Exclusive Interview with CEO of Dubai’s Virtual asset regulator on the leading role VARA will play in global regulations

Exclusive Interview with CEO of Dubai’s Virtual asset regulator on the leading role VARA will play in global regulations

In March 2022 Dubai announced the launch of the world’s first virtual asset regulatory authority. The authority would be set up to grant blockchain and crypto licenses in Dubai UAE. VARA then announced the first presence of a virtual asset regulatory authority in the metaverse with its headquarters in the Sandbox. Soon afterwards VARA hired the first CEO to head a virtual asset regulator, Mr Henson Orser.

As per the recently published rulebooks the goal of VARA is to promote the Emirate and ultimately the UAE as a safe and progressive jurisdiction worthy of attracting meaningful Virtual Asset growth and innovation, in complement with all related UAE Government programs, and  position VARA and the UAE as globally trusted and respected in the realm of international law.

Henson Orser in an interview with LaraontheBlock clarifies how the first global comprehensive rule book for VASPs and issuance of virtual assets issued by VARA in February 2023 is achieving its aim of becoming a global leading regulatory authority and jurisdiction.

The importance of VARA for UAE’s D33 strategy

Orser believes that VARA not only aims to help develop the virtual asset regulations globally given the enormous demand for regulatory clarity worldwide but is also a part of the broader initiative under D33 (Dubai 33). He explains, “Dubai’s D33 Economic Plan has outlined our mission to establish the Emirate as the capital of the Future Economy. VARA was launched as the world’s only independent and specialist regulator for Virtual Assets to serve as the accelerator for a truly borderless Digital Economy. Our regulatory framework, which is first of its kind, has been structured to accelerate Dubai’s economic agenda and sustainable market growth.

VARA according to Orser assists in achieving the objectives of Dubai 33, a strategy that targets to double the size of Dubai’s economy to $8.7 trillion by 2033 making it top three global cities, because it encourages innovation and technology which will attract individuals and companies to the city.

He adds, “VARA follows Dubai’s footsteps in global innovation, fostering collaboration between public, private and government entities to enable economic independence and create long term value. Dubai’s virtual asset regulations set out a comprehensive framework built on principles of economic sustainability and cross-border financial security. Ultimately, by defining an equitable framework, we help mitigate risk and create space for newcomers and seasoned players alike to innovate responsibly.

Dubai VARA and its relation to UAE Securities and Commodities Authority

On January 14th 2023, the UAE Security and Commodity Authority released its federal regulations on crypto assets. It shed light on the interaction between the jurisdictions of VARA and SCA, by stating that no person may engage in Virtual Asset Activities in the UAE without obtaining a license from “the [SCA] or the Local Licensing Authorities such as VARA.

Questions have arisen as to the roles of both SCA and VARA. Is an SCA licensing enough to operate in Dubai and do entities regulated by VARA are overseen by SCA?

Orser when asked about the relationship with VARA noted that as we are dealing with a globally integrated, and borderless virtual economy. VARA is extremely fortunate to have such strong internal alignment and synchronization of local and federal efforts. He states, “These are absolute must-haves. Reflective of the UAE’s commitment to the new economy and confidence in the Metaverse and Web 3.0 ecosystems, VARA serves as the central authority for this specialized global industry mandated to provide VA oversight across the Emirate of Dubai [except DIFC], fully supported by relevant UAE Regulators and Legal Authorities to create a Global Operating Benchmark.”

He adds, “To this end, Cabinet Resolutions No. (111) and (112) of 2022 have been very effective in providing clarity on how the VA industry standards setting, rules enforcement and market protection responsibilities and authority assigned to VARA for the Emirate of Dubai, will be supported by SCA’s assurance of an agreed acceptable operating baseline across the wider UAE. Similarly, the UAE CB and SCA being the custodians responsible for National FATF compliance – will provide the guidance on Anti-Money Laundering [AML], Combating the Financing of Terrorism [CFT] and such other rules that warrant uncompromised consistency in execution.” 

The importance of compliance to FATF

In June 2019, the Financial Action Task Force (FATF) adopted an Interpretive Note to Recommendation 15 to further clarify how the FATF requirements should apply in relation to Virtual Assets and Virtual Asset Service Providers.

VARA has exhaustively taken the FATF AML/CFT guidelines to heart in its extensive 7 Rulebooks.

Orser explains, “Compliance to FATF and its AML/CFT guidelines are an absolute top tier global principle that we adhere to and aim to set the global standard for. There is no compromising on these guidelines within VARA and so people entering the VARA regime can expect a zero-tolerance for failure environment, here in Dubai..”

VARA Positive stance on crypto staking

Globally, 2023 has seen a lot of news related to cryptocurrency staking service and severe penalties and fines being imposed by regulators where such programs were being undertaken without relevant supervision. In the VARA Rulebooks, staking is a fully regulated activity as VARA feels strongly for the need for full investor disclosure, including marketing and solicitation activities being tailored for specifically qualified audiences.

Further elaborating on VARA’s perspective in permitting VA staking, Henson explained “We strongly believe that so far as a VASP exhibits the right level of responsibility and demonstrates robust transparency, investors must be able to effectively benefit from the offering that is built on permissioned DeFi protocols with proper regulatory guardrails and mandatory disclosures. When it comes to proof of stake versus proof of work tokens, we are also studying many of the interesting developments in protocols, with a strong focus on environmental sustainability.

VARA DeFi Regulatory Sandbox

While the term DeFi is not specifically referenced in the 7 Rulebooks from VARA, DeFi lies very much at the core of Dubai’s Future Economy considerations. 

 Orser explained that VARA’s Rulebooks have focused on facilitating borderless ‘value-exchange’ both in the traditional and new economy contexts, by leveraging a full spectrum of cross-cutting ‘activities’, which should not in any way be construed as TradFi specific. 

He states, “We are well aware that in this sector new technologies and products will be continually emerging, and constructively challenging traditional financial systems. It is exactly for this reason that VARA has been constructed as a technology agnostic and product-neutral framework that allows us to remain progressive and future-focused.  This means that our regime will provide for R&D sandboxes to test, learn and evolve prototypes across DeFis and DAOs today, to wider innovations across Metaverse and Web3.0. As we have maintained, the VARA Regulations will strike a measured balance between remaining agile so we benefit from future waves of technological innovations, yet being definitive in their ability to provide the required market certainty, FATF assurances, and cross-border security which are non-compromisable to us.”

Privacy coins no go at VARA

The rules on privacy coins are pretty simple says Orser. “Rather than going through specific examples of coins that will or will not be prohibited, we think it is important to emphasize how this issue is handled in VARA’s regulations. Our definition of an anonymity-enhanced cryptocurrency states that the prohibition will apply when a VASP has no means of establishing traceability or identifying ownership in relation to that cryptocurrency. If a VASP or a particular token or coin has the right technology or mechanisms to establish traceability or identify ownership, then Virtual Asset activity on that cryptocurrency may be conducted.” 

VARA is therefore focused on preventing financial crime and ensuring that the highest standards are met by VASPs in the areas of anti-money laundering and combating the financing of terrorism.

He concludes, “We hope the above provides you with a better understanding of VARA’s approach to this issue”.

NFTs within VARA regime

While no direct reference was made to the term NFTs [Non-Fungible Tokens] within VARA’s Rulebooks, Orser says that this again refers to the product neutrality of VARA’s rule sets, and what VARA will govern is the activity of issuance which will include NFTs.

He explains, “To the extent that an entity or someone is issuing an NFT, VARA will determine whether the NFT issuance warrants regulation or is substantive enough to be registered under regulatory supervision within VARA. After that the consequent distribution, buying and selling of that NFT are covered in our Exchange, Brokerage and Payment and Remittance Rulebooks.”

Virtual asset mining under VARA

While VARA did not offer a rule book for virtual asset mining activity, in its Rulebook on VASPs it mentions virtual asset mining stating that all VASPs which have investments in Virtual Asset mining or staking businesses or conduct or facilitate Virtual Asset mining or staking activities [including by way of selling equipment] shall make publicly available in a prominent place on their website, up-to-date information related to, the use of renewable and/or waste energy [e.g. hydroelectric energy, flared gas] by the VASP or its Group in the course of conducting Virtual Asset mining or staking activities as well as initiatives relating to decarbonization [e.g. purchase of carbon offsets] and emission reduction of Virtual Asset mining or staking activities.

Orser clarified, “As we have maintained the principle of VARA’s framework is its ‘live’ nature which particularly applies to topics like ESG that are globally evolving, and rapidly maturing around us. We are constantly getting feedback, and suggestions from VASPs as well as other regulators that have subject matter expertise. As such we will on a quarterly basis look to include relevant advancements in some of these globally acceptable principles in order to make the end result truly borderless and interoperable.”

The End of FTX

The FTX debacle set the crypto ecosystem years behind according to experts in the industry. With the launch of VARA and the publication of its rulebooks, will disasters such as FTX happen again?

Orser believes that 2023 will see greater regulation in this industry with a focus on consolidation, international coordination, financial crime compliance and consumer protection in light of the ongoing hyper-volatility surrounding the VA industry.  He noted that, “Dubai has found strong acknowledgment from international peers for its unwavering stance. Most importantly it has been heartening to see that the industry itself is keen on having regulatory oversight, supervisory support and facilitation of responsible actors, and to this end VARA remains committed to working with the industry and peer regulators to ensure that market stability and investor protection remain sacrosanct.”

Note: This is a copyrighted interview any replication of this interview has to be as carried out with exact quotes from CEO of VARA and sourced to LaraontheBlock 

UK Nexo crypto lender to hire a150 workforce in UAE as it expands its MENA presence

UK Nexo crypto lender to hire a150 workforce in UAE as it expands its MENA presence

In a recent article published by Arabian Gulf Business Insight, Nexo Co-Founder and MD Antoni Trenchev announced that the UK entity would be opening its offices in the UAE as it expands into the MENA region.

The MENA region will grow to account for 30 percent of its total global operations. NEXO as per the article which currently has 5 million users across 200 jurisdictions will set up under Dubai’s VARA regulations as well as DIFC.

As per comments made by Trenchev 150 people will be recruited. In the article he states, “We are seeking two lines of regulation,” Trenchev said. “One is for the crypto-related activities which will be at VARA, while DIFC will be for more traditional offerings associated with wealth management.

“There appears to be a political will to create a blockchain fintech financial hub in the region but more specifically Dubai and Abu Dhabi, which is always welcoming,” he said.

“In the Middle East the rules are being developed as we go, but there is the clear desire to have the business here, whereas in the US, when you deal with the various agencies and you assess their moves, you’re not really sure whether they want to have any crypto there apart from maybe Bitcoin,” he adds.

UAE nealthy NFT and crypto investment platform raises $1.3 million in pre seed round

UAE nealthy NFT and crypto investment platform raises $1.3 million in pre seed round

UAE based nealthy, a Web3 startup for investing in NFTs and cryptocurrency, has raised $1.3 million in pre-seed funding. Nealthy will use these funds to grow a core team, hire talent, and boost sales & development.

nealthy offers index tokens that enable investors to enter Web3 markets quickly and worry-free. Index tokens replicate the structure of classic exchange-traded funds (ETFs) by storing multiple virtual assets, diversifying the portfolio in case of unexpected market shifts. Moreover, index tokens like nealthy’s $NFTS retain real underlying value, with $NFTS being pegged 1:1 to blue-chip NFTs.

Co-founders Ludwig Schrödl (CEO), Zied Said (CTO), and Tim Pascual (CMO) established nealthy after observing a gap in the market for diversified index tokens. With backgrounds that unite finance, data science, and a deep knowledge of virtual assets, the co-founders’ expertise will keep investors at the forefront of a rapidly expanding market.

Although the founders’ origins lie in Germany and Tunisia, nealthy is incorporated in Dubai so that investors can benefit from a world-leading, tax-friendly regulatory environment. nealthy will also incorporate in the Metaverse Zone of Anguilla to emit the token in a regulated environment.

nealthy handles transactions via blockchain technology, the decentralized Web3 network behind most cryptocurrencies. The Ethereum Net blockchain enables nealthy to openly display proof of reserve, confirming the presence of blue-chip NFTs in nealthy’s digital vault.

“This is a space with enormous potential, and with any potential comes risk,” says Zied Said, CTO of nealthy. “To counteract those risks, we maintain security by storing all assets in cold wallets and smart contracts. Each cold wallet is public and maintains completely transparent holdings.”

As the market’s first dynamic blue-chip NFT token, nealthy’s $NFTS stores the market’s ten most valuable NFT collections. Currently these collections include the likes of CryptoPunks, Bored Ape Yacht Club, Mutant Ape Yacht Club, and Azuki, but because $NFTS is allocated by the market, any single NFT collection will be swapped should it drop from the top ten. No single collection will ever comprise over 25% of $NFTS’ value.

“As NFT trading markets evolve, potential investors are showing increased interest in diversification,” says Ludwig Schroedl, CEO of nealthy. “That’s even more true for first-time investors. A blue-chip index token, like $NFTS, provides superior investment opportunities at a reduced level of risk. And if we can do it with NFTs, we can do it with every asset on the blockchain.”

nealthy plans to release the $NFTS token in summer 2023.

UAE Telecom du utilizes blockchain for criminal records

UAE Telecom du utilizes blockchain for criminal records

UAE, du telecom which is participating at the World Police Summit, taking place from 7-9 March 2023 at Dubai World Trade Centre will be utilizing blockchain technology to enhance security for law enforcement.  du will showcase use cases such as decentralization of criminal records through blockchain technology which supports the UAE Blockchain Strategy 2021. Blockchain can replace criminal records with a network where documents are easily accessible and could not be tampered with, making them safe and secure.

At the event, du will present innovative digital solutions to enhance digital security for law enforcement with technology-driven tools and resources to aid in their day-to-day operations and enable them to carry out their tasks more efficiently and effectively.

Jasim Al Awadi, Chief ICT Officer (Acting) at du said: “From leveraging high-bandwidth low-latency 5G mobile networks to enhance security to utilizing blockchain technology to assist law enforcement, the World Police Summit presents a platform to explore new opportunities within the current security dynamics. du aims to drive the future of smart policing through innovative solutions and contribute to enhancing the quality of life for citizens to support the UAE’s success in being a leading global hub for smart economy initiatives.”

With years of experience, du has enhanced its in-house capabilities and developed a wide range of solutions for 5G, video analytics, mobile apps, blockchain, NFT and digital security. Visitors to the World Police Summit will have the opportunity to speak with du’s team of business experts and learn more about the following:

In addition du will showcase its solutions for digital certificates are critical for establishing digital trust and enabling users to take advantage of all that the digital world has to offer, including internet banking, websites, e-commerce, games, and social media. du’s approach to digital certificate management leverages modern digital certificate technology for increased security and efficiency.

UAE based Avanza Group exports its GCC Blockchain KYC banking experience to Pakistan

UAE based Avanza Group exports its GCC Blockchain KYC banking experience to Pakistan

In 2021 Avanza Innovations was piloting its KYC banking solution in Pakistan, two years later, Pakistan Banks’ Association (PBA), on behalf of all its member banks, signed the project contract for the development and execution of Pakistan’s first, blockchain based, national eKYC banking platform with the Avanza Group.

Avanza Group’s eKYC platform, ‘Consonance’, is being implemented for PBA. The platform will use blockchain technology through which banks will be able to standardize and exchange, with customers’ consent, their details via a decentralized and self-regulated network. This will be a support platform for Pakistan’s banking industry and all participating member banks will be able to perform assessments of their existing, as well as new customers, by utilizing information/ data available with any other bank on ‘Consonance’.

In 2021 Avanza was piloting the EKYC blockchain enabled platform with three big banks. In an interview Waqas Mirza, Founder and CEO of Avanza Innovations notes, “ “We are launching the EKYC Blockchain enabled platform initially for three of the biggest banks in Pakistan under the auspices of Pakistan Banks Association (PBA) and in-line with the guidance of State Bank of Pakistan. The eventual goal is to roll out this National EKYC platform to all banking and financial institutions in Pakistan.”

He had noted at the time that it is always recommended to start with a pilot and limited number of participating entities before scaling. 

In the latest announcement Mirza stated, “The Standardization and anomaly detection of Customer’ KYC details is just the first use case in this journey. In the future, the same platform can be enhanced to share Trade Finance related details, digital exchange and verification of banking documents, digital cheque clearing and many more. Avanza is very proud to implement the first building block of this multi-year journey that will greatly benefit the industry as well as end customers.”

Mentioning trade finance, digital cheque clearing is paramount because it is what put Avanza on the map in the UAE as well as Bahrain and other places.

Avanza had rolled out the National EKYC platform for BENEFIT in Bahrain back in 2021.  At the time Mirza had stated that GCC region has been our best partner for experimenting and implementing blockchain solutions and now we are replicating these solutions in neighboring countries.

Avanza Group had started its blockchain projects in the UAE and GCC region. Avanza was the technology partner for UAE Trade Connect Project. Blockchain UAE Trade Connect platform, the UAE’s first trade finance platform to combat fraud has 11 UAE banks on its platform and was 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.

With the advent of the Invoice Factoring law recently published by the Federal Government of the UAE, the UTC blockchain platform was a key enabler for banks to increase lending to SMEs and allow corporates to borrow against their trade receivables.

In December 2021, the UAE Blockchain AI enabled UAE Trade Connect trade finance had processed 10 Billion AED (2.7 billion USD) worth of invoices during the first eight months of its operation. Etisalat Digital launched UTC trade Finance platform in April of 2021 alongside seven banks within the UAE.

In early 2022, Abu Dhabi Commercial Bank joined UTC platform as did Dubai Islamic Bank. At that time UTC had in total nine banks on its roster. The founding banks included First Abu Dhabi Bank (FAB), RAKBANK, Emirates NBD, Commercial Bank of Dubai, National Bank of Fujairah, Mashreq Bank, ADIB – Abu Dhabi Islamic Bank, and Commercial Bank International.

The experience and reputation Avanza gained from both projects in Bahrain and UAE spurred the growth to other countries and continents.

Avanza Innovations, part of Avanza Group has also worked with multiple other UAE  governmental entities on Blockchain projects. Entities include DP World, Dubai Chamber of Commerce, Dubai Customs, RTA, Dubai Police and others.  

Waqas Mirza, Founder and CEO of Avanza Innovations in an interview in 2021 mentioned the work Avanza was doing in Saudi Arabia. He discussed working on a Blockchain Invoice verification with a well renowned company. He at the time stated, “We have won a project as one of the subcontractors working on an invoice verification solution built on Hyperledger. The client is utilizing this solution to ensure seamless procurement and payment procedures with its suppliers.”

In conclusion, Avanza Innovations a UAE blockchain solution provider has used UAE’s Blockchain strategy and commitment to innovation to grow well beyond its roots. This is a lesson to many blockchain and crypto entities that are setting up in UAE, the limits are endless.

Blockchain CargoX to take over former IBM Tradelens customers in MENA

Blockchain CargoX to take over former IBM Tradelens customers in MENA

CargoX, the provider of the fastest-growing electronic trade document platform, and CEBS Worldwide, a global integrator of business solutions and a former TradeLens integrator, launched a partnership to help corporations continue the digitalization of their bills of lading and trade document workflows even those in the MENA region. 

Businesses that started using TradeLens for their eB/L have been scrambling to migrate their electronic trade document processing to a new platform since TradeLens unexpectedly announced the end of its service in December 2022. 

While TradeLens was able to onboard global carriers — CMA CGM, MSC Mediterranean Shipping Co., Hapag-Lloyd, Ocean Network Express and Zim Integrated Shipping Services — it announced in November 2022 it would shutter due to a lack of a path toward profitability. TradeLens was also piloting projects in Oman and KSA. 

Saudi Customs, in partnership with the Ministry of Communications and Information Technology, the General Authority of Ports, and Maersk International Company, one of the founders of Tradelens had announced in 2019 the successful Blockchain pilot and the importance of blockchain technology in the shipping industry.

In addition Oman’s Port of Salalah  took the first step and is collaborating with Oman Customs and TradeLens built on IBM Hyperledger Fabric Platform for shipping and logistics industry. 

The new partnership provides existing customers of the discontinued TradeLens platform with a proven, reliable and powerful alternative for creating, transferring, and processing electronic bills of lading and trade documents. CEBS and CargoX will provide former TradeLens users with a frictionless transition of their workflows on the TradeLens platform by integrating the platform features through CEBS’s framework interfaces.

CEBS will start migrating current TradeLens customers to their Supply Chain Finance platform and the CargoX Blockchain Document Transfer (BDT) Platform for electronic trade document exchange. This is accomplished by using CEBS’s middleware cloud and on-premise platform to help organizations effortlessly leverage different public blockchains in their enterprise applications, saving time and money.

This way, companies can become future-proof and fully blockchain platform agnostic. Companies can keep their everyday workflows and introduce CargoX’s optimized, tightly integrated blockchain document transfer features into their existing processes. 

Satish Swaroop, CEO of CEBS Worldwide said: “We are committed to digitalizing the supply chain network for all trading partners and ensuring all transactions and documents exchanged are secure, traceable, and immutable. We have good partnerships and teams working with the public and private sector to shape the future and usher in a new era of global trade that is both frictionless and compliant.” 

Stefan Kukman, CEO of CargoX said: “We are incredibly proud to welcome CEBS as our new partner. They are a true innovator in the market, binding together diverse solutions and platforms to build customer value. The digitalization of trade documentation is in full swing worldwide, and companies need all the support and advice they can get to implement the optimum solutions into their everyday workflows. “We see demand rising daily, and more than 104,000 companies registered on our platform prove that the CargoX Platform is becoming a standard item in the toolboxes of modern supply chain participants.” 

CargoX in 2022 announced that Egypt had extended its agreement with Blockchain CargoX to include air cargo in its efforts to accelerate digital transformation of Egypt’s trade flows with the world. At the time the NAFEZA CargoX blockchain document transfer gateway had seamlessly and safely transferred more than 1,100,000 actual trade and finance documents for more than 75,000 customers.

The public-private partnership Misr Technology Services (MTS),80% owned by the Egyptian government, authorized CargoX as its blockchain document transfer gateway service provider for the country’s official NAFEZA single-window trade platform in March 2021. 

FLUUS crypto payment startup founded by MENA crypto enthusiasts raises $600,000

FLUUS crypto payment startup founded by MENA crypto enthusiasts raises $600,000

Crypto payment startup FLUUS ( which means money in Arabic) founded by MENA crypto enthusiasts has raised $600,000 ahead of its beta launch. FHS Capital, Base 64 and a number of angel investors participated in the raise.

FLUUS is creating a fiat-crypto on- and off-ramp that will give consumers access to web3 services including token swapping and staking. Its payment solution is designed to eliminate friction and simplify the process of entering and exiting the crypto economy.

Funds raised from the seed round will be used to further develop products and roll out FLUUS’ services, bringing crypto-fiat payments to a global audience.

“We are excited to have the support of FHS Capital and Encryptus.io, two highly reputable investment firms,” said Tey El-Rjula, co-founder and CEO of FLUUS. “Their experience and resources will be invaluable as we continue to grow and scale our business to provide financial technology solutions to onboard the next billion into web3.”

Dr. Fady and Mr. Hesham Hannah-Shmouni, Managing Partners at FHS Capital, stated,“Our investment in FLUUS fits perfectly with our vision for empowering exceptional founders and technologies in the web3 space, enabling customers and partners across key industry verticals to benefit from using blockchain technology.”

More than $1 million in cryptocurrency has already been successfully off-ramped in a private trial of FLUUS’ payment gateway. Funds were used to provide aid in Ukraine with the support of an international NGO. The next development phase will see the beta version of FLUUS’ payment solution opened to a broader market segment.

A number of major partnerships are already in place that will see FLUUS’ payment solution rolled out to millions of web users. These include matchmaking platform Dua.com and the GD10 Ventures ecosystem. The FLUUS payment widget can be easily embedded into third party websites and applications, providing crypto-fiat changing on demand.

FLUUS at present features two flagship products, FLUUS Pay: A regulated and compliant crypto ramping service delivered in collaboration with fintech operators and money transfer networks, and FLUUS Auth: An SDK that allows developers to easily integrate secure and user-friendly sign-up and web3 onboarding into their own applications.

FLUUS was founded in March 2022 with the goal of building solutions that will enhance global access to web3, particularly in emerging markets.  To the FLUUS founders, interoperability between financial systems is vital. This is especially important in emerging markets. With FLUUS, users can seamlessly on and off ramp digital currencies using their most convenient payment methods including cash and mobile money. 

As a pioneer in digital payment solutions, FLUUS Pay with its public beta launch expected to handle 62.82% of all crypto ramping in Lebanon by Q4 2023. In January 2023, 30% of all ramping in Lebanon was already done through FLUUS Pay, highlighting the platform’s success in providing a user-friendly, secure, and efficient way to buy and sell cryptocurrencies.

Saudi’s IR4LAB’s uses blockchain for charity food distribution in Ramadan

Saudi’s IR4LAB’s uses blockchain for charity food distribution in Ramadan

Saudi Arabian Blockchain and AI development startup IR4LAB,  is tracking food packages distributed to families during the holy month of Ramadan as part of charity donations. 

The Blockchain solution leverages DocCerts,  which has been utilized to issue a unique authenticity card for each package and assigned a unique ID and QR code to it.

Recipients can scan or enter the ID to obtain real-time details about the package delivered, including its source and contents. Once the package is verified, an entry is added to the transaction history, allowing confirmation of receipt in real-time and eliminating the need for time-consuming reporting back to the donors.

In addition, the system has an approval workflow feature, which is especially useful for transactions that involve multiple stakeholders. This is often the case with charity initiatives that involve various organizations, including government entities, private corporations, and non-profit organizations.

Charity initiatives are crucial for strengthening the social fabric, fostering local and international cooperation, and improving the lives of many communities worldwide. However, they are susceptible to fraud and misuse, which can erode donor trust. Therefore, a traceability system based on Blockchain technology can be instrumental in mitigating these risks and enhancing transparency and trust.

Majd Jamal Alafifi, Co-Founder and CEO of IR4LAB, stated, “This is an excellent example of utilizing technology such as Blockchain for social good, and we are delighted to have successfully completed this unique initiative in the region.”

Mohamed EL KANDRI, Co-Founder and CTO of IR4LAB, added, “We are proud to use our solutions to help our communities in a meaningful way, and we believe that new technologies can accomplish even more in line with the sustainable development goals, not only in the region but also worldwide.”

During Saudi’s leading tech event LEAP 2023, in February  IR4LAB, and SGS (Saudi Ground Services), jointly announced the implementation of DocCerts Blockchain management solution for all training related digital documents and ground service equipment licenses issued by SGS at 28 Saudi Arabian airports where SGS provides ground services.

Jordan on FATF grey list because of virtual assets risks

Jordan on FATF grey list because of virtual assets risks

On February 24th 2023 FAFT released its latest grey and black list. For those who are on the grey list it means that these jurisdictions are under increased monitoring and are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing.

As per the recent announcement by FATF, “When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. This list is often externally referred to as the “grey list”.”

Of the Arab countries on the grey list, was Jordan. It was on the list because of risks in virtual assets. As per FATF one of the reasons for it being on the list was because it needed to address strategic deficiencies including “completing and disseminating the money laundering and terrorist financing risk assessments of legal persons and virtual assets.”

It was interesting to see the term virtual assets in relation to Jordan because Jordan has not been on the list in terms of countries with high crypto ownership or transactions. Other countries such as Egypt, Morocco, and Lebanon are much more active in crypto. yet FATF chose to include the risks of virtual assets as one of the reasons it was one the grey list. 

According to Triple A crypto ownership report, the percentage of Jordanians who own crypto is just 1.5 percent equivalent to 170,000 people as of January 2023 an increase from 1.25 percent in 2022.

Concurrently, the IMF after its technical report on Jordan’s Central Bank feasibility for the launch of retail CBDC after a three month mission, recently released its report. IMF gave Jordan’s existing payment market a positive review calling it well integrated.

Nonetheless, The IMF stated that an rCBDC would enhance financial inclusion by providing services to residents without smartphones and could also improve the domestic payment system by making its infrastructure available to PSPs and lowering the cost of cross-border transfers.

The IMF however warned to avoid disintermediation in the Jordanian financial system, as it could contribute to instability in times of stress. The IMF found that an rCBDC could increase cybersecurity risks as an attractive target. “Sound legal underpinnings for an rCBDC should also be created,” the report said. 

In its report the IMF noted, “RCBDC may offer some benefits, but it does not necessarily address pain points. On the other hand, a cross-border rCBDC could add value, particularly if the authorities coordinate with other countries in the region.”

Jordan’s Central Bank had announced in February 2022 that it was researching a CBDC. Cointelegraph article noted that a central bank proposal to introduce crypto trading met with resistance in the parliament.

Whatever the case, Jordan being on FATF grey list because of virtual assets risks is another reminder of the need to regulate crypto assets.

WEMADE blockchain metaverse gaming developer to grow gaming industry in Saudi Arabia

WEMADE blockchain metaverse gaming developer to grow gaming industry in Saudi Arabia

WEMADE, the South Korean game developer shifting to blockchain NFTs, DeFi and metaverse has signed a Memorandum of Understanding (MOU) with KSA based Nine66, a Savvy Games Group (“Savvy”) company, to drive the development of the gaming industry in Saudi Arabia.

Savvy’s long-term objective is to drive the long-term growth and development of the games and e-sports sectors in Saudi Arabia. The group consists of five independent entities covering areas such as game development, e-sports, investments and more.

KSA based Nine66 is committed to building and investing in the thriving gaming ecosystem in Saudi Arabia. Nine66 is driving growth and success in the region’s gaming industry through a range of initiatives and partnerships, such as publishing, incubator and accelerator programs, training and events, as well as supporting virtual and real-life game development communities.

Saudi Arabia is a strong foothold in the Middle East’s gaming market, with over 80% of its 36 million population identifying as gamers. The partnership between WEMADE and Nine66 will support the local gaming ecosystem through training and educating Saudi game developers. 

Additionally, the partnership will explore various programs aimed at knowledge transfer, sponsorship of regional events, and expanding networks in the region to help grow the Saudi gaming industry and create new opportunities for developers and gamers alike.

WEMADE recently launched its new flagship game MIR M Global on January 31, which currently tops the ranks of video games in RPG category in multiple Middle Eastern countries including Saudi Arabia. 

Furthermore, in January 2023, WEMADE announced the establishment of a subsidiary in Abu Dhabi in the UAE, another gaming hub and plans to open another branch in MENA region and work with local projects and companies.

The announcement comes at a time when KSA will be hosting for the first time the Web3 Delight Summit in Riyadh KSA on March 6th 2023 at the Riyadh International Convention and Exhibition Center.

The event, which aims to engage, empower, and support a proactive, customised, collaborative, and secure advanced economy, will be attended by over 3,000 people in person and online from more than 40 countries.