Dubai Virtual Assets regulator licenses digital asset fund of 1 billion USD

Dubai Virtual Assets regulator licenses digital asset fund of 1 billion USD

VARA has made public all the entities that are currently licensed under its authority. The entities fall under various categories including crypto exchanges, DeFi custodians, DeFi asset managers, DeFi service providers, and DLT platforms.

 As per VARA website in terms of native crypto exchanges, 13 crypto asset exchanges hold licenses. They include both international and regional players such as Binance, BitOasis, ByBit, CoinMENA, CoinMetro, Crypto.com, FTX (fully regulated with MVP license), GCEX Huobi, Midchains, Rain and OKx.

In terms of DeFi custodians, VARA has registered Hex Trust, Komainu, Monstera and ZampFi Labs . Hex Trust as one example is a fully-licensed and insured provider of bank-grade custody for digital assets. Through their proprietary platform Hex Safe™, they deliver custody, DeFi, brokerage, and financing solutions for financial institutions, digital asset organizations, corporate and private clients.

While ZampFi, is founded by: Amit Jain who was previously the Managing Director at Sequoia Capital. ZampFi is a digital banking entity.

VARA is also offering regulated licenses for DeFi asset managers. Names on the roster include Brevan Howard, Fintonia, Galaxy Digital, Nine Blocks and Noia Capital.

Bravan Howard asset management firm on Dubai VARA’s list has recently pulled off the largest crypto hedge fund launch as per the Block media. The firm’s flagship digital assets focused vehicle raised more than $1 billion from institutional investors, according to four sources with knowledge of the matter.

Brevan Howard Digital Asset Multi-Strategy Fund lost a scant 4% to 5% from inception through the end of June 2022, according to the source, even as the one-two punch of the implosion of Terra stablecoin UST and the insolvency of crypto lenders, such as Celsius and Voyager, locked price action and liquidity into respective death spirals.  “Their returns, relative to the market, are unbelievable,” another source adds.

Their strategies, including quantitative trades and relative-value plays, are implemented by teams of portfolio managers structured in so-called “pods” that feature supporting analysts and engineers. The division, additionally, now has more than 20 external blockchain engineers working under full-time retainers.

The global-macro-focused Brevan runs about $23 billion overall across a wide range of asset classes.

Brevan Howard Digital Asset Multi-Strategy Fund remains open to external capital, pursuant to a minimum check of $5 million. Its limited partners include a number of the world’s largest and most sophisticated hedge fund investors, including entities that have historically exclusively backed traditional financiers.

As for Fintonia, its Group founder Adrian Chng stated, “Dubai is making significant strides towards establishing itself as a virtual assets hub and creating a conducive environment for the industry’s growth. The virtual asset licence marks an important milestone in our aspiration to have a presence in every region where there are inn

As for Fintonia, its Group founder Adrian Chng stated, “Dubai is making significant strides towards establishing itself as a virtual assets hub and creating a conducive environment for the industry’s growth. The virtual asset licence marks an important milestone in our aspiration to have a presence in every region where there are innovative Web3 and crypto companies, enabling us to connect and collaborate with members of the crypto native ecosystem and the traditional financial services industry.”

Recently added is Nine Blocks Capital Management which was launched by PwC’s former global crypto head Henri Arslanian. Nine Capital has launched a $75m crypto hedge fund focused on institutional investors with the aim of becoming the world’s leading institutional grade crypto asset management firm as per a statement from the fund on launch.

The new fund is backed by $75m from Hong Kong-based hedge fund Nine Masts Capital Management, with additional investments from other partners.

Noia Capital has also joined the roster and is a Luxembourg based actively managed alternative asset manager pursuing excellence in digital assets and blockchain technology investments. As per the website the company is registered with CSSF and FSMA.

In terms of DeFi service providers the list includes Amber Group, Equiti, ScallopX, and TPS Capital.

VARA has also offered licenses to DLT platforms that include names such as Calvin Cheng Web3.0 Holdings, Mcontent, Polygon, and Woonkly Labs.

Finally in terms of DeFi services VARA has the following registered entities, BRE Holdings, Eros Investments, Hike, and Prypto.

VARA has yet to license NFT marketplace entities, crypto mining entities, and security token platforms.

Blockchain.com has applied for a crypto license in Dubai UAE

Blockchain.com has applied for a crypto license in Dubai UAE

 UK based Blockchain.com  secured regulatory approval from Italy’s Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP) allowing it to provide virtual currency and wallet services to Italian residents and institutional investors under the OAM’s regulatory framework. At the sametime Blockchain.com announced that it has a license underway in the UAE, through Dubai’s VARA. 

As per Blockchain.com medium article, “Through engaging with OAM we’ve been encouraged by the thoughtful approach to protecting consumers and preventing money laundering. A key growth market, Italy represents a significant economy in Europe with a high crypto adoption rate relative to its peer countries in the EU. Additionally, this milestone strengthens our position to offer services across Europe ahead of the forthcoming Regulation on Markets in Crypto Assets (MiCAR), a landmark law expected to take effect in 2024/2025 that will create a single market for crypto through harmonized rules.”

Blockchain.com has additional registrations and licenses in process in the U.S., Germany, France, Spain, Dubai, Ireland and The Netherlands, providing an ever-expanding range of options for our retail and institutional clients.

Blockchain.com currently has 83 million wallets in more than 200 countries

With 83 million wallets in more than 200 countries, and have transacted more than $1.2 trillion in crypto to date.

Major exchanges Binance and U.S.-based Coinbase Global Inc , as well as Singapore-based Crypto.com and German investment platform Trade Republic, are among those to have already secured registration with the OAM.

Crypto platforms are looking to increase their bases in Europe before ground-breaking crypto rules agreed last month by the European Union come into force. Under the rules, expected to go live after 2024, crypto firms will need a licence and customer safeguards to issue and sell digital tokens in the bloc.

Japanese crypto custody provider receives provisional license from Dubai VARA

Japanese crypto custody provider receives provisional license from Dubai VARA

Komainu,  a regulated digital asset custody provider created by Japanese investment bank Nomura, digital asset manager CoinShares and digital asset security company Ledger. has been granted a provisional regulatory approval from Dubai’s Virtual Assets Regulatory Authority [VARA] to commence operational readiness. The provisional license will enable Komainu to be amongst the first fully regulated digital asset custody services to institutional clients in the region.

As per the press release, Komainu acts as key gatekeeper to institutions gaining exposure to the digital asset industry with the provision of secure and regulated digital asset custody services for blockchain and beyond. Over the years, Komainu has established itself as one of the leading digital asset custody providers for institutional clients, providing the same safeguards and protections investors are accustomed to in traditional finance. The Custodian’s industry-leading services have been designed by security, financial services and cryptocurrency experts and have been approved by external auditors.

Komainu has elected to base its regional HQ in Dubai and participate in this fast-evolving global virtual asset valley – in order to establish its leadership in the provision of institutional-grade digital asset services across the wider region.

H.E. Helal Saeed Almarri, Chairman of VARA, said, “Komainu’s entry into VARA’s regime is symbolic of the confidence and credibility that the Virtual Assets industry is gaining when backed by such strong endorsement from traditional finance leaders like Nomura. Such acceptance and active participation of tier 1 global institutional finance firms is not only an affirmation of Virtual Assets being integral to the future of finance, but also indicative of the potential that this industry can offer for economic empowerment. Dubai is pleased to welcome credible players like Komainu into VARA’s virtual assets ecosystem.”

The regulatory license once received, will establish Komainu as one of Dubai’s first regulated crypto custody providers, bringing a much-needed service to the proliferating regional ecosystem. The endorsement from the Dubai Government strengthens the Custodian’s fast-paced growth projections, in line with their core underpinning of doing so in a secure, robust and regulated manner. With the continued support of the Dubai regulators, Komainu is set to be a first mover in the MENA region.

Sebastian Widmann, Head of Strategy at Komainu, said, “Dubai and VARA are establishing a new hub for digital asset businesses and bringing like-minded companies into the country to help establish its growing crypto ecosystem and we look forward to contributing to these exciting developments. Komainu actively works with regulators, partners and our clients to make sure that our platform is held to the highest of standards and this latest endorsement by the Dubai Government is a further testament to that fact. By expanding into the MENA region, we are bringing a much-needed service to institutions operating within a regulated crypto marketplace. We are excited to bring Komainu Yield as well as the other new services set to launch in the near future to this marketplace and thereby serve a new demographic of institutions.”

OasisX MultiChain NFT marketplace the Oasis for NFTs in the MENA region

OasisX MultiChain NFT marketplace the Oasis for NFTs in the MENA region

The NFT (Non Fungible Token) marketplace trading volume is currently at around 4 billion USD per month despite the crypto bearish sentiments. Yet, the NFT segment is still far from saturated or mature, thus promising massive opportunities. Dubai-based OasisX, the first multi chain curated NFT Marketplace and Creator Studio is launching in a few weeks, paving the way for MENA based creators, collectors, and brands to take part in this new digital era. The platform has already on boarded more than 100 artists for its launch in addition to multiple regional brands for web3 activations.

Najib Khanafer, Ramzi Mneimneh, and Jimi Ibrahim decided to take on the challenge of building secure and accessible tools to navigate the NFT and web3 world, bringing meaningful impact to artists, creators, collectors and brands from the region. All three have extensive knowledge in crypto, blockchain and technology and have been early adopters of this disruptive digital trend According to the founders, Web3 is a more trustworthy foundation for achieving financial freedom; and NFTs represent a first, modest step towards solving one of the core problems of Web 2.0: digital applicability and ownership.

LaraontheBlock sat down with the Co-Founder of OasisX Najib Khanafer to learn more about the founders’ story and their unique and innovative platform, predicted to onboard artists, creators and collectors into the realm of NFTs.

What is OasisX?

As the name suggests, an oasis is a fertile ground in the middle of the desert, where water and plants are found. The X in OasisX is for Xploration, and marks the final destination for creators, collectors, and brands to position themselves on the web3 map. OasisX is a world where creativity is unlocked and where everyone can belong and discover their full potential.

NFTs have the right formula for success in MENA. Creative talent, culture, and the rich history of the region coupled with right tech infrastructure and regulatory environment will drive adoption. Khanafer states, “We are building the tech foundation and frontier to bridge the gap between MENA creators and web3, while providing collectors with a new way to support, own and trade in the upside of creativity.”

The broad NFT ecosystem continues to grow and expand, branching out into various new fields that have yet to be explored. At OasisX, users will be exposed to a wide range of categories, including 1/1 art, editions, PFPs, domain names, metaverse objects, music, and many more. To cater to that, OasisX supports the creation of NFTs using different multimedia types such as images, gifs, videos, audio, AR/VR, 3D objects and even documents.

Khanafer states: “We are still just scratching the surface of NFT applications. OasisX aims to support future use cases beyond digital art and collectibles, the obvious being other forms of creative output like utility NFTs and financial contracts (real-world assets). ”

With this in mind, OasisX intends to empower communities by supporting ownership through its inclusive NFT marketplace and Creator Studio, which will unlock new opportunities for artists, creators, brands, and collectors.

NFTs at scale done easy

The current NFT journey is complex, expensive and out of reach for artists, creators and creative teams. The Creator Studio, LaunchX, will securely enable its users to create, manage and mint NFTs at scale, without a single line of code, and at a highly reduced cost.

Khanafer explains, “We created a product that gives creators and brands the opportunity to engage with a tech trend. LaunchX is powered by an AI art generator, a smart contract creator and minting page editor, preserving true creative ownership.”

The user-friendly platform removes the barriers to entry for anyone who wants to tokenize their IP, while reducing the go-to-market and NFT deployment time from months to minutes. In short, LaunchX will enable NFT project creation in a few clicks.

Community empowering NFT Marketplace

As for the Marketplace, it allows users to list and shop NFTs on multiple chains including Ethereum, Polygon and Solana, while offering simple on boarding, non-crypto checkout options, and many other power tools such as bulk creation. Additionally, in its efforts to serve the MENA region, OasisX supports Arabic language on the platform.

Building the Oasis

After raising its pre-Seed round led by angel investors; the company is now looking to raise an additional 3 million USD in a new funding round. A majority of the funding will go into scaling the team, product and brand.

OasisX founders envision a future where the company will continue to exploit the potential of this technology, cementing it as a web3 powerhouse from the MENA region.

Matcha Capital takes on Pakistan with investment in BitBlaze crypto exchange

Matcha Capital takes on Pakistan with investment in BitBlaze crypto exchange

Matcha Capital, a Blockchain crypto investment fund based out of Europe, soon to be opening its offices in Dubai  UAE within DMCC ( Dubai Multi Commodities Centre) has made a significant investment in BitBlaze crypto exchange start-up, which will be launching its presence in Pakistan.

Omar Rahim, Managing Partner of Matcha Capital stated on LinkedIN, “It has been a long time in the making but I am delighted to make public our investment into BitBlaze which will be launching a cryptocurrency exchange in Pakistan, the 5th most populous nation on earth!”

As per Rahim’s post BitBlaze will be powered by Binance Cloud.

Rahim who was previously the Regional Director for Binance in MENA is one of the first to invest in BitBlaze’s pre seed round, founded by Abdul Alim and Imran Rahim. Rahim will also take over the role as chairman of BitBlaze noting his prior experience in Binance. Matcha Capital when launched in  early 2022 had stated that the fund would be capped at around 60 million USD.

Dr. Marwan Al Zarouni, a leading UAE blockchain entrepreneur and expert and Founder of Dubai Blockchain Centre was also among the pre seed investors in BitBlaze.  

Rahim added on LinkedIn, “We were delighted to support Abdul Alim & Imran Rahim at the pre-seed stage. They’ve been working tirelessly in the background for months and I wish them all the best with their upcoming seed round”

Omar Rahim spoke to LaraontheBlock about this investment given the current bearish market. He noted, “ This is our biggest investment to date, even though the markets are reeling right now and many crypto companies are scaling back. Yet, we feel carefully planned investments can drive real value in these markets. These investments are great for the investor but more importantly great for the Startups because they are focused on building and not on token prices.”

As for why Pakistan, Rahim explains, “Pakistan continues to be a sleeping giant. As the 5th most populous nation on earth, the market is huge and in terms of crypto adoption is holds the top three position worldwide. People are just waking up to the potential that this exciting market offers and we want to lead the way in building crypto infrastructure in Pakistan.”

Zimbabwe grants UAE Mulk International exclusive license to establish a blockchain and digital assets zone

Zimbabwe grants UAE Mulk International exclusive license to establish a blockchain and digital assets zone

UAE Mulk International has been granted an exclusive license to establish a blockchain and digital assets special economic zone in Zimbabwe. This comes in parallel with Mulk International pledge to develop a 500 million USD Cyber City Hi tech park near the capital of Zimbabwe, Harare.

The project Zim Cyber City, will facilitate special window clearance of blockchain and digital assets licenses and bank accounts, cutting-edge office spaces and high-end residential living for all individuals and entities operating and living in the community.

Owner of Mulk International, Dubai based billionaire Shaji Ul Mulk has pledged to fund the project. As per an interview with Zimbabwean media, Ul Mulk stated, “The project will include villas, cyber technology offices, shopping malls, and the tallest tower in Africa the Mulk Towers all constructed on 2.5 million square metres of land.”

The first phase of the project is expected to be complete in the next two years. Local businessman Tempter Tungwarara, who first brought the investor, said he was ecstatic that his efforts were finally coming to fruition.

The President of Zimbabwe, Emmerson Mnangagwa broke ground to launch the $500 million (Dh1.83 billion) Zim Cyber City.

Adnan Ul Mulk, Vice-Chairman of Mulk International, says, “We are keen to witness Zim Cyber City’s role in the successful integration of blockchain and crypto technology and premium, residential living. I am thankful to President Emmerson Mnangagwa for his staunch support in making Zim Cyber City a project of national importance.”

5000 Blockchain and metaverse companies to be in Dubai by 2027

5000 Blockchain and metaverse companies to be in Dubai by 2027

Dubai has officially launched its metaverse strategy which will bring on 5000 blockchain and metaverse companies to the city by 2027. His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council has launched the directives of the Dubai Metaverse strategy. 

As per his tweet, the Dubai Metaverse strategy will add 5 times more Blockchain and Metaverse companies to Dubai within the next five years. Knowing that today Dubai currently has 1000 Blockchain and metaverse entities, this means that by 2027 there should be 5000 Blockchain metaverse companies at least in Dubai UAE.

As Sheikh Hamdan stated, “It will also add 40,000 new jobs in the virtual world and bring in 4 billion USD to Dubai’s economy in the next 5 years.”

He notes, “Today we have launched our metaverse strategy which is the next economic and technological revolution that will play a role in every facet of our lives for the next two decades to come. We currently have 1000 companies in Dubai who are working in this domain and who currently add 500 million USD yearly to our national economy; we expect this will increase in the near future.”

Sheikh Hamdan added that the Dubai metaverse strategy will encourage innovation in the metaverse as well as government utilization of the metaverse while growing the talent base. He states, “Our aim from launching this comprehensive metaverse strategy early on is so that we can be one of the top 10 globally in this field. Dubai has and will continue to remain a pioneer because H.H. Mohammad bin Rashid Al Maktoum has proven over and over again the fruitfulness of his future vision and development.”

Back in March Dubai had announced it would be working on its metaverse strategy. 

Stratez Capital and Newtek to develop tokenized commodity trading on the Blockchain

Stratez Capital and Newtek to develop tokenized commodity trading on the Blockchain

Singaporean, Stratez Capital with offices in UAE, a boutique firm that focuses on assisting enterprises who are planning to elevate to the next phase of growth, has partnered with NewTek Holdings to develop tokenized commodity trading and real-estate projects on the Blockchain.

As per the press release, the Middle East has been identified by NewTek as a priority market, and the company is initially looking to focus on major real estate projects in Dubai.  “This is an exciting partnership, and in line with the investment and strategy objectives of the company, and we feel we can add huge value with our expertise and investments. NewTek brings real asset value and a clear vision in one of the fastest growing areas where real world assets combine with future Web3 and blockchain technology,” said Vik Pillai, Managing Partner at Singapore-based Stratez, announcing the agreement today.

Qurashi, CEO of London-based NewTek, said: “I’ve been very impressed by the depth and variety that Stratez brings to this new partnership, and am thrilled to be working with them. NewTek sets out to integrate the technology behind blockchain, NFTs and Web3 into the world of real estate and commodity trading. We have clear objectives, and I’m confident that Stratez can play a key role in turning our vision into reality.”

NewTek is a newly-formed company set up by Safi Qurashi, a serial entrepreneur and property developer. Over the last 25 years, Qurashi has founded several successful startups, including one of the first internet cafes in London in 1996 and a successful real estate company in Dubai. Other ventures included an armoured vehicle manufacturing company and a facility management firm in the UAE. Qurashi is the co-owner of Great Britain Island in Dubai’s World Islands project.

Qurashi added, “This partnership connects us with some very impressive Stratez partners, and I’m looking forward to the opportunity to work with world-renowned luxury brands. We’ll be announcing more details about the new venture in the coming weeks. But basically we’re working to allow the fractionalization of exclusivity within the two safest real life asset classes, real estate and commodities.”

As per his linkedIn, Newtek is working on tokenizing commodities making them accessing to all. Nire is on of the first ventures of Newtek and now live and trading.

UAE Blockchain enabled Data and Location-driven marketing company accepts crypto payments

UAE Blockchain enabled Data and Location-driven marketing company accepts crypto payments

UAE based data and location-driven marketing services company, MEmob which utilizes blockchain technology to offer advanced and effective advertising services, is now accepting crypto payments

As per their announcement, MEmob is assisting entrepreneurs, crypto investors, agencies, and brands as well as decentralized apps (DAPPs), data oracles, blockchain firms, and crypto exchanges by offering them the opportunity to pay in cryptocurrencies. Ihab El Yaman, CEO of MEmob stated, “By backing blockchain technology, embracing it, and accepting cryptocurrencies as payments, we are saying that we believe in this long-term.”

MEmob was one of the first tech companies in MENA to integrate blockchain technology into its operations; MEmob is presently well positioned to enhance digital marketing activations & performance and has strict control over data flow and GDPR adherence. MEmob is trusted by top brands to harness their data for growth and ROI maximization.

Ihab El Yaman added, “I believe, Blockchain, with all its implementations, mistakes, and corrections, will become available to every user with access. Blockchain technology and cryptocurrencies will surely evolve and power the new internet. As we’ve seen with the internet and its use cases over the last 14 years of innovation, this new technology – blockchain too will evolve, possibly over the next ten years. But I am positive that in the near future, hospitals, governments, and financial systems will embrace this technology and reap the benefits. Blockchain integration empowers businesses to unlock endless opportunities to create a global digital footprint. It’s time that we all take active steps towards near future implementation. Also, it goes without saying that the rise of blockchain will eventually bring about a revolution and change the world as we see it now. The best is indeed yet to come.

UAE Sectors left right and center accepting crypto payments

UAE Sectors left right and center accepting crypto payments

This week several entities each one in a different sector announced that they have become the first in their fields to accept crypto payments. Writing this piece I get a feeling that this will soon become common practice. For the past few months all one reads is more and more entities in UAE accepting crypto payments, whether they are schools, restaurants, property developers, Emirates airlines, retail shopping centers such as Majid Al Futtaim and many more. This time it is the turn for art galleries and charities. The majority of crypto enthusiasts and those passionate about Blockchain and crypto have been waiting for this for a long time; it signals the entrance of crypto into mainstream economy and once that happens there is no turning back. Bearish or bullish markets are of little significance because everyone is into crypto.

So Yesterday UAE based Galloire, art gallery announced that it is now accepting crypto payments such a Bitcoin, Ethereum and USDC for artwork sales globally. It is doing so through UAE based digital asset exchange, Midchains. Prior to this DAMAC properties announced it was accepting crypto payments through UAE based digital asset exchange Hayvn

Founder of Galloire Edward Gallagher said; “We have an absolute belief in the use of technology to bring art to as wide an audience as possible, so by using photorealistic VR and AR you’ve already seen us bring exhibitions from world-famous artists to tens of thousands more people than could have ever seen it in the gallery. We want more people to connect with contemporary art and also believe in an egalitarian approach to how people want to pay for that art: Why should we force a crypto-native person to pay in traditional (fiat) currency to acquire a beautiful painting, and vice-versa, why should a traditional collector looking to venture into NFTs have to pay in crypto-currency just to access some digital art they fall in love with?”

MidChains CEO Basil Al Askari said; “We are a company which prides itself on innovation and being able to provide safe and regulated ways to transact and invest with cryptocurrency, so working with Galloire to enable collectors to invest in art using their preferred cryptocurrency made perfect sense to us. Enabling people to pay securely for a physical asset with a digital asset, especially something as impactful as art, is a huge step forward in the UAE and we have been able to power that today, not in months or years’ time.”

Prior to this, UAE government backed nonprofit healthcare organization also became the first healthcare charity to accept cryptocurrency donations.  Al Jalila Foundation announced that it had been granted approval to receive charitable donations in cryptocurrencies. Again Al Jalila did this through a partnership with a leading cryptocurrency platform without naming it.  

Dr Abdulkareem Sultan Al Olama, CEO of Al Jalila Foundation, said: “As a philanthropic organization we rely on charitable donations and we are always seeking innovative ways to expand our donation channels for ease of convenience for donors from all around the world to support our programs. Therefore, as an emerging source of fundraising, providing the opportunity to the growing number of crypto users around the world to donate to Al Jalila Foundation to causes that interest them is a win-win for us as a foundation and the donor community. We are proud to be the first healthcare charity in the UAE to accept donations in cryptocurrencies bridging the gap between physical and digital currency.”

One thing remains to be seen, is when the UAE government announces that it accept crypto payments, then I will just call it a day and name UAE the crypto nation of 2022.