Web3 fund’s lead investor comes from the United Arab Emirates.  There’s a tremendous amount of capital and interest there to invest in this space.”

UAE Cypher Capital which launched in March 2022 is a private venture capital firm rooted in the UAE and MENA region. At the time of its launch it noted that it had a USD100 million seed fund that would focus on investments in blockchain, crypto and other digital asset projects with genuine value propositions.

At the time Bijan Alizadeh, Founder and General Partner at Cypher Capital stated, “We are very proud and honored to be launching our first and the biggest crypto, digital asset and blockchain private seed fund from the UAE and the Middle East Region.  This fund reflects our vision to be the leading global partner for projects in the blockchain, crypto and the digital asset community. We will collaborate closely with our portfolio projects, offering them access to our network and equipping them with our knowledge, as well as investing alongside other venture capital partners into innovative blockchain, crypto and digital asset projects.”

With this latest partnership it seems that Alizadeh has kept his promise and is working alongside other venture capital partners to help grow the blockchain and digital asset ecosystem.

Cypher Capital had already invested USD1.5 million into UAE’s Crypto Oasis Sentio, showcasing its belief that cooperating with other private venture capital funds builds the blockchain ecosystem. “