UAE Enjinstarter launches AYA Web3 Launchpad to tackle climate challenges

UAE Enjinstarter launches AYA Web3 Launchpad to tackle climate challenges

UAE Enjinstarter launched in 2021 as a Launchpad, incubator, crowd funding, and advisory platform for Web3 metaverse, gaming, entertainment and impact and sustainable projects has announced the launch of AYA, ( means miracle in Arabic) dedicated to empowering innovators to tackle climate challenges.

“MENA is at the forefront of climate change, with temperatures expected to rise by 2.5 degrees by 2050. The UAE is emerging as a global leader in sustainability and Web3, attracting builders, investors, and climate warriors,” says Prakash Somosundram, our CEO.

With a focus on areas like reforestation, mangrove conservation, and sustainable agriculture, AYA aims to bridge the climate financing gap, offering a platform for high-impact startups to access innovative technologies, raise funds, and leverage tokenized carbon credits.

At the beginning of 2023, Enjinstarter appointed Vasseh Ahmed as the new Managing Director to lead the Web3 efforts in the MENA region. Vasseh spoke with LaraontheBlock discussing Enjinstarter’s plans to help companies reach their Web3 ambitions while positioning Enjinstarter as the go to provider for impact and sustainability projects.

In the interview Ahmed states, “Web3 has a major role to play in addressing the climate crisis. Carbon credits, in particular, can benefit from Web3’s underlying technology to increase transparency and accessibility. We want to support projects that are looking for ways to shift incentives away from exploitation and toward preservation and regeneration.”

In May 2023 EnjinStarter MENA, a web3 Launchpad and incubator, became the first Launchpad globally to receive initial approval by Dubai’s virtual asset regulatory authority.

UAE based Solarix Ventures is seeking to invest in Web3 technology entities and will be participatiog at the Abu Dhabi Family office Summit on the 23rd of November 2023.

Crypto mining firm Phoenix Group sells 10% of its shares to Abu Dhabi IHC

Crypto mining firm Phoenix Group sells 10% of its shares to Abu Dhabi IHC

UAE based Phoenix Group has sold 10% of its company shares to Abu Dhabi conglomerate International Holding Company’s subsidiary.

IHC’s wholly owned unit, International Tech Group, has entered into a definitive agreement to buy 10% stake in Phoenix Group, according to a disclosure on the Abu Dhabi Securities Exchange (ADX).

The company is currently completing all required procedures and obtaining regulatory approvals to complete the transaction, the disclosure noted.

This announcement comes at the heels of an agreement between Muscat-based Green Data City and Phoenix Group to develop a $300 million crypto-mining farm in Oman. The 150-megawatt farm, which will be one of the largest crypto-mining data centers in the region, will be installed in Green Data City, the entities said in a joint statement. The farm is expected to be fully operational by the second quarter of next year.

Pheonix Group had announced on several occasions that it was seeking to have an IPO ( Initial Public Offering). With the 10% acquisition by IHC this could well put the IPO on hold.

Phoenix provides crypto-mining equipment distribution and hosting services. The company has a portfolio of mining facilities in the Middle East, Europe, the US, and Canada.

In the first half (H1) of 2023, IHC  generated net profits valued at AED 10.39 billion, up from AED 10.35 billion during the same period a year earlier.

This is a reflection of Abu Dhabi’s government interest in crypto mining. Prior to this Marathon Digital a digital asset mining entity announced in January 27th 2022, 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.

Marathong Digital will use fossil fule offset or nuclear to power bitcoin mining operation.

UAE Public Prosecution discusses money laundering crimes using virtual assets

UAE Public Prosecution discusses money laundering crimes using virtual assets

The UAE Public Prosecution is launching a forum entitled  “Financial Crimes Foresight Forum” on 11th October 2023, to discuss money laundering crimes using Virtual Assets. The event will be organized in anticipation of the upcoming International Summit on Metaverse Governance and Emerging Technology, scheduled to commence early next year in 2024.

The forum aims to study and analyze trends in financial crimes and explore proactive preventive measures based on modern and future global trends. It also seeks to explore the future of financial crimes in all its forms and delve into in-depth research to present them as topics for the upcoming International Summit on Metaverse Governance and Emerging Technology.

The forum presents an opportunity for exchanging experiences and enhancing awareness and commitment to combating various forms of financial crimes, especially those based on virtual assets. Experts will discuss the evolution of financial crimes related to virtual assets to shed light on achieving a balance between technological advancements and financial security guarantees. Moreover, it aims to develop scenarios for future information security challenges in the financial and banking sectors and the cyber risks they may face.

The forum will host a select group of speakers from the UAE Public Prosecution, the Securities and Commodities Authority, the Cyber Security Council, the Executive Office for Anti-Money Laundering and Counter-Terrorism Financing, the UAE Financial Information Unit, the Dubai Police General Headquarters, the Economic Security Center of Dubai, the Dubai Public Prosecution, and the Virtual Asset Regulatory Authority of Dubai.

Qatar public consultations for its digital assets and investment tokens legislation

Qatar public consultations for its digital assets and investment tokens legislation

As expected The Qatar Financial Centre (“QFC”) Regulatory Authority (“Regulatory Authority”) and the Qatar Financial Centre Authority (“QFC Authority”) have published a consultation paper for their digital assets framework which seeks to regulate investment tokens.

QFC is seeking feedback for the proposed digital assets legislation at a date no later than January 2nd 2024 which means the final legislation will not be available until the first or second quarter of 2024. This comes at the heels of QFC’s launch of its digital assets Lab which will be launched on October 29th.

Aditya Kumar Sinha,  Head Fintech & Digital Innovation at Qatar Financial Centre (QFC) Authority · states on LinkediN, “ The Qatar Financial Centre Regulatory Authority (QFCRA) and the Qatar Financial Centre (QFC) Authority have jointly released a Consultation Paper, and we’re seeking your insights and feedback on our proposals to introduce a QFC Digital Assets Framework. This comprehensive framework is being developed in phases, with phase one dedicated to establishing legislation for a QFC tokenization framework. To make this vision a reality, the QFC Regulatory Authority and QFC Authority have meticulously prepared a range of draft legislative instruments.”

As part of the digital assets legislation is rulebook for Investment Tokens. These rules define the treatment of investment tokens representing specified products, making their activity subject to authorization and supervision, and amendments to existing rules to accommodate investment tokens.”

The Regulatory Authority and the QFC Authority has developed a QFC digital assets framework designed to achieve the following objectives,  develop a legal and regulatory framework for digital assets through the establishment of a tokenization framework in the QFC that will provide legal certainty and a trusted technology environment for digital assets;  provide legal recognition of digital assets and address issues such as ownership of the underlying assets, custody arrangements, the transfer of ownership, trading and exchange of digital assets, smart contracts, among other relevant matters.

It also seeks to develop a trusted technology infrastructure that embeds the standards necessary to ensure trust and confidence among consumers and support for the framework from high quality service providers; and develop a framework that delivers certainty and promotes trust and confidence in digital assets, the market, and the service providers.

QFC authority as mentioned based their proposed framework on benchmarks in Lichtenstein, Switzerland, the European Union, the Monetary Authority of Singapore, various states, and offshore financial Center frameworks in the GCC and other benchmark regulatory jurisdictions.

Henk Jan HoogendoornHenk Chief Financial Sector Officer at Qatar Financial Centre (QFC) Authority added in a post on LinkedIn, Our ambition is to have a solid Digital Asset Framework where real Asset can be tokenized with trusted tokenization partner and supervised by Qatar Financial Centre (QFC) Authority and Qatar Financial Centre Regulatory Authority (QFCRA) .”

As per the documents the proposed digital assets framework is being developed on a phased basis with phase one focusing on the establishment of legislation to provide for a QFC tokenization framework.

In terms of investment tokens, they are tokens that represent underlying’s that are Specified Products under the QFC Financial Services Regulations (“FSR”). They provide for any person who carries out an activity in relation to such a token to be conducting a regulated activity, requiring authorization and supervision by the Regulatory Authority.

So what is the Investment Tokens Rules 2023? It introduces enabling provisions for tokenizing rights (described as investment tokens), in specified products under the QFC Financial Services Regulations (“FSR”) and certain derivatives and Islamic financial contracts declared to be specified products in Regulatory Rules.

Stablecoins, CBDCs, and crypto are not under the regulatory guidelines and as such are prohibited. As per the legislation framework, “

As noted a cryptocurrency token that is used as an alternative to fiat currencies but is not issued or backed by any governmental authority and does not represent any ‘off-chain’ property, is an example of an excluded token. This includes tokens commonly referred to as fully backed stablecoins, as these are regarded as substitutes for currency but are not themselves fiat currency or monetary instruments.”

Yet regulated token services include token validators, token generation services, token custody services, operation of a token exchange, and token transfer services fall under the activities within the digital asset framework.

In addition the proposed amendments to the Special Company Regulations enable Special Companies to conduct the additional activity of issuing certificates, receipts, or other instruments, which would include tokenized instruments. This amendment is proposed on the basis that parties conducting a transaction in digital assets from the QFC (i.e., by way of example, a sukuk or bond Token issuance) may use a Special Company for this purpose.

This comes after QFC has commenced working with blockchain, DLT, and consultancies to develop their digital asset and DLT framework infrastructure.

This week Dubai’s DIFC (Dubai International Financial Center) also released its digital assets consultation paper.

Global Blockchain Congress is back to Dubai in December 2023

Global Blockchain Congress is back to Dubai in December 2023

After a very successful first European Edition Global Blockchain Congress, Agora Group is coming back to Dubai for its 12th GBC on December 11 and 12, 2023!

The Global Blockchain Congress leverages the experience gained through the hosting of the first 11 editions of the event in Dubai and the international editions in Vietnam and the UK to ensure maximum return on investment for all our sponsors. The previous editions of the Global Blockchain Congress were a tremendous success and we were able to host 1,500+ investors and 300+ blockchain startups and were able to raise millions in funds for our participating projects

The theme of this edition is: “Will the Next Bull Market Be Different?”
Topics of the Congress:
• Land of Decentralized Milk and Honey? Why Crypto
• Companies Are Warming to the United Arab Emirates.
• Digital Assets Outlook 2024.
• Web3 Gaming and the Path to Open Metaverse.
• DeFI, CeFi and ReFi – What’s Next?
• Blockchain Marketing: Shaking Up the Game with Trending Strategies

The event is a closed-door, exclusive congress that can be attended by invitation only where the format of the event is focused on pre-arranged one-on-one meetings between projects and investors.
Agora will be hosting more than 150 Investors, 25 Projects, 60 A-list Speakers & 30 Media Partners from all over the world.

Learn more about the event: gbc-uae.com

Register here: bit.ly/12th-GBC

Deus X Capital launches with $1billion in assets and an office in UAE

Deus X Capital launches with $1billion in assets and an office in UAE

Deus X Capital with offices in the UAE has launched with $1 billion in assets according to an article published in CoinDesk. As per the article the family office backed investment firm launched on October 2nd with Tim Grant as CEO.

Tim Grant previously headed EMEA at Mike Novogratz’s Galaxy Digital. Before that he was CEO of SIX digital exchange

Deus X capital will deploy capital, in private equity, venture capital and fund allocation opportunities in the digital asset, blockchain, fintech and institutional capital markets sectors.

According to information on the website Stuart Connolly has been appointed chief investment officer.

In a statement to CoinDesk Tim Grant stated, “The existing financial system is expensive, unwieldy and works for the few, not the many. We are committed to investing in and building the most innovative digital asset, fintech and capital markets businesses.”

The firm’s existing investments include stakes in publicly listed companies such as crypto financial services firm Galaxy and asset manager Hilbert Group (HILB). It also has allocations to a number of hedge funds.

As per Deus X Capital website it invests globally and has a presence in Malta, London and the UAE.

100K USD prized Web3 Hackathon in Dubai UAE with Bybit crypto exchange and DMCC

100K USD prized Web3 Hackathon in Dubai UAE with Bybit crypto exchange and DMCC

Crypto exchange Bybit, which recently launched its headquarters out of Dubai UAE, but is still seeking its regulatory license has once again forged a partnership with DMCC ( Dubai Multi Commodities Center) to launch a $100K hackathon to develop the Web3 ecosystem in Dubai.

The hackathon will take place in Dubai on 22 November 2023 and is the latest milestone between DMCC and Bybit since both sides announced a strategic partnership in June to accelerate the mass adoption of crypto and web3 in Dubai.

During the final stage, up to 10 teams will compete to develop creative technical solutions to a range of challenges within the fields of artificial intelligence (AI), gaming and information security.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC said: “Dubai is fast consolidating its position as the most important Web3 hub in the region, and the DMCC-Bybit hackathon is the perfect testament of this in action. As Dubai continues its transition into an innovation-driven and knowledge-based economy, furthering the development of Web3 technologies is vital. This will be the largest hackathon of its kind in the region, pioneering the latest technical innovation in areas such as AI and gaming. We are delighted to continue our partnership with Bybit as we look to boost our Web3 community at DMCC Crypto Centre.”

Ben Zhou, Co-founder and CEO of Bybit added: “Tapping into the high levels of Web3 innovation taking place in Dubai is a key pillar of our strategy as we continue growing our global market share. This partnership with DMCC is enabling us to do exactly that, so we are excited to host the largest hackathons that this region has seen and further build our symbiotic relationship with the DMCC Crypto Centre.”

Prior to this Bybit contributed $250K scholarship fund to the American Univeristy of Sharjah.

The new partnership for the hackathon comes as Bybit suspends its services in the United Kingdom after financial regulator’s final warning. Bybit had also announced a similar winding down of services in Canada in May 2023.

Nomura’s Laser Digital crypto broker takes the UAE by storm

Nomura’s Laser Digital crypto broker takes the UAE by storm

Nomura’s crypto broker, and crypto investment service provider, Laser Digital which recently received a full license from Dubai’s virtual asset regulatory authority, VARA has now received an in principle approval for a license from Abu  Dhabi’s ADGM ( Abu Dhabi Global Market).

As per the recent news from ADGM, Laser Digital was granted an in principle approval by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), with formal regulatory licensing subject to the fulfillment of a number of conditions. When all IPA conditions are fulfilled, Laser Digital will be granted the Financial Services Permission to provide broker-dealer services and asset/fund management services in relation to virtual assets and traditional assets.

Laser Digital was launched last autumn by Nomura and was co-founded by Steve Ashley, who previously led Nomura’s wholesale division, and Jez Mohideen, who was Nomura’s Chief Digital Officer and Co-Head of Global Markets EMEA. Headquartered in Switzerland, with offices in the UAE and the UK

Jez Mohideen leads Laser Digital’s UAE entity with Cameron Dickie as Head of Distribution.

Arvind Ramamurthy, Chief of Market Development at ADGM said, “We are delighted that Laser Digital has been granted an ‘In Principal Approval’ for their virtual asset management services. Laser is developing investment services in virtual assets that are both dynamic and transparent, and their investment offerings align well with ADGM and the FSRA’s international best practices and progressive regulatory ecosystem. We welcome them to our robust and vibrant financial community.”

Jez Mohideen, CEO of Laser Digital added,“We are very grateful to have the opportunity to set up operations in ADGM; their comprehensive and clear regulatory framework is creating a global hub for digital assets that we are delighted to be joining.”

Prior to this Laser Digital was granted a full crypto license that will allow it to offer virtual asset broker dealer and investment management services in the UAE from VARA in Dubai. At the time Laser Digital announced that  it planned to launch over-the-counter trading services and digital-asset investment products for institutional investors in coming months.

According to VARA website, Laser Digital has been awarded the full VARA license, issued to VASPs which satisfies all of the requirements as specified under the Virtual Assets and Related Activities Regulations 2023. It allows a VASP to offer approved Virtual Asset services to retail customers as well as institutional customers and Qualified Investors.

Laser Digital, which is headquartered in Switzerland with officers in Dubai and London, said in a statement it had received the license from Dubai’s Virtual Asset Regulatory Authority, allowing it to offer crypto-related broker-dealer, management and investment services.

Dubai’s Virtual asset regulatory authority issues stablecoin regulations

Dubai’s Virtual asset regulatory authority issues stablecoin regulations

Dubai’s Virtual asset regulatory authority ( VARA) has updated its virtual asset rulebook and added new regulations with regards to what it calls Fiat referenced virtual asset ( FRVA) better know to most as virtual assets pegged to a stable value, or stablecoins.

As per VARA definition, “ Fiat-Referenced Virtual Asset (FRVA) means a type of Virtual Asset that purports to maintain a stable value in relation to the value of one or more fiat currencies but does not have legal tender status in any jurisdiction. An FRVA is neither issued nor guaranteed by any jurisdiction and fulfils its functions only by use and acceptance within the community of users of the FRVA.”

However VARA also notes an exception and states that any FRVA, i.e. stablecoin pegged to the value of the UAE currency, the AED will not be approved as it will remain under the sole and exclusive regulatory purview of the Central bank of the UAE.

In addition FRVAs exclude assets that  are representations of any equity claim; issued by central banks acting in their monetary authority capacity [e.g. central bank digital currencies [CBDCs]]; or  are tokenized bank deposits used only for interbank settlement purposes.

It also excludes reference Currency means, in relation to an FRVA, a VARA-approved fiat currence, the value of which an FRVA purports to maintain a stable reference to;and which is controlled by a central bank of any country[ies] or territory[ies] which are not subject to any sanctions in accordance with Federal AML-CFT Laws; as well as  the status of legal tender; and  which is required to be accepted within a given jurisdiction.

Issuers of FRVAs will have to ensure reserve assets, a pool of assets maintained in accordance  Rule III.B of these FRVA Rules and as approved by VARA. Reserve Assets are not Client Money or Client VAs, as defined in the Compliance and Risk Management Rulebook.

The issuance of an FRVA is a Category 1 VA issuance and as such is a virtual asset (VA) Activity. 

In addition VARA states that currencies of sanctioned countries or territories. VASPs may not have as a Reference Currency any currency issued by any country[ies] or territory[ies] which are subject to sanctions under Federal AML-CFT Laws.

VARA may, in its sole and absolute discretion, designate any VASP Licensed to issue an FRVA as a Significant FRVA Issuer at the time of issuing a Licence or anytime thereafter.

In designating a VASP as a Significant FRVA Issuer, VARA may consider all factors relevant to the VASP and/or the FRVA issued by the VASP, including but not limited to  the number of holders of the FRVA; the value of circulating and/or outstanding supply of the FRVA;  the value of the Reserve Assets maintained by the VASP; the number and value of transactions in the FRVA; whether the VASP and/or its affiliates carry out any other VA Activity[ies] and/or financial services in Dubai, or provide services similar to VA Activities and/or financial services in other jurisdictions; interconnectedness with licensed financial institutions and/or VASPs; and/or the business, structural and operational complexity of the VASP in relation to the FRVA issued by it.

UAE’s ADGM grants crypto custodian Changer an FSP license

UAE’s ADGM grants crypto custodian Changer an FSP license

UAE based changer.ae, a crypto custodian service provider has received  the Financial Services Permission (FSP) license by the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM).

With the FSP, Changer has become officially authorized to offer its services to individuals who are looking for a robust and reliable platform to hold their crypto currencies. Being uniquely positioned in the UAE, Changer focuses on protecting crypto based investors and informing the community about safety, risks, and crypto investments through its state-of-the-art custodian services.

Changer’s custody solution is an easy-to-use, all-in-one platform that offers customers simplicity at their fingertips while safeguarding their virtual assets. Individuals from all over the world can soon access the mobile application and use it to store their digital assets, with peace of mind that their investments are secure and always insured.

Changer’s enterprise-grade and robust infrastructure uses advanced encryption and multi-signature authorization to enhance the security of its wallets. Unlike most applications, Changer caters to investors looking for an independent provider of safe custody. By separating trading venue and storage, market participants are better able to ensure the protection of client capital.

Regulated by the world-class advanced regulatory framework of Abu Dhabi Global Market (ADGM), Changer offers clarity and transparency in its services. Since the crypto world is a very fast-paced one and can be overwhelming at times, Changer has been designed with our clients in mind, it is simple, straightforward, and user-friendly. The intuitive interface allows customers to easily manage their digital assets, make transactions, and monitor their account activity through one of the fastest and most efficiently designed platforms. Moreover, there is a dedicated team of experts that is available for support and to answer any questions our clients may have.

Nadeem Ladki, Senior Executive Officer of Changer, commented on the launch: “We would like to thank his excellency H.E Ahmed Jasim Al Zaabi, Chairman of ADGM, the Financial Services Regulatory Authority, and particularly the Authorization Team for granting us the FSP license. This license is an endorsement from one of the most reputable regulators in the world and marks Changer’s commitment to maintaining a transparent and secure relationship with ADGM, ensuring that all our clients’ virtual assets are safeguarded in the safest way possible”.

He added: “I would like to extend my heartfelt gratitude to the dedicated Changer team, our partners, and the regulators who have made the launch possible. Our combined hard work has made Changer come to life, soon to be offering individuals all over the world the possibility to protect their investments with cutting-edge security measures. With Changer’s services catering to a global audience, we are assisting in driving the UAE’s ambition to become a global center for the crypto industry and virtual asset community”.

Beyond the imminent launch of its custody solution, Changer plans to expand its services in the near future to offer its clients simplified fiat conversion and fiat escrow services thereby enriching its product portfolio.