Blockchain DeFi Finance platform receives a license in Saudi Arabia

Blockchain DeFi Finance platform receives a license in Saudi Arabia

MRHB a halal, decentralized finance (DeFi) platform built for Ethical and Inclusive DeFi has expanded into the Saudi market after receiving a license from the Ministry of Investment.

MRHB plans to relocate its research and development team to Riyadh KSA.

According to the press release, “At $830bn Saudi Arabia has the largest Islamic Banking market globally and as such it was inevitable for MRHB.Network – the world’s most mature halal web3 ecosystem – to come onshore. By securing the license, MRHB.Network is now better able to partner with local, regulated institutions to drive its vision of a more inclusive, ethical, and halal approach to the world of decentralized finance and digital assets.”

The relocation of MRHB.Network’s R&D team to Riyadh is a strategic decision to tap into the vibrant and innovative fintech and venture capital ecosystem in the region. Riyadh’s dynamic, tech-forward environment offers the perfect backdrop for MRHB.Network to spearhead research and development efforts to bring the six trillion dollar Islamic economy into the digital assets era.

On LinkedIn Founder of MRHB Naquib Mohammed stated, “With great pleasure, I am excited to announce that MRHB.Network has received the local license from The Ministry of Investment, Saudi Arabia and has now expanded to the Kingdom. Our R&D team will soon relocate to Riyadh, where we will begin the next phase of our research and development. We are committed to providing empowering fintech solutions to the GCC, MENA region, and beyond.”

Prior to the move to KSA, MRHB Network partnered up with Shari’ah Review Bureau (“SRB”), a Bahrain-based Shari’ah advisory firm, to independently assess and review its new product EMPLIFAI (Earnings Amplified with Algorithms & AI) which aims to provide Sharia-compliant passive income.  

At the time Mohammed stated, “The MRHB ecosystem aims for a wide array of crypto-based DeFi solutions. After a successful launch of the Sahal Wallet app, a multichain self-custodial digital wallet, we are pleased to present our new product to the Muslim community – a liquidity harvester product, EMPLIFAI which incorporates a Sharia-compliant mechanism and structure for users to invest and generate passive income.”

Phoenix group purchases $567 million of crypto mining hardware

Phoenix group purchases $567 million of crypto mining hardware

UAE Phoenix Blockchain, crypto mining group has purchased a total of $567 million of Bitcoin mining Hardware. The group made a new Bitcoin mining hardware purchase of $187 million from Bitmain, just a few months after it purchased $380 million worth of crypto mining hardware from Whatsminer.

Prior to this Phoenix Group invested in Lyvely, a UAE-based platform poised to reshape how creators and consumers interact and monetize online acquiring 25% of the company.

The landmark purchase worth $187 million is for cutting-edge mining machines from industry giant Bitmain. This strategic acquisition comes just after its IPO on the Abu Dhabi Securities Exchange (ADX).

“This latest deal, following our successful IPO and partnerships, signals our relentless pursuit of excellence and solidifies our leadership in this dynamic space,” declared Bijan Alizadehfard, Co-Founder & Group CEO of Phoenix Group. “Partnering with titans like Bitmain and Whatsminer equips us with the best tech, fuels our growth, and redefines the future of efficient and sustainable mining.”

Phoenic Group has a  market cap of $3.95 billion as of January 4th, 2024, the Bitmain deal further amplifies Phoenix Group’s hashing power and market share.

But for Phoenix Group, it’s not just about numbers. It’s about building a better future. The company remains dedicated to green practices, integrating hydro cooling technology in collaboration with both Bitmain and Whatsminer. “Our environmental responsibility is core to our values,” emphasized Munaf Ali, Co-Founder & Group MD of Phoenix Group. “Partnerships like these, coupled with our commitment to hydro cooling, pave the way for a greener blockchain future.”

This comes as the USA and crypto enthusiasts around the world await announcements of the first Bitcoin ETFs.

Ministry of transportation in Oman pilots Blockchain solution

Ministry of transportation in Oman pilots Blockchain solution

The Ministry of Transport Communications and Information Technology in Oman will be piloting Blockchain Land transport eWay Bill on February 4th 2024.

The land transport eway bill is a blockchain enabled digital document used to authenticate and secure the process involved in land freight transportation. It includes crucial information such as quantities weights, origin, and destination of goods

As per the statement on X, the key objectives of the eWaybill include simplifying logistical operations and streamlining procedures for efficient and smooth tracking and documentation of shipments.

It will ensure service quality and enhance transportation operations; preserve and protect the interests of all parties involved, and elevate the overall quality of logistic services.

NAFITH a company that develops and operates technology-driven services that increase the productivity of trade processes and shared freight transportation infrastructure to benefit the public and advance commerce will be implementing the solution for Oman.

Nafith operates in Oman, Iraq and Saudi Arabia.

In 2023 Oman also announced that Oman’s telecom operator Omantel, and Indonesian Telkomsel signed up to GSMA’s ebusiness network accelerator program to trial next gen telco blockchain network for roaming. The new network would speed up roaming processes, support roaming agreement negotiations and expedite billing and settlement. The trials  went live in June 2023.

While Oman blockchain ID tech startup, Nashid was selected by Swiss Tech4trust accelerator to participate in their program out of Trust Valley of Lausanne, Switzerland.

IHC launches new holding company which will invest in crypto

IHC launches new holding company which will invest in crypto

UAE based International Holding Company (IHC), has approved the initiation of the transfer of 2PointZero, a next generation Holding Company comprising several diverse and dynamic companies, which will invest in several industries including crypto ecosystem.

The new Holding company will include a combination of entities holding over $27 billion in assets (transfer will be completed after obtaining all regulatory approvals).

One of the most relevant entities now under 2PointZero is Citadel Technologies.

Citadel is a leading player in the cryptocurrency mining industry and operates a state-of-the-art crypto mining facility in Abu Dhabi, UAE. The company specializes in Bitcoin extraction and is committed to sustainable and efficient mining practices. Citadel’s strategic location in the UAE allows it to leverage the region’s advanced infrastructure. In FY22, Citadel reported a revenue of AED100 million and an asset size of AED2.7 billion. IHC recently acquired a 10% stake in Phoenix Group, which manages the ‘Citadel Project’. Citadel’s facility is recognized as the Middle East’s largest crypto-mining facility.

IHC Chairman, Tahnoon bin Zayed Al Nahyan said: “Today, we are proud to announce the formation of 2PointZero, a next generation holding company that stands at the forefront of pioneering advancements across multiple sectors. Embracing the future with open arms, 2PointZero is committed to having a transformative impact globally. Our dedication to Technology and Artificial Intelligence (AI) is evident in our commitment to developing solutions that redefine industries such as Financial Services, Investment Banking, and Resource Management. Our vision transcends boundaries, and our mission is to build sustainable ecosystems that empower communities, cultivate technological excellence, and ensure financial resilience.”

2PointZero will invest across  verticals including Private Equity and Alternative Investments, Venture Capital Operations, Credit/Asset Management, Financial Services (including Micro Financing and Insurance) Investment Banking, Securities Brokerage and Research, Artificial Intelligence (AI) and Technology, Mineral and Resource Management, Digital and Cryptocurrency Ecosystems and Mobility.

“2PointZero’s collective strength lies in its diversity, shared vision, and unwavering commitment to progress. Its thriving ecosystem of industry leaders is interconnected, each contributing unique value and drawing strength from their collective purpose,” said Syed Basar Shueb, IHC’s Chief Executive Officer. “By harnessing our expertise and acumen across these industry verticals and operating at an unprecedented scale, 2PointZero is poised to create a transformative impact on the world.”

2PointZero Holding will also include the following entities, Chimera Investments, Lunate, Beltone, International Resources Holding (IRH), and Sagasse Investments.  

A week prior to this announcement, UAE IHC Holding, which bought 10 percent of UAE Phoenix Group, a leading Bitcoin mining entity spurred its growth in Blockchain, AI and IoT in a joint venture with Indian Adani Group.

Saudi STC backs Blockchain AlephZero hackathon

Saudi STC backs Blockchain AlephZero hackathon

AlephZero, a layer 1 blockchain that allows the deployment of Web3 applications quickly, securely and at low cost has collaborated with Saudi Telecom Company, STC global Venture capitalist as well as T-Mobile, for its upcoming Hackathon called CTRL+Hack+ZK. The Hackathon will start on January 10th 2024 until January 31st 2024.

The winners of the Hackathon will receive up to $75k bounties and up to $500k EFP funding.

CTRL + HACK + ZK is the premier hacking event for Aleph Zero, the highly scalable blockchain platform with blazing speed and state-of-the-art privacy engine. The Hackathon will include 3-week journey of workshops, educational programming, and hands-on mentorship with the core dev team and ecosystem partners.

There are various tracks one of them is the Telco track which will challenge participants to redefine the future of telecommunications using Aleph Zero’s cutting-edge features by optimizing infrastructure or even creating new services.

Another track is the DiD track which explores identity-related solutions such as AZERO.ID, leveraging Aleph Zero’s native privacy stack to enable secure and decentralized identity management. Also included in the Hackathon is the  Tooling track which focuses on developing applications, node providers, libraries, and tools that enhance the developer experience and ecosystem around Aleph Zero, and finally the gaming track for building gaming solutions such as in-game items as NFTs smart contract templates for payouts and collectibles, or indexers for gaming data, the possibilities are endless. 

The Final track is DeFi where developers are encouraged to leverage its robust infrastructure and create unique financial solutions that help expand the ecosystem’s functionality.

Saudi Arabia has shown interest in developing CBDC (Central Bank Digital Currencies) as well as utilization of blockchain for tokenization projects. The collaboration of Saudi’s telecom conglomerate STC is another reflection of the Kingdom’s interest in Blockchain and its solutions.

The Saudi Islamic Development Bank Institute (IsDBI) is working to patent a Blockchain system for smart stabilization for CBDCs and digital assets after receiving a positive evaluation for its Blockchain smart stabilization system patent

Oman grows its crypto mining business with new installations

Oman grows its crypto mining business with new installations

Oman continues to grow its crypto mining business amidst a crypto bull market and possible Bitcoin ETF approvals in early January across the United States. Oman based Green Data City and Italy based Alps Blockchain, through its subsidiary Alps MiddleEast SPC, have agreed to develop a blockchain data center in Oman. The crypto mining farm will be installed in the Green Data City’s hub with a first phase of 6.5MW.

Alps Blockchain will start to deploy the containerized units in January 2024, and use the latest S21 machines released by Bitmain. Alps Blockchain has long been in partnership with Bitmain, the largest manufacturer of mining equipment in the global market.

The new S21 mining ASIC reaches an efficiency rating of 16 to 17 joules per terahash (J/TH), an unprecedented performance in the market. This performance reduces the energy needed to mine and to secure the Bitcoin network.

The location of the Blockchain Bitcoin mining datacenter is energy efficient given it is located in Southern Oman where the summer temperature stays below 29 degrees celsius, naturally decreasing the cooling requirements compared to the rest of the region. In addition, the presence of cold deep ocean water will bring natural cooling in the next phases of the development and further reduce the energy needed to operate the facility to a minimum.

In addition to the geographical advantages of the location, the partners have chosen Oman because of the long-term security provided by the Green Data City mining license, the stability of the Oman Government energy policies, and the large renewable energy development plans in the Country.

This announcement follows a previous agreement in October 2023 between China’s Bitcoin crypto mining and Blockchain hardware manufacturer, Canaan and Oman’s Green Data city to pilot phase of a new crypto mining operation in Oman. The new site would also be installed in the facility of Green Data City, and under the agreement, Canaan has the option to expand the total capacity to up to 100MW.

As part of the Oman’s strategy to build  crypto mining datacentres in Oman, the first phase of Asyad Group crypto mining center was launched in August 2023 in the Free zone in Salalah.

Built and managed by Exahertz, a subsidiary of Afaq Advance Technologies firm, the first phase was inaugurated during a ceremony attended by top Omani governmental officials. The ceremony was held under the auspices of Eng. Said Hamoud Al Ma’awali, Minister of Transport, Communications and Information Technology. It was attended by HH Sayyid Marwan Turki Al Said, Governor of Dhofar.

In the same month, Oman’s Green Data City and Abu Dhabi’s Phoenix Group signed an agreement to develop a 150MW crypto-mining farm in Oman. The new farm will be set up in Green Data City was noted that it will be operational by Q2 2024, becoming one of the largest crypto-mining data centers in the region.

The first Bitcoin was mined in Oman back in December 2022.

SBI Holdings launches its blockchain JV with UAE Tradefinex

SBI Holdings launches its blockchain JV with UAE Tradefinex

Japanese SBI Holdings continues to forge stronger partnerships in the MENA region with the announcement of the launch of its joint venture SBI XDC Network APAC with UAE based TradeFinex.

TradeFinex is the promoter of XDC Network, an enterprise-focused blockchain for the purpose of enhancing efficiency in trade finance. Prior to this in September 2023, the two entities had announced that they would be creating the joint venture.

The purpose of the joint venture is to develop the XDC Network which is a community-driven platform established in 2017 specifically designed for trade finance and payments. It provides a smart contract system that facilitates global trade operations through the tokenization of real-world assets (RWAs) like bonds, tokenization of trade assets, and digitization of trade documents, on high-speed, highly secure, and low-cost blockchain.

Up to now, the SBI Group has been providing various services related to the XDC Network, including becoming the Japan’s first exchange to start handling XDC tokens, through a partnership agreement with SBI VC Trade Co. Ltd. (Head office: Minato-ku, Tokyo; President: Tomohiko Kondo), a company providing crypto asset exchange services within the SBI Group.

Moving forward, the SBI Group will not only focus on services related to the XDC token, but also strive to expand the use cases of the XDC Network’s blockchain technology in global economic activities,  particularly in the fields of trade finance and cross-border payments.

According to the press release, “As the first project after the establishment of the joint venture, we have started a proof-of concept (PoC) experiment that connects XDC Network and the Corda platform provided by SBI R3 Japan Co., Ltd and Corda Bridge provided by US based IMPEL GLOBAL. In this experiment, FIAT payments generated by business-to-business transactions will be conducted in XDC via Corda and Corda Bridge. By utilizing a hybrid blockchain with both private and public characteristics, it is possible to provide a one-stop service that settles both private, such as information of transactions, and public, such as the transfer of value, at once. As a result, this offers an efficient and smooth payment method for cross-border transactions including international trade, compared to conventional fiat currency transactions.”

SBI Holdings over the past months has been forging a variety of partnerships across the region. It signed an MOU with Saudi based Aramco, for digital assets research. SBI Holdings also announced a partnership with Standard Chartered to launch a $100 million Fund in the UAE to also establish a digital asset joint venture.

Hayvn to onboard new CEO with new direction

Hayvn to onboard new CEO with new direction

After the confusion and speculations surrounding the situation of UAE based Hayvn a digital asset focused financial institution, providing trading, asset Management, custody, and payments, Ahmed Ismail, Board Member & Co-Founder clarified a few facts to set the record straight and bring hope that the future is bright for Hayvn, and for the digital asset scene.

First and foremost Ismail firmly and unequivocally stated that client funds are totally safe and have not been touched and as such Hayvn continues to serve its clients with the utmost professionalism and care. He explained to LaraontheBlock, “Clients funds are safe globally. All our client’s funds are safe wherever they reside.”

Secondly the company under the intern leadership of Tim Grant ,CEO, Deus X Capital, Stuart Connolly CIO, Deus X Capital & HAYVN Board member and Ismael himself, are currently cleaning up house, setting their strategies for the company and looking to hire a CEO to replace Christopher Flinos.

Ismael stated, “We are firmly committed to Hayvn and to its success. Sometimes things don’t go as planned, yet despite this Hayvn is doing well. Its revenues were up in the past month and we are looking forward to hiring a new CEO to replace Flinos.”

In terms of the technical and technology issues in Hayvn, Ismael reaffirms that technically all things are running smoothly. He admits that there were glitches when they were migrating to the new platform, yet clients were made aware that this might happen and all things were handled and dealt with according to the highest modes of professionalism.

In terms of its regulatory status, Ismael reaffirms that Hayvn continues to be a globally regulated business through their entities in Australia, Cayman Islands and Lithuania.

In the final analysis while Hayvn has gone through a tumultuous experience, that doesn’t make it a failure yet. Companies throughout history have gone through ups and downs but what makes them survivors are the team of passionate dedicated individuals behind them.

If Binance, whose reputation and growth stemmed from one person, its founder and CEO CZ, and who had this year to face the SEC (Securities and Exchange Committee) and come out still alive and kicking, there is hope for digital asset, crypto companies everywhere.

2024 will be a pivotal year for Hayvn and its team; they will either come out stronger than before having learned from past mistakes and experiences, or they will fall into oblivion. Those following Hayvn closely for such a long time, can only wish them the former outcome.

Saudi University survey shows positive correlation between Bitcoin and Ecommerce

Saudi University survey shows positive correlation between Bitcoin and Ecommerce

Researchers at King Saud University Saudi Arabia have released a research on the relationship between Bitcoin and e-commerce in Saudi Arabia with results showing rapid growth in ecommerce, some knowledge of Bitcoin, and a positive correlation between Bitcoin and e-commerce in the Kingdom

Researchers Dr. Layla Hajr, Suzan Katamoura, and Abdulrahman Mirza, developed a hypothesis to investigate and test the impact of Bitcoin on Ecommerce use in Saudi Arabia using a survey.

The survey analyzed factors such as Bitcoin awareness, usage among Saudi Arabian consumers. Responses were collected from individuals and employees of various companies working in different occupations in Saudi Arabia. In addition, statistical tools SPSS and SmartPLS were used to test the study’s hypotheses.

As per the survey results, there has been a rapid growth in e-commerce transactions and some knowledge of Bitcoin. Most importantly as per the researchers the survey showed a positive correlation between digital currencies ( Bitcoin) and e-commerce in Saudi Arabia.

The authors noted “The study also opens the way for future investigations into topics including Saudi Arabia’s regulations for Bitcoin, consumer attitudes toward Bitcoin, and the potential of blockchain technology for enhancing the nation’s e-commerce processes.”

Saudi Arabia is among the world’s largest e-commerce markets; the statistics in this sector reported that the volume of e-commerce transactions approached $5.7 billion. Also, Saudi e-commerce contributed to the GDP with a return of $10,482 billion in 2020 (Chamber, 2019). As a result of this swift growth in both technologies’ inventions and e-commerce transactions, new electronic methods were developed, for example, STC Pay, and others.

The King Saud University authors expected that the usage of Bitcoin might increase e-commerce transactions. Using an anonymous online survey to test their hypothesis the survey targeted different  community sectors, including various professionals (governmental, semi-governmental, private companies, private businesses, and students) in Riyadh and Jeddah cities.

124 respondents from the cities of Riyadh and Jeddah answered 14 questions.  Responses were collected from participants who work in different occupations, including governmental entities, Semi-governmental Authorities, Private Sector Companies, Private Business individuals, and students. Of the questionnaires answered, 56.5% were female. Additionally, 42.7% of the respondents were between 31 and 40; the rest were distributed between different age categories. The least (11.3%) of the participants held Diploma, and the remaining had a degree of Bachelor and above.

The survey while just a beggining is interesting especially as KSA is working on its CBDC project.

Hayvn ousted CEO is incognito with speculations about possible embezzlement

Hayvn ousted CEO is incognito with speculations about possible embezzlement

UAE based HAYVN which is a digital asset focused financial institution, providing trading, asset Management, custody, and payments previously regulated and active in Abu Dhabi, has fallen under a great wall of scrutiny and a black cloud both with regards of the activities of its previous CEO as well its current status as a regulated entity in the UAE.

In less than a week, Hayvn not only announced the so called resignation of its CEO Christopher Flinos and the request to make its status inactive in Abu Dhabi ADGM ( Abu Dhabi Global Market), but it also insinuated that the CEO had carried out a huge misconduct. In an email statement made by the PR agency of Hayvn, Fully Vested, to UNLOCK Blockchain, the agency noted, “The CEO stepped down from the management of the business, following a request from the Board of Directors due to the CEO’s conduct.”

Sources close to LaraontheBlock have noted that there has been speculation moving around with regards to possible embezzlement. This is further reconfirmed by the fact that Christopher Flinos is nowhere to be found. His phone is off, he does not respond to LinkedIn or other messages, and he himself has not made any statement to clear his name or explain his actions and that of the board of Hayvn.

LaraontheBlock reached out to the FSRA (Financial Services and Regulatory Authority) at ADGM with two questions. The first question, as a regulatory authority what actions have or will be taken towards Hayvn given the current cloud of speculation around it and the activities of its prior CEO?

The second question, can ADGM confirm that institutional clients in the UAE have not been effected financially or otherwise from the actions taken by the prior CEO and Hayvn as a crypto custodian and if effected will there be restitution?

The response which came from FSRA attributed to Mr. Emmanuel Givanakis. CEO of the Financial Services Regulatory Authority at ADGM stated, “As the financial regulator of ADGM, the Financial Services Regulatory Authority (FSRA) is bound by the highest levels of confidentiality and therefore is not positioned to discuss individual firms. The FSRA is committed to supervising all regulated entities so they maintain high standards to address risks related to their activities. ADGM stands as a transparent jurisdiction and has relevant public information on registered and licensed entities by its independent regulatory authorities in ADGM available on the public register.”

As per its license, AC Limited (Hayvn) is not permitted to deal with Retail Clients and is restricted to USD 1 million in total assets (Fiat and Accepted Virtual Assets) for a maximum of 100 clients.

When the same questions were posed to Ahmed W Ismail Co-Founder, Board Member & Operating Committee Member of HAYVN, he replied with this statement, “I can confirm that there has been a change of management at HAYVN. The CEO stepped down from the management of the business, following a request from the Board of Directors. Client funds are safe and there will be no disruption to the service of any clients. We continue to be a globally regulated business through our entities in Australia, Cayman and Lithuania.”

Hayvn was granted a license in ADGM in December 2021, allowing it to offer deals for investments, and virtual asset custody. In October 2023 Hayvn announced that had processed over 22 000 cryptocurrency transactions to date in 2023.

While back in August 2023 Swedish and UAE based Gayo aviation, a luxury travel company that offers aircraft management, consulting services, aircraft purchase and sales and flight deck services announced they were now offering crypto payments utilizing UAE HAYVN Pay.

In May Hayvn also announced that it had recorded returns of 19 percent increase on its crypto index fund since its launch in January 2023. The index fund  included the top 20 digital assets by market capitalization with a maximum weighting of 10% for any asset to increase diversification. It is a broad based index strategy with monthly rebalancing.

In short Hayvn was busy partnering and launching products.  It partnered with WooCommernce to offer a plug-in allowing merchants to create an additional revenue stream by accepting cryptocurrency payments from customers globally. It also partnered with crypto hardware manufacturer, Ledger to provide safe and robust off-ramping rails to users of Ledger’s Ledger Live service, as well as strategic partnership with Akurateco, a cutting-edge white-label payment software vendor operating worldwide to broaden crypto payments, and finally the most recent partnership with Malta based Apcopay, a Single Layer – Payments Orchestration Platform which they noted was crucial to HAYVN Pay’s global expansion strategy, providing an alternative payment avenue for businesses.

This flurry of activity while to many looks like reflections of growth and expansion could also have been a cover up for activities that led to the current situation Hayvn is in today.

Could the rushed technology upgrade implemented just before Flinos’s resignation which created widespread disruptions for Hayvn Pay Clients been part and one of the issues realted to the misconduct of the CEO?

These questions and many more should become clearer as the Abu Dhabi Global Market regulator investigates, and as Hayvn’s new leadership takes form.