Capex.com receives in principle approval for crypto license in UAE

Capex.com receives in principle approval for crypto license in UAE

Capex.com, which already holds a brokerage license in Abu Dhabi’s ADGM FSRA has now been granted an in principle approval for a cryptocurrency license from Abu Dhabi Global Markets.

CAPAX.com’s Founder and CEO, Octavian Pătrașcu, revealed that the new license will strengthen the brokerage platform’s cryptocurrency offerings in the lucrative Middle East and the North Africa (MENA) region. He stated on LinkedIN, “We are happy that we can start this new vertical under Capex.com and become closer to our main goal of offering a powerhouse of trading for our users, under one roof.”

Crypto approval came in addition to the broker’s existing license from the ADGM Financial Services Regulatory Authority (FSRA), gained in 2020, with which it offers traditional trading instruments.

Capex platform’s offerings are primarily trading services with forex and contracts for differences (CFDs) instruments of other popular asset classes. The platform quickly added crypto products as well, with the rising popularity of the asset class. It even expanded its cryptocurrency portfolio over the years, adding more assets.

The brokerage brand also strengthened its presence in the MENA region with several prominent hirings. Earlier this year, it added Fadi Reyad as a Market Analyst specific for the MENA region and Abdelhadi Laabi as MENA Chief Marketing Officer.

UAE crypto mining hardware retailer to invest $300 million in global expansions

UAE crypto mining hardware retailer to invest $300 million in global expansions

Amidst what some might consider as bearish markets especially for the crypto mining industry given high energy prices and decreased value in crypto markets, UAE’s crypto mining hardware retailer, Phoenix Technology is investing $300 million in crypto mining sites across the globe.

As per recent news, Phoenix Technology is developing a large scale site in the United States which will be launched in Q2 of 2023. The site will utilize the latest mining technologies including immersive cooling.

Carl Agren, CEO of Phoenix Technology, stated, “Phoenix Technology is aiming to switch from a regional player in the mining space to a global one. In other words, developing, maintaining, and operating sites all around the world. We have been currently focusing on the North American markets, mainly the US and Canada. However, we are planning on setting foot in other regions to try to identify opportunities in untapped mining areas. We are devoting $300 million to be invested in different sites that are development opportunities, under development, or currently operational.”

The company has also signed a strategic partnership with MicroBT, blockchain and AI entity, making it the exclusive sales partner of WhatsMiner in the MENA region.

Phoenix Technology has claimed that it will develop partnerships with other companies that are also pushing the boundaries of mining, such as gas flaring, to bring more technologically advanced solutions to the local market and globally.

Recently Munaf Ali, founder and CEO of UAE-based Phoenix Group, stated that he believes MENA is fast moving toward crypto and blockchain adoption. In the interview he explains, “The Middle East is fast helping the global diversification of jurisdictions which are friendly to operate in. This goes for countries where crypto firms can set up, whether they are crypto exchanges or mining operations.”

In November 2021, Phoenix Technology announced that it signed one of the world’s largest purchases on record for crypto mining rigs, worth US $650 million. In an interview Munaf Ali stated that Phoenix was part of a project that would be developing a large scale crypto mining farm in the UAE.

The GCC and MENA region very attractive destination for crypto mining

The GCC and MENA region very attractive destination for crypto mining

Crypto mining is an integral part of the development of crypto economies. As the MENA region opens up its economy to digitization and crypto-related activities and as the world is challenged by an ongoing energy crisis, MENA is probing to become an attractive destination for crypto mining.

While the biggest crypto mining markets are currently in the USA, China, Kazakhstan and Canada, the energy crisis and the crypto bear market could help the GCC become a leading crypto mining hub.

Mohamed El Masri, founder and CEO of Permianchain, which operates Bitcoin mining data centers in Canada using wasted energy, states, “The adoption and implementation of blockchain data center infrastructure can support the digital stability and financial security of the GCC region. Hypothetically, the GCC has the opportunity to attract close to $1.0 trillion in economic growth by laying the groundwork for powering the digital economy.”

El Masri confirms the main challenge is calling out the financial regulators, mainly in the financial free zones, to stop taking the “enforceability approach” and take a “regulate-first approach.”

Nonrenewable resources to boost mining 

El Masri also mentions that given that the GCC is an oil and gas-rich region, there is an abundance of natural gas energy being wasted each day. Notably, such gas energy supports the implementation and commissioning of low-cost power plants to attract bitcoin mining companies from all over the world to set up in the region.

According to him, this will allow the region to become a leader in providing field-generated electricity “to power the future digital economy all while reducing emissions and decarbonizing the GCC’s oil and gas sector.”

The World Bank has reported that the MENA region accounted for 40% of the world’s flaring, with Iran, Iraq and Algeria generating 75% of MENA’s flaring. Meanwhile, Saudi Arabia, Kuwait, UAE and Qatar have low flaring intensity.

Adopting new technologies

Munaf Ali, founder and CEO of UAE-based Phoenix Group, involved in crypto mining equipment sales and projects, believes MENA is fast moving toward crypto and blockchain adoption.

“The Middle East is fast helping the global diversification of jurisdictions which are friendly to operate in,” Ali states. “This goes for countries where crypto firms can set up, whether they are crypto exchanges or mining operations.”

Ali confirms that GCC governments have started to address this by recognizing these new business activities and are issuing licenses to crypto market participants.

The Phoenix CEO espoused other benefits, including job creation, the development of a green renewable energy industry, and the generation of crypto/USD for circulation inside the local economy which in turn boosts economic activity.

Growing interest in mining

UAE investment firms have also shown interest in crypto mining investments. Nabyl Al Maskari, executive chairman of Al Maskari Holding, in a panel discussion during the Security Token Summit in June 2022, noted that there will be significant crypto mining investments happening in the UAE.

“We will have significant crypto-mining investments because the UAE is a low-cost energy producer,” Al Maskari certifies. “We are in the solar belt and have nuclear power with two reactors online. We can as such mine green Bitcoin or other tokens that come out.”

During Binance Week 2022, Khalifa AlJaziri, AlShehhi, Commercial Affairs Regulatory Sector Projects advisor at the Ministry of Economy in UAE, claimed that the Dubai World Trade Center Authority (DWTCA) would be legislating the crypto mining sector. He stated, “We are setting the guidelines and rules needed to regulate crypto mining within this crypto framework.

The UAE is not the only country that has shown interest in crypto mining. Oman Investment Authority (OIA) took part in a $350mn equity round in Crusoe Energy Systems. The US firm helps oil and gas producers cut flaring by using stranded natural gas to power cryptocurrency mining. Crusoe systems set up operations in Oman as well. 

Pierre Samaties, global head of Crypto Economy and Energy, reaffirmed that Bitcoin mining in the region is growing.

“Given we have a huge difference between the summer load curve and the winter load curve, Bitcoin mining helps to support renewable energy investments to increase utilization of the asset by using it during downtimes for Bitcoin mining,” Samaties says. The executive says this helps to balance the energy system.

Samaties also affirms that Bitcoin mining is seen as a strategic asset, a cornerstone for building a crypto economy in the region.

For those who would like to read or share this article in arabic it is also on Cointelegraph MENA 

UAE Mubadala Capital takes first step in crypto blockchain direction and sponsors Token 2049 in London

UAE Mubadala Capital takes first step in crypto blockchain direction and sponsors Token 2049 in London

UAE Mubadala Capital, a wholly owned subsidiary of Abu Dhabi sovereign fund Mubadala, is sponsoring for the first time a crypto event in the United Kingdom. Mubadala Capital, global asset managers with a presence in Abu Dhabi UAE, London, New York, Rio de Janeiro, and San Francisco, manages over $16 billion worth of assets.

Mubadala Capital is participating as a bronze sponsor at the Token 2049 event in London. While Mubadala Capital commenced operations in November 2021 as a subsidiary, it had been investing for over a decade. The wholly owned asset management is focused on investing in disruptive technologies.

The company had grown significantly in scale over the past decade, with $9 billion in third-party capital vehicles on behalf of over 50 institutional investors.

While Mubadala Capital has a strong portfolio of investments in companies across the sports media and entertainment sector including EMI Music Publishing, Endeavour Group Holdings, Reigning Champs, Ultimate Fighting Championship (UFC) and the Yankees Entertainment and Sports Network (YES Network), it has not announced investments in the crypto or blockchain ecosystem.   It has acquired Canada Cartage, a leading logistics platform, as well as invested in Australian company SX Global which is set to promote the next FIM super cross World Championship, but nothing pertaining to blockchain or crypto that was made public. 

It also recently closed its first Fund in Brazil, under the name the Brazil Opportunities Fund I, with a total commitment of $322 million and in August 2021 it also closed a $1.6 billion third party equity fund focused on investing in media, sports, consumer and food services across North America and Europe.

Mubadala Capital has even invested $72.5 million in a Series A round in Pretzel Therapeutics which is developing a suite of first in class therapies that can correct mitochondrial DNA mutations, modulate mitochondrial DNA expression, and improve mitochondrial quality control.

It seems that their sponsorship of Token 2049, Europe’s crypto event, being held on the 9th-10th of November might be the first step in the direction of crypto and blockchain ecosystem.

TOKEN2049 is organized annually in London and Singapore, where founders and executives of the leading Web3 companies share their view on the market. It will have more than 150 speakers and 3000 attendees.

There were some statements made by the CEO and Managing Director of Mubadala, that showed signs that they were starting to look into the crypto ecosystem and already investing in blockchain.

CEO and Managing Director Khaldoon Al Mubarak said in an interview with CNBC back in 2021, “I think it (crypto) is real. This is a business that had $200 billion worth of value two years ago, and is $2.5 trillion value today and growing. So while many people are sceptics, I do not fall in that category.”

He added at the time, “The evolving regulatory environment will help crypto transition into something new. We are investing in the ecosystem around crypto, be it blockchain, energy usage.”

It is noteworthy that Mubadala was one of the investors in virtual asset exchange out of Abu Dhabi called Midchains.

Companies participating at Token 2049 include, Aave, Tezos, Tether, The Sandbox metaverse, BitMex exchange, Sygnum Digital bank, Elrond, Skale and so many more.

So could this be the start of a new journey for Mubadala Capital into the crypto, metaverse and blockchain space? It just might be and it would not be that surprising given the investments and funds targeting crypto and its ecosystem in the region.

The MENA region is witnessing more and more venture capitalist funds investing in crypto and blockchain entities, with names such as Cypher Capital, OasisX part of CryptoOasis ecosystem, Ghaf Capital, Shorooq Partners and even Investcorp launching funds focused on crypto, and Blockchain.

In addition, UAE artificial intelligence firm G42, which Mubadala is an investor in, launched a $10 billion fund to invest in late-stage technology companies. The fund is targeting a broad spectrum of technologies.

Even Canadian businessman, Kevin O’ Leary, nicknamed “Mr. Wonderful”, an advocate of cryptocurrency recently announced that he is now a UAE citizen because he wants to work freely in a region that has attracted investment by some of crypto’s heaviest hitters, including FTX, Binance and Crypto.com. He also announced the launch of a Web3.0 investment fund called Cipher with the lead investor coming from the UAE.

So we might be reading about Mubadala Capital’s latest investment in crypto, blockchain or both sooner than we think.

Banks will become Dapps and 2022 is a crypto building year

Banks will become Dapps and 2022 is a crypto building year

The chairman of Belobaba, a crypto native hedge fund with a regulated security token, believes that Banks will become Dapps, and that this was the year of building crypto not a bearish year.

Five year old, Belobaba utilizes big data and AI in its investment decisions… The company is currently setting up its headquarters in the UAE as it seeks to get regulated in GCC region. The hedge fund is already regulated by the Gibraltar Financial services commission and operating legally in the USA, as well as in Spain and Estonia.

Lluís Mas, chairman at BELOBABA spoke to LaraontheBlock expressing his views on the crypto market,the banking sector and why they are setting up their headquarters in UAE.

The hedge fund which currently has just $5 million under management is seeking to grow and expand. According to Mas, “I don’t consider it a bad year for crypto and I wouldn’t call it a bullish or bearish market, because just remember in the bearish markets of 2017-2019 Uniswap was created as were NFTs. For me this year is a building year as we see Ethereum merge and global regulations pick up.  Companies like Black Rock are entering the crypto space and financial actors such as Coinbase are offering crypto products to institutional investors. So for me it is definitely a building year.”

He also states that it is absolutely unfair to talk about a crash of Bitcoin. He says, “Bitcoin is at $20,000 today, it is a far cry from where it started out. We also see billions of dollars being invested in esports, DeFi and blockchain with many projects performing well.”

While he doesn’t foresee any significant changes in the crypto market in the next few months, he does see a pick-up in the middle of 2023.  Mas states, “While I don’t see much change in the crypto scene today, what I do know is that Ethereum is super cheap, and things should start to pick up in mid-2023.”

When touching on the topic of banking and its evolution, Mas mentions a well-known phrase in the crypto community, “ Banks are necessary but bankers not” As he explains, for some time bankers have not been taking care of their customers, which has led to the rise of neo banks. For him the future of banks is Dapps. He explains, “ Banks will slowly become dapps first they have the money and collateral, secondly they are working hand in hand with regulators, so in the next few years they will move to decentralized applications. Bitcoin is not here to destroy, but to make things more efficient and more user friendly. This is unstoppable and our role is to educate as many people as possible.” 

According to Belobaba chairman Dapps stand as the new paradigm and DeFi represents a change in the business model of traditional banking giving the opportunity to put the user at the centre of the value model. 

He notes that the banks of the future will not be huge with 1000 employees, but might be as small and nimble as entities such as Uniswap which has just a dozen or so employees. 

While Belobaba seeks to build one day a crypto bank, the company is also bullish on NFT gaming industry which will reach $800 billion by 2024. Belobaba also sees Security token offerings as a huge opportunity given it has grown by 84 percent. As for crypto, it is expected to become a $24 trillion market by 2030.

In terms of expansion, Belobaba is moving its headquarters to Dubai UAE, and are in the process of seeking a license. Mas says, “We are working with local partners to move our headquarters here. There are two reasons for our move; first given we are originally from Spain, the GCC as a geographic region is a comfort zone. In Gibraltar we are accustomed to the Commonwealth laws, as is the situation in UAE.”

He adds that the region is connected to Asia and other continents, and most in the region are open to investing.

While it might not be easy to get a license says Mas, he is confident that given their track record and strong partnerships such as that with RSM their efforts will be fruitful. He explains, “We are actively looking into Abu Dhabi regulatory ADGM, VARA in Dubai and Bahrain.  RSM is a global network of audit, tax and consulting experts that help us ensure our investors are protected.”

Recently Belobaba invested 1 million Euros in Team Queso, a leading esports club in mobile gaming.

Crypto advocate Kevin O’Leary turned UAE national launches Web3.0 fund with lead investor from UAE

Crypto advocate Kevin O’Leary turned UAE national launches Web3.0 fund with lead investor from UAE

Kevin O’ Leary, nicknamed “Mr. Wonderful”,  a Canadian businessman, entrepreneur, and television personality and an advocate of cryptocurrency stated that he recently became a UAE citizen because he wants to work freely in a region that has attracted investment by some of crypto’s heaviest hitters, including FTX, Binance and Crypto.com

This came as he announced at Converge22 Blockchain and cryptocurrency conference that he was launching a Web3.0 investment fund called Cipher with the lead investor coming from the UAE.

As he noted on stage, “We’ve got to get away from this speculative price of an asset here. We’ve got to find reasons that this technology gets embedded into the economy.”

He went on to say, “I recently became a citizen of the United Arab Emirates to work freely in a region that has attracted investment by some of crypto’s heaviest hitters, including exchanges FTX, Binance and Crypto.com. The new all-Web3 fund’s lead investor comes from the United Arab Emirates.  There’s a tremendous amount of capital and interest there to invest in this space.”

The Shark Tank investor also commented on Jamie Dimon, the chief executive officer of JPMorgan Chase & Co., who called Bitcoin and some other cryptocurrencies as “decentralized Ponzi schemes” during the U.S. House Committee on Financial Services hearing.

“This is my interpretation. He feels threatened by some of this technology, particularly around payments,” O’Leary said. “This isn’t about speculation on asset price. This is about reducing the fees of how the world’s economies work more transparent, more productive, completely auditable, regulated, but less expensive.”

O’Leary is a vocal proponent of Web3 technology as a spokesperson for cryptocurrency exchange FTX and an investor in financial technology company Circle, the issuer of the USDC stablecoin and the organizer of the Converge22 conference.

Abu Dhabi investment firm ADQ launches $200 million fund for Digital assets Fintech, and supplychain

Abu Dhabi investment firm ADQ launches $200 million fund for Digital assets Fintech, and supplychain

Abu Dhabi’s ADQ and Further Ventures, an investment firm back by ADQ have launched a $200 million fund focused on Fintech, digital assets and supplychain.

As per the news, entrepreneurs and experienced executives who choose to launch their next venture with Further will have access to product and engineering resources for concept development; seed capital required to take the business to Series A; and reserved capital for following on through multiple rounds of funding beyond capital investment.

Further ventures also has a dedicated team that provides legal and regulatory support, talent sourcing and recruitment, operations, and business development expertise with access to some of the largest organizations in the Middle East and North Africa (MENA) region as well as venture builders globally, as part of Further’s extensive network.

Further is focused on building, digital asset payments products, blockchain asset custody, security solutions, marketplaces, wallets and other infrastructure for institutions. In addition to Fintech, such as wealth management, SME finance, financial inclusion, remittance, and payroll .

Finally they will focus on supply chain examples of which include digital freight and warehouse management companies and other supply chain-related business.

In addition to launching its own ventures with founders, the firm will also establish the Further Network by actively investing in and co-creating start-ups with leading global venture builders.

Lawrence Summers, previous US Secretary of Treasury showcases his views on Crypto and Blockchain at UAE AIM summit 2022

Lawrence Summers, previous US Secretary of Treasury showcases his views on Crypto and Blockchain at UAE AIM summit 2022

Lawrence H. Summers, the renowned American economist who served as the 71st United States Secretary of Treasury from 1999-2001 under Bill Clinton, as well as the Director of the National Economic Council from 2009 to 2010 under Barack Obama, will be offering his insights into the global economy and financial markets as well as his views on crypto and Blockchain during the 13th edition of AIM Summit being held on the 21st and 22nd of November 2022 in Dubai UAE.

AIM Summit is the region’s leading forum for providing insights on investment developments and global market conditions. This year, special emphasis is placed on the current global economy, inflation, stagflation and recession. Summers will provide his views on why the U.S. will likely be headed into a recession within the next two years. Summers will discuss how globalization, trade, and technology will play a pivotal role in the future of the global economy.

In 2021, Summers repeatedly called out the potential for inflation in U.S. while the U.S. Federal Reserve and many economists viewed rising prices as transitory.

Commenting on his participation at AIM Summit, Summers states, “Investors in alternative assets must navigate a challenging macroeconomic environment today and anticipate how it will impact their portfolios tomorrow. At the AIM Summit in Dubai, I will address some of the most pressing questions investors should be asking – will the Fed’s newfound hawkishness lead to a painful recession, or will they engineer a soft landing? Will we return to the post-2009 era of secular stagnation, or a new paradigm? Will prognostications of China’s economy overtaking America’s prove similar to those of Russia and Japan, which look ridiculous today?”

Raha Moradi, Chief Executive Officer of AIM Summit stated, “We are honoured as organizers of AIM Summit to be welcoming a well renowned economist and top U.S. ranking official such as Lawrence H. Summers. His views on U.S. and global inflation, recession, and world policies will offer our audience valuable information that will benefit their policies and strategies moving forward. Investors and policy makers alike across the GCC ad MENA region are invited to join us as we hear Summers’ predictive insights.”

The AIM summit gathers and connects investors within hedge funds, private equity, venture capital, digital assets, FinTech with global industry leaders. This year the Summit will cover topics pertaining to portfolio construction, emerging markets, frontier markets, private credit, hedge funds, the future of digital assets, NFTs, metaverse, crypto mining, ESG, impact investing and Web 3.

Audiences will also hear Summers’ views on crypto and Blockchain. Lawrence Summers, is currently an advisor for Digital Currency Group and a board member of Block.Inc, He is also well versed on the topics of cryptocurrencies, stablecoins and CBDCs. In previous events and interviews, he has espoused his belief that cryptocurrencies will do better when regulated in a sound way. He has touted crypto as being one of the most important innovations of this period akin to Digital Gold, and praises stablecoins yet believes global digital currencies are still at a nascent stage. 

Abu Dhabi’s ADGM publishes virtual asset regulatory guidelines

Abu Dhabi’s ADGM publishes virtual asset regulatory guidelines

Abu Dhabi Global Market (ADGM), the International Financial Centre in Abu Dhabi, announced that its financial regulator, the Financial Services Regulatory Authority (FSRA), has published Guiding Principles on its approach to virtual asset regulation and supervision as a way to outline its expectations for the asset class and service providers in the sector.

The principles state the FSRA’s risk appetite and priorities for the sector, with each principle covering one of the key pillars of ADGM’s holistic approach, which includes a robust and transparent regulatory framework; high standards of authorization; preventing money laundering and other financial crimes; risk-sensitive supervision; enforcement powers for regulatory breaches; and its commitment to international cooperation. They will therefore be of particular relevance to potential applicants to ADGM and other regulators with an interest in this area.

As per the document, The FSRA’s risk appetite for VA activities is such that it will only admit operators to its jurisdiction who at the outset can unequivocally meet the transparent, high standards outlined in its framework. This will maintain the best-in-class reputation of the ADGM ecosystem and instil market confidence to promote growth and investment. 

In addition the document discusses stablecoins, ADGM will only permit those tokens where price stability is maintained by the issuer holding the same fiat currency it purports to be tokenising on a fully backed 1:1 basis. This therefore currently prevents the use within ADGM of other types of stablecoins, such as algorithmic stablecoins.

Emmanuel Givanakis, CEO of the FSRA, said, “These guiding principles will provide greater clarity to investors, other regulators, industry and the wider public of our approach to regulation in this area and key expectations we have set on current virtual asset service providers in ADGM and potential applicants. They also outline the tools we have at our disposal to mitigate the material risks that are born from these activities and the regulatory powers to identify and act upon any misconduct. Consistent with the FSRA’s broader strategy to align with international best practices, these principles make clear the high standards of our framework at a time of increased volatility and regulatory focus.”

UAE takes top spot globally in attracting crypto FDI in 2022

UAE takes top spot globally in attracting crypto FDI in 2022

According to a recent report by FDI markets published in FDI Intelligence, UAE topped the list of countries with most crypto related FDI projects. UAE had a whopping 15 projects making it number one. It was followed by the USA which attracted 11 crypto projects; Brazil came in third with 7 projects, followed by UK, Lithuania at 4th place with 5 crypto projects, then Singapore in fifth place with 4 projects, followed by Canada, Australia, ( 3 projects each) and France, Sweden with 2 projects 

Some 98 foreign direct investment (FDI) projects were announced in crypto related activities in the first half of 2022, an increase of 145% from the same period in 2021. This number was higher than any pre-recorded database since 2016. It was also double the figure for the whole of 2021.

Most of the companies who announced FDI projects in H1 of 2022 were those that involve crypto services, such as crypto exchanges, who set up new physical presence in foreign countries.

This is true of UAE which attracted the likes of Binance, OKx, Huobi, crypto.com, FTX, and many others in 2022 since it announced its virtual assets regulatory authority. Today the UAE boasts of over 1200 crypto blockchain related entities and is seeking to attract 5000 Blockchain and metaverse companies in the next 5 years.