Abu Dhabi Customs to showcase new blockchain solutions at Gitex 2023

Abu Dhabi Customs to showcase new blockchain solutions at Gitex 2023

UAE Abu Dhabi Customs will be showcasing the latest innovative blockchain enabled projects for customs systems during its participation at Gitex 2023 under the slogan “We Shape Tomorrow’s Customs with Today’s Innovations”. Gitex 2023 will be held at Dubai World Trade Centre from October 16 to 20, 2023.

This year, Abu Dhabi Customs is highlighting its innovative digital technologies and solutions that keep pace with the latest technologies of the 4th industrial revolution and artificial intelligence, as well as launching its latest innovative projects that incorporate blockchain technology into customs systems.

Mohammed Husain Al Balooshi, Head of Corporate Communications and Marketing at Abu Dhabi Customs, stated, “Through its participation in GITEX Global 2023 within the Abu Dhabi Government pavilion, Abu Dhabi Customs seeks to showcase the latest innovative solutions and technologies adopted in its customs work system, and their role in enhancing distinguished digital services and adopting the best international practices to increase operational efficiency, which supports our efforts to achieve our vision of global leadership to be a customs authority that leads change in pursuit of enhancing security and facilitating trade, especially in line with the pillars of ‘UAE Centennial 2071‘, ‘We the UAE 2031’ vision, and the economic directives of the Emirate of Abu Dhabi.”

China’s Bitcoin and Blockchain manufacturer Canaan to install 100 MW crypto mining site in Oman

China’s Bitcoin and Blockchain manufacturer Canaan to install 100 MW crypto mining site in Oman

China’s Bitcoin crypto mining and Blockchain hardware manufacturer, Canaan, has signed a crypto mining agreement with Oman’s Green Data city to pilot phase of a new crypto mining operation in Oman.

The new site will 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.

The crypto mining operations in Oman will start in Q4 of 2023.

In August 2023 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.

Phoenix Group is experienced in the development, operation, and management of crypto data centers. It is also the exclusive distributor of industry-leading mining equipment, MicroBT.

Oman was chosen as a location due to the long-term security provided by the Green Data City mining license, the entities’ common vision to develop cryptocurrencies mining and AI applications with the Ministry of Transport, Communication and IT (MTCIT), and the cooler weather in Oman, in particular in the region of Dhofar, which reduces the cooling energy consumption to a minimum, making the sultanate a sustainable destination for mining in the region.

The deployment will start with the new Avalon Box mining container featuring immersion cooling. The project also has the potential to deploy Canaan’s other advanced products, including the latest series A14 Avalon miners with a record efficiency of 20J/T, later in
2024.

Green Data City LLC is the company that operates the first license for sustainable crypto-mining in Oman since 2022. International mining companies can register and operate in Green Data City with long term agreements. The first phase of development consists of 200MW of mining capacity, the second phase will reach 400MW hyperscale data center capacity with natural cooling, renewable energies and downstream applications.

Blockchain deposit token payment platform Fluent to set up operations in UAE

Blockchain deposit token payment platform Fluent to set up operations in UAE

USA based Fluent Finance, a blockchain enabled fintech infrastructure company responsible for developing the connections from core banking to public layers, bridging Web2 to Web3 utilizing the Fluent Protocol, has joined UAE’s Ministry of Economy NextGEN FDI program as Fluent plans to launch its operations in Abu Dhabi and expand its workforce in the UAE to 125 people in the next five years.

Fluent is working to issue deposit tokens which are stable-valued, regulatory-compliant digital assets interoperable with core banking systems. With Fluent, banks may issue fiat-equivalent tokens directly to public blockchains based on outstanding customer deposits and central bank-issued CBDCs.

Fluent will use its new UAE headquarters to deploy and scale its proprietary Fluent Economic Bridge, which can be used by importers and exporters to settle transactions via stablecoins or, increasingly, deposit tokens.

They are already piloting the platform in Kenya, and now hope to develop a digital trade corridor with the UAE.

Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, said Fluent’s participation in the NextGen FDI initiative underlines the UAE’s status as a hub for global trade and a supportive ecosystem for new technologies such as blockchain: “The UAE has become a prominent advocate for the modernization of the multilateral trading system, as well as a supportive place for the development of the tools and applications that can deliver it. I am optimistic about the possibilities of the Fluent Economic Bridge, and the potential for digital currencies to improve the efficiency and accessibility of global supply chains. In the build-up to the World Trade Organisation’s 13th Ministerial Conference in Abu Dhabi in February next year, encouraging platforms such as those developed by Fluent will offer an important proof point for the UAE’s leadership on trade technology.”

Bradley Allgood, Fluent Finance’s Chief Executive Officer, said the UAE was the obvious place in which to launch Fluent Economic Bridge. “The UAE offers exactly the kind of supportive, enabling environment that Web3 companies such as Fluent require. The combination of thoughtful regulation, forward-looking vision and advanced technology ambitions means we have the right foundations on which to develop our product and grow our organization. Importantly, this is also an important trade crossroads, which provides a multitude of opportunities to deploy our platform. We genuinely believe that, with the right support, we can transform Fluent Economic Bridge into the next unicorn.”

UAE Blockchain enabled Silal food traceability platform acquires major food distributor

UAE Blockchain enabled Silal food traceability platform acquires major food distributor

Blockchain enabled Silal traceability agriculture and food safety platform, backed by Abu Dhabi’s ADQ has acquired a majority stake in SAFCO Group, a leading food and beverage distributor in the UAE.

Prior to this, UAE’s ADQ, Silal, announced the launch its blockchain powered platform to trace the lifecycle of food from farm to fork. As per the news using the new traceability service is as simple as scanning the QR code of a Silal Fresh product through the Silal App.

Today, the acquisition of SAFCO integrates with Silal’s strategic growth ambitions and significantly strengthens its presence in the hospitality, restaurant and catering segment, leveraging SAFCO’s 30-year track record in importing, distributing and exporting a wide array of premium food and non-food products across the UAE, Middle East and Africa. The acquisition integrates with Silal’s strategic objectives and growth ambitions.

SAFCO’s acquisition is a pivotal step in enhancing Silal’s capacity to meet the market’s demand for a wide range of high-quality products and will accelerate the company’s efforts to enhance its food distribution.

UAE FAB bank completes Blockchain payments pilot with J.P. Morgan

UAE FAB bank completes Blockchain payments pilot with J.P. Morgan

UAE FAB bank, (First Abu Dhabi Bank), has announced the successful completion of its J.P Morgan’s Coin blockchain based cross border payments.

Coin systems support digital solutions on proprietary blockchain network to enable instant transfer and settlement of value on a permissioned distributed ledger.  The pilot phase, executed seamlessly and within satisfactory response times, have demonstrated the capabilities and potential of blockchain technology in enhancing cross-border payment solutions.

FAB’s achievement through collaboration with Onyx by J.P. Morgan, is a demonstration of the bank’s commitment to leveraging cutting-edge technologies to provide innovative solutions to its clients around payments space and particularly cross border payments domain.  Looking ahead, FAB’s Global Transaction Banking business plans to explore further opportunities using J.P. Morgan’s Coin Systems.

Bahrain’s ABC Bank was the first bank to actually go live with Coin System built on Onyx by J.P Morgan, after two years of piloting.

UAE M2 crypto exchange,custodian and investment platform launches Bitcoin Ethereum yield product

UAE M2 crypto exchange,custodian and investment platform launches Bitcoin Ethereum yield product

UAE base M2, a crypto exchange, custodian, and investment platform for crypto investors has officially launched its international platform, and is offering its first product M2 Earn, that provides yields of up to 10.5% on Bitcoin and Ethereum.

The M2 Earn product available at launch by M2, provides up to 10.5% yield on Bitcoin and Ethereum and investors can calculate their investment yields over a preferred timeframe by using the Earn calculator featured in the app.  M2 investment products and the app have been inspired by extensive industry benchmarking and mirror the rigorous systems of investment banking which are now being applied to the digital asset sector.

Stefan Kimmel, M2, CEO, said: “The arrival of M2 group gives institutional investors, family wealth offices and retail investors the invitation they have been looking for to confidently and securely invest in the fast-growing digital asset sector. The first decade of crypto was marked by the introduction of Bitcoin and the highs and lows of a volatile asset class with a heavy focus on speculation. M2 has been built to give experienced investors exposure to the digital asset sector by offering market leading yields that are based on real returns.”

As per the press release, M2 has to date obtained a license from The Securities Commission of Bahamas (SCB) as a Digital Assets Business and M2 Limited and M2 Custody Limited (M2 ADGM) a Financial Services Permission from the Financial Services Regulatory Authority of the ADGM as a Multilateral Trading Facility (MTF) and for Providing Custody.  Combined, the regulatory bodies offer the most comprehensive and progressive regulatory frameworks for digital assets in the world. Additionally, M2 has initiated licenses in several jurisdictions globally.

The M2 user experience has been designed by investors for investors and aims to eliminate the barriers slowing them down, features available on M2 at launch include:

  • Calculate the Real Yield – the M2 Earn calculator allows investors to easily evaluate what level of returns they can anticipate over 30, 60, 90 days. The Earn calculation you see is the real yield.
  • Set and Earn– The institutional grade Smart Trading features on M2 allows users to execute large buy and sell orders seamlessly, reducing transaction costs and saving users time.
  • Security beyond banking benchmarks – M2 security systems have been designed by cybersecurity experts who operate at the highest-level and all protocols are externally audited.
  • Global Community Support – The M2 support team provides coverage across multiple time zones ensuring 24-hour support for customers.

Marking the arrival of M2, the MMX token (ERC20) will be available to users and feature at the core of the M2 experience. The MMX token is designed to provide onboarded clients with specialized access to specific products and services within the M2 ecosystem that will include the ability to boost yields for M2 earn products (MMX tokens used to boost yields will be burned by M2, making it deflationary). The MMX token will also provide advanced access to new yield products and new digital asset listings. 

M2 plans to make the MMX token available on both centralized and decentralized secondary marketplaces. The token’s primary purpose is to enhance users’ experience of the M2 ecosystem and is not intended to serve as an investment vehicle or represent an ownership stake in M2. 

MMX will be freely transferable on the Ethereum blockchain. Provided users meet the M2 onboarding requirements, MMX tokens can be exchanged for other virtual assets and fiat currency, depending on the user’s needs. The M2 platform enables fast and secure trading of digital assets for fiat, fiat for digital assets, and digital assets for other digital assets, as well as offering high yield earn products. Visit M2.com.

UAE HAYVN crypto trading platform processes 22,000 crypto transactions in 2023

UAE HAYVN crypto trading platform processes 22,000 crypto transactions in 2023

UAE based HAYVN Pay an AC Holding Limited Dubai, offering,  digital asset-focused financial institution delivering Trading, Custody, Asset Management and Research services has processed over 22 000 cryptocurrency transactions to date in 2023.

As per HAYVN linkedIn post, “The market demands a payment platform that is accessible, regulated, affordable and efficient.”

The post adds, “HAYVN Pay is a regulation and technology-led business. We currently meet and exceed the requirements of several payment regulators and will continue to lead the integration of cryptocurrency into the traditional payments ecosystem.”

Prior to this announcement, HAYVN announced that it had received obtained initial approval from the Virtual Assets Regulatory Authority (VARA) in Dubai. HAYVN will now undertake the in-depth process of applying for a Virtual Asset Service Provider License, in accordance with VARA requirements.

The initial approval affirms HAYVN’s commitment to strengthening its presence throughout the by ensuring firm commitment to regulatory compliance in the region, which remains a core territory for HAYVN.

At the time CEO of HAYVN, Christopher Flinos stated, “We are delighted to have met the requirements for our initial approval from VARA and look forward to being part of VARA’s regulatory framework. VARA regulation solidifies our position as the trusted cryptocurrency provider regionally. This is a core market of ours, and our regulatory strength here further supports our broader GCC business. We are proud to be a regulation-led firm, committed to upholding the highest standards of regulatory compliance, as we continue to expand our presence and contribute to the growth of the digital asset ecosystem here in the UAE.”

UAE Enjinstarter launches AYA Web3 Launchpad to tackle climate challenges

UAE Enjinstarter launches AYA Web3 Launchpad to tackle climate challenges

UAE Enjinstarter launched in 2021 as a Launchpad, incubator, crowd funding, and advisory platform for Web3 metaverse, gaming, entertainment and impact and sustainable projects has announced the launch of AYA, ( means miracle in Arabic) dedicated to empowering innovators to tackle climate challenges.

“MENA is at the forefront of climate change, with temperatures expected to rise by 2.5 degrees by 2050. The UAE is emerging as a global leader in sustainability and Web3, attracting builders, investors, and climate warriors,” says Prakash Somosundram, our CEO.

With a focus on areas like reforestation, mangrove conservation, and sustainable agriculture, AYA aims to bridge the climate financing gap, offering a platform for high-impact startups to access innovative technologies, raise funds, and leverage tokenized carbon credits.

At the beginning of 2023, Enjinstarter appointed Vasseh Ahmed as the new Managing Director to lead the Web3 efforts in the MENA region. Vasseh spoke with LaraontheBlock discussing Enjinstarter’s plans to help companies reach their Web3 ambitions while positioning Enjinstarter as the go to provider for impact and sustainability projects.

In the interview Ahmed states, “Web3 has a major role to play in addressing the climate crisis. Carbon credits, in particular, can benefit from Web3’s underlying technology to increase transparency and accessibility. We want to support projects that are looking for ways to shift incentives away from exploitation and toward preservation and regeneration.”

In May 2023 EnjinStarter MENA, a web3 Launchpad and incubator, became the first Launchpad globally to receive initial approval by Dubai’s virtual asset regulatory authority.

UAE based Solarix Ventures is seeking to invest in Web3 technology entities and will be participatiog at the Abu Dhabi Family office Summit on the 23rd of November 2023.

Crypto mining firm Phoenix Group sells 10% of its shares to Abu Dhabi IHC

Crypto mining firm Phoenix Group sells 10% of its shares to Abu Dhabi IHC

UAE based Phoenix Group has sold 10% of its company shares to Abu Dhabi conglomerate International Holding Company’s subsidiary.

IHC’s wholly owned unit, International Tech Group, has entered into a definitive agreement to buy 10% stake in Phoenix Group, according to a disclosure on the Abu Dhabi Securities Exchange (ADX).

The company is currently completing all required procedures and obtaining regulatory approvals to complete the transaction, the disclosure noted.

This announcement comes at the heels of an agreement between Muscat-based Green Data City and Phoenix Group to develop a $300 million crypto-mining farm in Oman. The 150-megawatt farm, which will be one of the largest crypto-mining data centers in the region, will be installed in Green Data City, the entities said in a joint statement. The farm is expected to be fully operational by the second quarter of next year.

Pheonix Group had announced on several occasions that it was seeking to have an IPO ( Initial Public Offering). With the 10% acquisition by IHC this could well put the IPO on hold.

Phoenix provides crypto-mining equipment distribution and hosting services. The company has a portfolio of mining facilities in the Middle East, Europe, the US, and Canada.

In the first half (H1) of 2023, IHC  generated net profits valued at AED 10.39 billion, up from AED 10.35 billion during the same period a year earlier.

This is a reflection of Abu Dhabi’s government interest in crypto mining. Prior to this Marathon Digital a digital asset mining entity announced in January 27th 2022, that it had entered into a shareholder’s agreement with FSI ( FS Innovation), the BTC mining subsidiary of UAE ADQ a sovereign fund,  to form an Abu Dhabi, ( ADGM (Abu Dhabi Global Markets) based company.

Marathong Digital will use fossil fule offset or nuclear to power bitcoin mining operation.

Qatar public consultations for its digital assets and investment tokens legislation

Qatar public consultations for its digital assets and investment tokens legislation

As expected The Qatar Financial Centre (“QFC”) Regulatory Authority (“Regulatory Authority”) and the Qatar Financial Centre Authority (“QFC Authority”) have published a consultation paper for their digital assets framework which seeks to regulate investment tokens.

QFC is seeking feedback for the proposed digital assets legislation at a date no later than January 2nd 2024 which means the final legislation will not be available until the first or second quarter of 2024. This comes at the heels of QFC’s launch of its digital assets Lab which will be launched on October 29th.

Aditya Kumar Sinha,  Head Fintech & Digital Innovation at Qatar Financial Centre (QFC) Authority · states on LinkediN, “ The Qatar Financial Centre Regulatory Authority (QFCRA) and the Qatar Financial Centre (QFC) Authority have jointly released a Consultation Paper, and we’re seeking your insights and feedback on our proposals to introduce a QFC Digital Assets Framework. This comprehensive framework is being developed in phases, with phase one dedicated to establishing legislation for a QFC tokenization framework. To make this vision a reality, the QFC Regulatory Authority and QFC Authority have meticulously prepared a range of draft legislative instruments.”

As part of the digital assets legislation is rulebook for Investment Tokens. These rules define the treatment of investment tokens representing specified products, making their activity subject to authorization and supervision, and amendments to existing rules to accommodate investment tokens.”

The Regulatory Authority and the QFC Authority has developed a QFC digital assets framework designed to achieve the following objectives,  develop a legal and regulatory framework for digital assets through the establishment of a tokenization framework in the QFC that will provide legal certainty and a trusted technology environment for digital assets;  provide legal recognition of digital assets and address issues such as ownership of the underlying assets, custody arrangements, the transfer of ownership, trading and exchange of digital assets, smart contracts, among other relevant matters.

It also seeks to develop a trusted technology infrastructure that embeds the standards necessary to ensure trust and confidence among consumers and support for the framework from high quality service providers; and develop a framework that delivers certainty and promotes trust and confidence in digital assets, the market, and the service providers.

QFC authority as mentioned based their proposed framework on benchmarks in Lichtenstein, Switzerland, the European Union, the Monetary Authority of Singapore, various states, and offshore financial Center frameworks in the GCC and other benchmark regulatory jurisdictions.

Henk Jan HoogendoornHenk Chief Financial Sector Officer at Qatar Financial Centre (QFC) Authority added in a post on LinkedIn, Our ambition is to have a solid Digital Asset Framework where real Asset can be tokenized with trusted tokenization partner and supervised by Qatar Financial Centre (QFC) Authority and Qatar Financial Centre Regulatory Authority (QFCRA) .”

As per the documents the proposed digital assets framework is being developed on a phased basis with phase one focusing on the establishment of legislation to provide for a QFC tokenization framework.

In terms of investment tokens, they are tokens that represent underlying’s that are Specified Products under the QFC Financial Services Regulations (“FSR”). They provide for any person who carries out an activity in relation to such a token to be conducting a regulated activity, requiring authorization and supervision by the Regulatory Authority.

So what is the Investment Tokens Rules 2023? It introduces enabling provisions for tokenizing rights (described as investment tokens), in specified products under the QFC Financial Services Regulations (“FSR”) and certain derivatives and Islamic financial contracts declared to be specified products in Regulatory Rules.

Stablecoins, CBDCs, and crypto are not under the regulatory guidelines and as such are prohibited. As per the legislation framework, “

As noted a cryptocurrency token that is used as an alternative to fiat currencies but is not issued or backed by any governmental authority and does not represent any ‘off-chain’ property, is an example of an excluded token. This includes tokens commonly referred to as fully backed stablecoins, as these are regarded as substitutes for currency but are not themselves fiat currency or monetary instruments.”

Yet regulated token services include token validators, token generation services, token custody services, operation of a token exchange, and token transfer services fall under the activities within the digital asset framework.

In addition the proposed amendments to the Special Company Regulations enable Special Companies to conduct the additional activity of issuing certificates, receipts, or other instruments, which would include tokenized instruments. This amendment is proposed on the basis that parties conducting a transaction in digital assets from the QFC (i.e., by way of example, a sukuk or bond Token issuance) may use a Special Company for this purpose.

This comes after QFC has commenced working with blockchain, DLT, and consultancies to develop their digital asset and DLT framework infrastructure.

This week Dubai’s DIFC (Dubai International Financial Center) also released its digital assets consultation paper.