Japanese Nomura Bank’s digital asset custodian Komainu receives MVP operational license from Dubai regulator

Japanese Nomura Bank’s digital asset custodian Komainu receives MVP operational license from Dubai regulator

Japanese Nomura Bank’s, Komainu, a regulated digital asset custody provider, has received an MVP (Minimum Viable Product) operational license from Dubai’s Virtual Asset Regulatory Authority (VARA). This is one step from receiving the full operational license. This also follows HexTrust another digital asset custodian who received the license prior. Under the license Komainu will be able to offer both custodial and staking services.

Komainu had received provisional regulatory approval from VARA in July 2022 allowing it to commence operational readiness even as the application goes through the warranted due diligence.

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. 

Komainu is the first hybrid custodian for institutional digital asset investors created by the Japanese investment bank Nomura, digital asset manager CoinShares and digital asset security company Ledger.

U.S. OFAC sanctions Dubai Fintech firm and its founder using crypto address

U.S. OFAC sanctions Dubai Fintech firm and its founder using crypto address

The U.S. the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 22 individuals and 104 entities operating in 20 countries for their role in facilitating Russian sanctions evasion, including John Desmond Hanafin, Founder of Dubai based Huriya Private, a fintech firm, who has an active Ethereum address included as an identifier on his SDN List entry.

Hanafin is the founder and CEO of Huriya Private FZE LLE, a Dubai-based financial services company also sanctioned today for its role in funneling Russian funds into the UAE. 

According to OFAC’s press release, Hanafin in his role at Huriya has been working since the outset of the Russia-Ukraine War to help Russian nationals protect their assets from sanctions. Much of this activity has involved helping Russian nationals move their money into UAE bank accounts and obtain fraudulent passports. 

As per Chainalysis blog, John Hanafin’s on-chain transactions may shed light on Huriya’s Russian sanctions evasion operations.

OFAC included a single Ethereum address as an identifier on Hanafin’s SDN list entry. That address is 0x38735f03b30FbC022DdD06ABED01F0Ca823C6a94. Since becoming active in January 2022, that address has received roughly $4.9 million worth of cryptocurrency, mostly in Tether (USDT).

According to Chainalysis article, across the 75 USDT transactions received by Hanafin, there were several in amounts with following ranges  $5,000 – $10,000, $15,000 – $25,0000, $100,000 – $150,000.

Chainalysis included some examples of transaction within those ranges on Chainalysis Reactor graph.

While Chainalysis states that they cannot be sure that any of the payments to Hanafin’s wallet reflect citizenship by investment purchasing, they do point out, “ it certainly appears possible given this is a service Huriya offers, and Hanafin’s work acquiring false passports for Russian nationals as described by OFAC.”

Chainalysis adds, “ As for the high-frequency payments to Hanafin’s wallet that came in smaller amounts, it’s possible that those were related to lower-cost services Huriya offers, such as establishment of UAE bank accounts or corporate structuring.”

Chainalysis explains that while crypto may still play a role in Russian sanctions evasion, the transparency of blockchain means that blockchain analysis combined with open source data can open up valuable avenues for investigation. 

Universal Digital and Canadian Aquanow receive several MVP licenses from Dubai’s virtual asset regulator

Universal Digital and Canadian Aquanow receive several MVP licenses from Dubai’s virtual asset regulator

Universal Digital AEDU and Canadian Aquanow have received MVP ( Minimum Viable Product) provisional license approvals for several virtual asset licenses from Dubai’s Virtual asset regulatory authority (VARA). Universal Digital (AEDU) has applied for advisory license, broker dealer services, virtual asset custodial license, crypto exchange license, crypto lending and borrowing license, as well as management and investment service license.

In addition Canadian headquartered, digital asset platform has also received MVP provisional approval for advisory license, broker dealer license, and management investment service license.

Aquanow is a privately funded, infrastructure and liquidity provider that enables institutional and enterprise use-cases for digital assets. The company currently has 200 institutional clients, serving customers in 30 plus countries with 70 asset pairings.

This is another representation of increased interest in the UAE as a center for virtual assets, blockchain and crypto. 

Circle appoints Vice President for Middle East and Africa while Blockchain IOTA eyes UAE

Circle appoints Vice President for Middle East and Africa while Blockchain IOTA eyes UAE

While Ripple CEO Brad Garlinghouse was telling CNBC that the confusing regulation in the U.S. is pushing more crypto companies to the leave the country, Circle appointed its Vice President for Middle East and Africa, Miriam Kiwan.

Kiwan on LinkedIn stated, “I’m happy to share that I’m starting a new position as Vice President, MEA at Circle!”

Earlier this month, the Circle team was present in Dubai UAE at a dinner hosted by Miriam Kiwan, the partner of Raiven Capital, now she is the VP for Middle East.

Jeremy Allaire, CEO of Circle Internet Financial, during an interview with Bloomberg, blamed the shrunken value of the company’s stablecoin, USD Coin, on regulatory challenges in the United States and concerns about its banking system.

Garlinghouse from Ripple, in his interview talked about the leadership qualities of Europe and UAE when it comes to the regulation of digital assets.

But this is not the only company that is eyeing the UAE, in a tweet , Blockchain IOTA Founder Dominik Schiener stated, “It was a pleasure to meet H.E. Abdulla Al Saleh and the team at the Ministry of Economy in UAE today. It’s impressive how they’re leading their digital transformation.”

He added, “We are looking forward to bring IOTA here and create value for the region and the world.”

In the comments it was noted, “Fingers crossed for an ongoing collaboration that propels IOTA to new heights!”

Bahrain welcomes digital asset banking services provider Whampoa

Bahrain welcomes digital asset banking services provider Whampoa

The Bahrain Economic Development Board announced that it has welcomed Singapore Based digital asset bank Whampoa Group to Bahrain. Whampoa will be setting up its new digital bank headquarters in Bahrain.

The digital bank, which offers integrated financial solutions to serve institutions, innovators, and sophisticated investors globally, including digital banking services and the trading, custody, and asset management of digital assets, will open its operations in Bahrain by the end of year.

In 2022, Whampoa Group had announced plans to raise $50 million for a crypto hedge fund and had announced plans to set up a venture capital fund to invest in digital assets.

“We are delighted that Whampoa Group intends to set up the headquarters of their new digital bank in Bahrain as they would benefit from Bahrain’s pro-innovation environment and forward-looking regulatory framework. The establishment of these types of institutions is vital to further strengthen the existing digital assets industry and this milestone opportunity directly aligns with Bahrain’s Economic Recovery Plan, which prioritizes digitization across the financial services sector,” Khalid Humaidan, EDB CEO, said.

“We were impressed by Bahrain’s solid reputation in the financial services sector, transparent regulatory framework, and ongoing pledge to collaborate and innovate. We are committed to providing secure and innovative digital financial solutions in line with global best practices and are confident that our digital bank will set a new benchmark for the industry. Whampoa is grateful for the support from the Bahrain EDB and the broader Team Bahrain ecosystem throughout the entire process.” Shawn Chan, Group Chief Executive Officer of Whampoa Group commented.

UAE Blockchain authentication platform Stitchain to authenticate luxury products for THE LIST

UAE Blockchain authentication platform Stitchain to authenticate luxury products for THE LIST

UAE Blockchain authentication platform Stitchain, has been chosen by Dubai online luxury commerce platform, THE LIST, to authenticate ownership for luxury fashion sector.

Headquartered in New York, and with a presence in Dubai and Lisbon, THE LIST identified the Dubai-based ID authentication platform due to its proprietary protocols to connect physical products and assets to the digital world.

As a social commerce platform for luxury fashion, THE LIST enables immediate access for consumers to a network of leading global brands and retailers, where they can discover and shop personalized content and access “hard-to-find” items.

The partnership supports THE LIST’s mission to ensure the authenticity of every product listed on the platform. By embedding NFC (Near Field Communication) tags linked to Stitchain’s blockchain-based authentication system, customers can also use the platform to verify the provenance and ownership of their purchases, fostering trust and confidence in the platform’s offerings.

Each asset registered on the platform is allocated a unique, encrypted digital ID stored on the blockchain. This digital ID is then linked to a physical NFC tag that can be embedded or attached to the asset. As a result, users can easily authenticate and verify ownership by tapping the NFC tag on their smartphone via mobile application.

Samir Al Andari Founder of Stitchain, said, “By partnering with THE LIST we are able to showcase our cutting-edge solution for asset authentication and management that well-align with THE LIST’s commitment to quality, authenticity, security and transparency. Not only does this showcase the technology pioneered from the MENA region, but it also aims to set a new standard in the luxury goods industry.”

Andreas Skorski Founder of THE LIST, added, “At THE LIST, we are committed to giving our customers the highest level of authenticity and transparency. We are thrilled to work with Stitchain and take advantage of their ground-breaking authentication platform to boost our customers’ trust in the legitimacy and ownership of the high-end goods we offer on our platform”

Dubai Civil Aviation Authority and the Dubai Integrated Economic Zones Authority to link data using Blockchain

Dubai Civil Aviation Authority and the Dubai Integrated Economic Zones Authority to link data using Blockchain

In a recent flurry of signing agreements between Dubai Civil Aviation Authority with Dubai Aviation City and Dubai Integrated Economic Zones Authority (DIEZA), an agreement to link data of both DIEZA and Dubai Civil Aviation Authority was signed.

According to the press release, these agreements aim to foster enhanced cooperation and integrated link using ‘Web Service’ technology for issuing commercial activity permits in the aviation sector, thereby enabling immediate approvals from DCAA for commercial licensing transactions in the Al Maktoum International Airport and Dubai Airport Freezone. It also strengthens institutional information and data management cooperation, facilitating systematic integration.

On this remarkable milestone, His Highness Sheikh Ahmed bin Saeed Al Maktoum said: “This MoU is a strategic milestone in reshaping Dubai’s aviation industry and consolidates the emirate’s position as a global leader in digital transformation in the aviation industry. Integrating cutting-edge technology and digital solutions into Dubai’s aviation operations is not just a business strategy but a fundamental dedication to customers, partners, and the city’s future. By creating an environment that encourages the synergy of technology and human ingenuity, Dubai strives to achieve unprecedented efficiency and customer satisfaction.”

As per the news, the partnership agreement between the Dubai Civil Aviation Authority and the Dubai Integrated Economic Zones Authority entails the integrated link of data and information through a fully-integrated and activated blockchain technology connection enhancing the speed and accuracy of service provision. 

Oman Crowd Funding platform to develop secondary token market after receiving license

Oman Crowd Funding platform to develop secondary token market after receiving license

Oman based Mamun to develop secondary token crowd funding market after receiving license from Oman Capital Market Authority

Oman based Mamun, has been awarded a full crowd funding license by Oman’s Capital Market Authority, with plans to offer a crowd funding token based secondary market utilizing its recent partnership with Fasset token exchange platform.

The recent license is also a pre-approval for a PSP (Payment Service Provider) license by the Central Bank of Oman. As a fintech infrastructure-as-a-service provider, Mamun offers a proprietary technology platform that empowers telecommunication companies, banks, and large startups with the tools and capabilities necessary to roll out fintech services and products, including popular solutions like Foodics.

Excitingly, Mamun has recently announced a strategic partnership with Fasset, a renowned innovator in the field. This collaboration aims to co-create advanced products that further enhance Mamun’s holistic approach to fintech services. By combining their respective strengths and expertise, Mamun and Fasset strive to drive innovation, accessibility, and convenience in the financial industry.

“We are thrilled to have been granted the full crowdfunding license by the Capital Market Authority and the pre-approval for the PSP license from the Central Bank of Oman,” said Mohammed Al Tamami, Co-Founder  and Chief Commercial Officer at Mamun. “These licenses are a testament to our commitment to delivering state-of-the-art fintech infrastructure and comprehensive solutions. We are excited to expand our offerings and partner with industry leaders like Fasset to shape the future of finance.”

The global Tokenization Market size to grow from USD 2.3 billion in 2021 to USD 5.6 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 19.0% during the forecast period, according to a new report by MarketsandMarkets published in May 2023. 

Singapore based crypto asset custodian applies for license in ADGM

Singapore based crypto asset custodian applies for license in ADGM

According to a recent news piece in Khaleej Times, Liminal, a crypto custodial wallet platform has applied for a license at Abu Dhabi Global Market (ADGM) in an effort to offer regulated service in the region.

Liminal which claims to have processed crypto transactions worth $5.6 billion on its platform, with over $550 million worth of assets under protection, believes that people will use digital assets either as part of investment or a part of underlying fundamental technology.

Mahin Gupta, Founder, Liminal stated to Khaleej Times, “Regulation will become uniform across the globe. UAE has taken a first mover advantage in the field of digital asset regulation, with much clarity. They have a clear idea about how they want to look at Metaverse, how they want to look at trading, how they want to look at custody and how they want to look at blockchain as a service and blockchain as a platform for other applications.”

Liminal in the past month has advertised for the position of Finance Officer based out of Abu Dhabi ADGM.  Prior to that Liminal partnered with Dubai based payment gateway platform Magik Labs. Through this partnership, Liminal would empower Magik Labs to create a series of transit payment wallets to receive payments from their users. These payments will then be converted to desired tokens or NFTs via connectivity to other decentralized exchange (DEX) aggregators, over the counter (OTC) desks or trading platforms. Liminal’s MPC hot wallets will enable transit wallet addresses and provide automation of transaction flows.

At the time, Manan Vora, senior vice president, strategy and operations at Liminal had noted, “Our partnership with Magik Labs is a part of our continued efforts to strengthen Liminal’s position in the Mena region as the first choice of businesses for digital wallet infrastructure services.”

According to Gupta there are about 400 digital asset businesses in the UAE, and this number will cross 1000 by the end of 2023.

Liminal is focused on Asia-Pacific and Mena regions, and is running on an accelerated growth trajectory by growing aggressively in client acquisition, especially in markets like South Korea, Hong Kong, Japan, Africa (Nigeria), Indonesia, India and Dubai.

UAE Trade Connect Blockchain Trade Finance platform keen to expand into KSA

UAE Trade Connect Blockchain Trade Finance platform keen to expand into KSA

UAE Trade Connect Blockchain enabled trade finance platform looks to offer its solution to Saudi banking sector. Zul Javaid, CEO of UAE Trade Connect expressed his interest in expanding the Blockchain enabled KYC Trade Connect platform to KSA.

This came as UAE Trade Connect participated at the Global Trade Review conference in Riyadh KSA in May of this year.

As per Javaid, “The Kingdom of Saudi Arabia is a robust banking market, and we are very keen to bring our unique blockchain and AI based engine into the country to help banks de risk their trade finance lending.”

Javaid met with several leading Saudi banks at the event. Also present at the event in KSA was First Abu Dhabi Bank and Emirates Bank who are members of Blockchain enable UAE Trade Connect platform.

In February 2023, UAE Trade Connect added its 11th bank to the platform, the United Arab Bank. Prior to that Abu Dhabi Islamic Bank (ADIB) became the 10th bank to join Blockchain trade finance platform.

UTC, the fintech blockchain platform of e& enterprise, is the UAE’s first commercialized solution to combat fraud in the trade finance space built on advanced technologies, namely blockchain and Artificial Intelligence (AI). UTC is a collaborative project of the banking industry and co-created with e& enterprise.

UAE Trade Connect is a cloud-native solution that detects suspicious transactions, prevents fraud and duplication, and supports a wide range of trade-related documents that is validated and inspected in real time.

At the time, Shirish Bhide, Chief Executive Officer at United Arab Bank, stated, “We wholeheartedly support UTC’s mission of driving digital transformation and reducing fraud risks. This strategic partnership aligns with UAB’s mission to accelerate growth through digitization and to build a secure and transparent trade finance ecosystem. UTC’s benefits will not only protect UAB’s customers and the wider banking system but will also boost global trade. It is a pivotal event in the digitization space, with the potential to make trade financing more accessible, affordable, and equitable.”