The first regulated crypto exchange in the Middle East has lost $14.8 million

The first regulated crypto exchange in the Middle East has lost $14.8 million

According to ZachXBT, an internet sleuth with over 500 hundred thousand followers on Twitter, Bahrain and UAE regulated crypto broker, RAIN, has been likely exploited for $14.8 million. The exploit happened on April 29th and according to ZacHxbt no statement was made by RAIN on the incident.

On the contrary on May 6th RAIN Bahrain tweeted “It was our pleasure to have our General Manager of Bahrain Mohamed Ateeq speak at the Sixth Innovation and Entrepreneurship Forum, organized by the University of Bahrain as part of the Manama week events by the Southern Municipality. It is always a pleasure for us to share Rain’s journey that lay the foundations for the crypto sector in the MENA region.”

According to ZachXBT on TME, “It appears the crypto exchange Rain was likely exploited for $14.8M on April 29, 2024 after their BTC, ETH, SOL, and XRP wallets saw suspicious outflows. Funds were quickly transferred to instant exchanges and swapped for BTC and ETH.”

He added, “As of now Rain has yet to make any statement about the incident.”

He noted that the stolen funds currently sit on these addresses

137.9 BTC

bc1q53aawrkpt5lvk2e30z36unvmhqqdru7q4rprp2 (https://mempool.space/address/bc1q53aawrkpt5lvk2e30z36unvmhqqdru7q4rprp2)

1881 ETH

0x197bc094f990261fd6841342901c451858756c28 (https://etherscan.io/address/0x197bc094f990261fd6841342901c451858756c28)

RAIN crypto exchange had received a license both from the Central Bank of Bahrain as well as ADGM in Abu Dhabi. In Bahrain Rain Management W.L.L. is licensed by the Central Bank of Bahrain as a Category 3 Crypto-Asset Services Provider. It received its license back in 2019.

In 2022, RAIN Crypto exchange raised $110 in a Series B funding round. The round was co-led by Paradigm and Kleiner Perkins with participation from multiple parties including Coinbase Ventures, Global Founders Capital, MEVP, Cadenza Ventures, and CMT Digital.

As per RAIN’s website it is backed by MEVP (Middle East Venture Partners), Dubai International Financial Centre, Coinbase, Paradigm, and KleinerPerkins.

In July 2023 RAIN received a fully regulated crypto broker license in UAE through ADGM.

Lara on the Block tried to get in touch with executives from RAIN but without avail. UAE ADGM also has no official statement to make at this time. The Central Bank of Bahrain could not be reached at this time.

Touting itself as “The most trusted cryptocurrency platform” if this turns out to be true it will have negative effects on crypto sentiments in the region. Crypto investors lost $2 billion to hacks and exploits last year and $333 million in Q1 of 2024. 

UAE and Bahrain regulated CoinMENA allows crypto users to send USDT on TON Blockchain

UAE and Bahrain regulated CoinMENA allows crypto users to send USDT on TON Blockchain

UAE and Bahrain regulated CoinMENA crypto broker has added Telegram’s The Open Network (TON) to its platform, allowing users to send USDT via the TON blockchain. According to the announcement CoinMENA becomes the first regional platform to enable USDT withdrawals via the TON network.

TON joins Ethereum’s ERC-20 and TRON’s TRC-20 as the third blockchain available to CoinMENA users for sending USDT.

CoinMENA Co-Founder and Managing Director Dina Sam’an expressed her excitement in a LinkedIn post saying “Users can seamlessly swap their local currencies to USDT at the most competitive market rates and send them to over 900 million Telegram users. I am extremely excited and proud of the team for mobilizing quickly and becoming the first regional platform to enable USDT withdrawals via TON just 10 days after Tether announced launching USDT on TON.”

CoinMENA Co-Founder and CEO Talal Tabbaa added “Stablecoins, particularly USDT, stand out as crypto’s “killer app,” constituting approximately 70% of on-chain transactions and providing access to U.S. dollars for millions worldwide. The rapid adoption of USDT regionally is unsurprising, given its superior and more convenient experience compared to traditional USD wire transfers. Additionally, with many regional currencies pegged to the dollar, using USDT as a medium of exchange mitigates exposure to FX risk. I’m thrilled about this addition and proud that CoinMENA is leading the charge as the first crypto company to offer this in the region”

The announcement adds that this aligns with CoinMENA’s mission to become the simplest and safest way to onboard people onto crypto by providing a reliable onramp to stablecoins, the most popular use case thus far.

CoinMENA has had a string of partnership announcements with formidable players over the past months. The crypto broker recently partnered with Zodia Markets, enhancing liquidity for its platform. It also partnered with Network international to offer secure onramp from Fiat to crypto, and even partnered with Onramp Bitcoin.

Built on the blockchain Bahrain’s first tokenized Sukuk platform awakens

Built on the blockchain Bahrain’s first tokenized Sukuk platform awakens

Built on Tezos blockchain, Bahrain based Real World Tokenization entity INABLR Middle East recently graduated from the Central Bank of Bahrain’s regulatory sandbox having piloted the first blockchain enabled fractional Sukuk Investment platform. Once INABLR receives its license in around six months, it will become the first global entity to offer fractionalized Sukuk (Islamic Bonds).

Speaking to Lara on the Block Anver Jalaldeen, Founder & Executive Chairman of INABLR, explained that after three years in the Central Bank of Bahrain’s regulatory sandbox he is proud of the accomplishment.

Jalaldeen who previously held the position of Senior Vice President Head of Investment Banking at Sharjah Islamic Bank, came up with the idea of democratizing Islamic Sukuks to allow not only those who held $1000 to invest but also those who had just a $100.

For INABLR and its team, the fractional tokenization of Sukuk aims to empower retail investors by providing them with opportunities to diversify their portfolios and participate in previously inaccessible markets.

Jalaldeen explains, “Once we get the license, which should be in six months, we will become the first entity in the world to offer fractionalized Sukuk. This means clients with even $100 will be able to participate in a Sukuk offering. We are democratizing this Islamic financial product so that retailers across the globe can be part of this.”

Being part of the regulatory sandbox and working the Central Bank allowed INABLR to prove that tokenization of Sukuk on blockchain was safe.

He says, “We worked on everything, KYC, AML, security, custody and other elements that are involved in the process we built a platform that is dedicated to compliance, transparency, and regulatory excellence.”

Tezos Blockchain provided INABLR with a grant. This does not mean that in the future INABLR cannot be built on other blockchain platforms.

Jalaldeen adds that Bahrain was the best location to carry out a real-world assets tokenization pilot as well as receive a license. He notes, “Bahrain has been at the forefront of digital assets and blockchain regulation, and we are very happy to have started our journey here. Bahrain offers a clear licensing for VASPs in terms of categories.”

He is interested in also setting up in Qatar and other GCC and MENA countries in the future. He explains, “We are looking to expand globally either by offering our solution as a B2B, B2C or white labelled solution.”

It is noteworthy that Qatar has shown strong interest in tokenization and the development of digital assets.

With a Sukuk market size of $10 billion in GCC, the tokenization of real-world assets and sukuks in particular will be a significant feat. Next could be the tokenization of real estate and maybe one day sovereign Sukuks.

For Jalaldeen “The CBB’s commitment to fostering innovation has been instrumental in our success. INABLR is not only focused on fractionalizing Sukuk but also aims to revolutionize access to a wide range of real-world assets that are traditionally available only to institutional investors.”

Fasset crypto exchange launches its app in UAE

Fasset crypto exchange launches its app in UAE

UAE regulated crypto digital asset exchange Fasset has launched its official application in the UAE. Fasset received a VARA (Dubai’s virtual asset regulatory authority) license in November 2023.

The app’s launch in the UAE is a strategic step for Fasset, following a successful launch in Indonesia last year, where it attracted over one million users within the first week. Fasset allows users to carry out spot trading and investment services in cryptocurrencies, stablecoins and tokenized real-world assets.

On the educational front the application includes Fasset Play, designed to offer a risk-free learning environment for users to hone their investment skills. This initiative aligns with Fasset’s mission to democratize access to financial services, enabling a wider audience to explore and manage their wealth.

Fasset CEO Mohammad Raafi Hossain commented, “UAE is experiencing a surge in digital asset investment as the government promotes innovation and entrepreneurship in the country. We are happy to extend our secure and transparent platform to customers in the UAE. Our goal is to empower people to have universal access to financial services, so they have more opportunities to build and manage their wealth.”

Fasset’s strategic partnerships have been instrumental in its rapid growth. In Indonesia, the company partnered with Indosat Ooredoo Hutchison to launch the world’s first embedded digital asset exchange in a telco app, reaching over 100 million users. Additionally, Fasset collaborated with Mastercard to introduce a crypto card for users in the region.

Fasset has raised a total of $26.7 million in funding. This includes a significant $22 million raised in a Series A funding round in April 2022, led by Liberty City Ventures from New York and Fatima Gobi Ventures from Pakistan, with additional participation from Soma Capital and MyAsiaVC. Before this, Fasset raised $4.7 million across two rounds, including seed funding from Dubai’s Ceras Ventures in May 2021.

UAE’s first home grown crypto custodian officially launched

UAE’s first home grown crypto custodian officially launched

Tungsten headquartered in UAE has officially launched the first home grown and regulated crypto custodian after receiving a license from UAE’s Financial Services Regulatory Authority (FSRA) to operate at the Abu Dhabi Global Market (ADGM). The platform is designed to store digital assets securely for institutional investors.

Over 12 months to July 2023, the value of digital assets received by the UAE was over US$34.9 billion (Chainalysis). Approximately 67%, or around US$23 billion in transactions, was carried out by institutional investors, demonstrating a significant opportunity for specialist digital assets custody.

As a regulated custodian, Tungsten aims to provide peace of mind for institutions investing in digital assets, including cryptocurrency. 

Arvind Ramamurthy, Chief of Market Development at ADGM said, “We congratulate and welcome Tungsten to Abu Dhabi’s international financial centre, ADGM. As much as the ever-evolving digital asset space needs regulatory controls to protect investors, it also needs risk management services that enable them to understand and invest securely. The concept of Tungsten revolves around this and allows it to harness the opportunities within this industry. As custodian of virtual assets, Tungsten’s offerings, coupled with ADGM’s vibrant ecosystem and progressive regulations for digital assets, will empower investors and maintain market integrity with robust solutions.”

Chris Desjardins, Tungsten Founder and Senior Executive Officer said: “Digital assets present unprecedented opportunities across generations, yet the cornerstone of realising their potential lies in establishing a trusted investment environment. The UAE is at the forefront of this transformation, crafting a robust framework for digital assets that not only sets a global benchmark but also positions it as a pioneering force in the finance sector of tomorrow. Our immense pride stems from being developed and regulated within the UAE, a testament to our commitment to excellence and innovation in this dynamic landscape.”

Tungsten provides secure, regulated crypto custody so clients can confidently invest in digital assets. It is led by Chris Desjardins, an industry veteran with deep knowledge and experience in building and growing digital assets and cryptocurrency solutions. Previously, he co-founded Big Index, a Canadian institutional crypto wallet technology provider successfully acquired by Brane Inc., where he became Head of Product. Through his leadership, Tungsten sets an unparalleled benchmark for digital asset custody.

Tungsten is independent and segregated from other digital asset services, such as the trading of crypto assets, focusing purely on safeguarding clients’ digital assets. The business ensures secure online and offline procedures, including bank-grade physical vaults, enterprise-grade wallet management and world-class network hardware. Additionally, clients benefit from strong governance and high insurance coverage, providing utmost reassurance to institutional investors.

Over 2024, Tungsten, the UAE homegrown crypto custodian will scale customer acquisition, catering to a growing demand from regional institutional investors, family offices, asset managers, and high-net-worth individuals (HNWIs).

Tungsten had previously started hiring for key positions and as per their press release will continue to.

Institutional investors lead all time high in crypto volumes at CoinMENA

Institutional investors lead all time high in crypto volumes at CoinMENA

In a recent LinkedIn post, Talal Tabbaa, Co-Founder and CEO at CoinMENA, a regulated crypto broker in both UAE and Bahrain noted that the crypto exchange witnessed all-time high in crypto trading volume in February 2024.

As he stated, “CoinMENA hit an all-time high in trading volume this February, surpassing January by 80%. January itself set a record with a 64% increase from December.”

Interestingly he added that the majority of this volume came from institutions, family offices, and high net worth individuals. He adds, “The majority of this volume came from institutions, family offices, and high-net worth individuals. Retail is picking up, but nowhere near 2021 levels. Google Trends and Coinbase App Store ranking confirm similar trends. 2024 could be the biggest year in bitcoin yet because this is unprecedented in the history of finance.”

His comments on increased institutional interest is backed up by Philippe Bekhazi, CEO of XBTO global who recently told Fastcompany ME media platform that there’s a clear uptake in institutional investments in the international and UAE cryptocurrency markets, with 64% of institutions planning to increase their digital asset allocations in the next three years.

“This maturing market environment influences institutional investors by offering a diversified and technologically advanced investment landscape, enabled by the entry of specialized and regulated digital asset players in the UAE ecosystem,” says Philippe Bekhazi, CEO at XBTO Global.

Tabbaa believes that for the first time, increasing demand is meeting fixed supply. He gives example of ETFs which are alone purchasing over 11,000 BTC, while the daily issuance of Bitcoin is 900 BTC. So there is an obvious shortage.  

This is not just happening in the MENA region, rising bitcoin (BTC) prices have revived a crypto trading frenzy in South Korea, with volumes on local exchanges crossing those in the local stock market. Local media reported that trading volumes on South Korea-based crypto exchanges totalled a record 11.8 trillion won (KRW) on Sunday, or $9 billion at the going USD-KRW exchange rate. These topped Friday’s South Korean stock trading volume of 11.47 trillion won, or $8.7 billion.

CC Data noted that In February, the combined spot and derivatives trading volume on centralized exchanges rose 2.28% to $4.73tn as trading activity remains at a heightened level with Bitcoin nearing new all-time highs.

Tabbaa explains, “ETFs are buying up 12x the daily supply of bitcoin. The halving coming up in April will cut the daily issuance to 450 BTC. Bitcoin price is 9% away from an all-time high. Eventually, everyone will want access to the best-performing asset class in the world.”

He believes that given that Bitcoin price is at an all-time high, and the halving is 36 days away, increasing demand will meet decreasing supply.

With Bitcoin at $73,000 it seems he just might be right!

Customers of M2 crypto exchange can win big with token loyalty campaign

Customers of M2 crypto exchange can win big with token loyalty campaign

M2, the UAE regulated crypto exchange has launched a token loyalty reward program. By simply holding MMX tokens, users win a guaranteed share of up to 300,000 USDT. The campaign aims to reward al MMX token holder on M2 exchange.

The campaign, which runs March 8th to April 19th, offers participants the chance to win their share of a 300,000 USDT simply by holding MMX tokens in their M2 wallet.

How does it work? It is simple, hold a minimum of 200 MMX tokens in a M2 wallet to qualify for entry into the draws. The more MMX tokens held, the greater your chances of winning. Existing MMX holders are automatically eligible for the draw from the campaign’s launch date. New customers can join the campaign by purchasing 200 MMX tokens during the campaign period.

Weekly Draws Schedule:

• 15th March: 20,000 USDT draw – top prize 2,000 USDT

• 22nd March: 30,000 USDT draw – top prize 3,000 USDT

• 29th March: 40,000 USDT draw – top prize 4,000 USDT

• 5th April: 50,000 USDT draw – top prize 5,000 USDT

• 12th April: 60,000 USDT draw – top prize 6,000 USDT

• 19th April: 100,000 USDT draw – top prize 10,000 USDT

The campaign will conclude with a final draw on April 19th at the Token2049 event in Dubai, featuring a top prize of 10,000 USDT from a guaranteed prize pool of 100,000 USDT.

“Our MMX token promotion campaign underscores our commitment to rewarding our loyal community members and driving engagement within the MMX ecosystem,” said Stefan Kimmel, CEO of M2. “We’re excited to offer this exclusive opportunity to our valued MMX holders and look forward to seeing the positive impact it has on our community.”

To qualify for the MMX Loyalty Rewards, participants are required to hold their MMX tokens within an M2 wallet. All M2, MMX holders, whether existing or new, are eligible to participate in the campaign from the day of its launch subject to the exclusions specified in the Terms and Conditions. This inclusive approach ensures that all members of the MMX community have the opportunity to take part and potentially win big.

To participate in the campaign, MMX holders simply need to ensure they hold a minimum of 200 MMX tokens in their M2 wallet. Existing holders are automatically entered into the draw, while new customers can join by purchasing 200 MMX tokens during the campaign period.

This offer is from M2 Global Wealth Limited, a registered Digital Asset Business regulated and authorized by the Securities Commission of The Bahamas. It is not a product offered by M2 Limited; M2 Custody Limited, which is regulated and licensed by the Financial Services Regulatory Authority of Abu Dhabi Global Market.

Dubai regulator grants WadzPay a crypto broker license but not a payment one

Dubai regulator grants WadzPay a crypto broker license but not a payment one

The Dubai based entity of WadzPay, WPME Technology, which specializes in blockchain based technology for virtual assets has been granted a Virtual Assets Service Provider (VASP) Licence for Virtual Asset Broker-Dealer service activities, better known as crypto broker license, by Dubai’s Virtual Assets Regulatory Authority (VARA).

The crypto broker licence remains non-operational until the company fully satisfies all remaining conditions and select localisation requirements defined by VARA, following which it will be able to commence operations, subject to regulatory reverification and approval.

As per the press release, WadzPay is excited to deliver its innovative and industry-leading solutions to customers across Middle East while working closely with regulators in contributing to build a compliant and robust fintech ecosystem.

Mr. Anish Jain, Founder & CEO, WadzPay stated “This licence showcases WadzPay’s dedication in promoting innovation in the field of virtual assets domain and blockchain technology bringing us a step closer to delivering world class solutions to businesses in Middle East.”

WadzPay aims to revolutionise the way people in the Middle East transact and manage virtual assets. WadzPay’s commitment to compliance ensures that financial institutions and their customers can confidently embrace the benefits of blockchain technology while adhering to regulatory standards, ultimately contributing to the growth and sustainability of the fintech ecosystem in the Middle East.

Mr. Ram Chari, Board Member and Group Director, WadzPay quoted “This will further solidify WadzPay’s position as a trusted and reliable blockchain technology based financial service provider in the region. With the broker-dealer services, WadzPay will provide the technology to its clients to enhance the experience of their customers by enabling virtual assets transactions in a seamless and secure manner. “

To which Mr. Khaled Moharem, President – MENA & Europe at WadzPay, emphasised, “This cements our hard work and sets the stage for transformative blockchain solutions, promoting compliance and customer confidence in the Virtual Assets Industry.”

WadzPay received its initial approval for a license back in October 2023.

In 2022, KSA based Geidea, a leading fintech company in Saudi Arabia and Blockchain based payments solutions, WadzPay Middle East Technology forged a new strategic partnership to power the transformation of pilgrimage payments.

WadzPay had been strivign to obtain a Blockchain settlement and payment license from VARA in Dubai, yet this will need further framework and direction from the Central Bank of UAE.

UAE regulated digital assets custodian Tungsten now hiring

UAE regulated digital assets custodian Tungsten now hiring

UAE organically incubated, digital assets custodian, Tungsten, regulated under the FSRA (Financial Services Regulatory Authority) in ADGM is on a hiring spree.

Tungsten, according to Further Ventures, UAE Venture Capital firm, and its incubator, is a 100% UAE sovereign digital asset custodian that offers secure and regulated custody service.  It is also backed by an Abu Dhabi Sovereign Wealth fund.

As per Tungsten, “ We are on a mission to create the most advanced digital assets custody and treasury services for our clients, helping them to become self-sovereign organizations with strong mechanisms for access control, multi-tier and multi-factor authentication, no single points of failure, and advanced transactional risk management.”

Tungsten goes on to note, “Our offering will be insured by global underwriters, regulated exclusively by ADGM (Abu Dhabi Global Markets), and host its core services in a Tier IV data center with 24/7 physical security.”

Tungsten is custodian of virtual assets that protects client funds from geo-political, regulatory, and cloud risk by operating a fully private physical and application infrastructure out of the most secure facilities in the world.

The website states that Tungsten goes beyond custody, their integrations span exchanges, liquidity providers, analytics, tokenization, and more, providing a holistic solution.

The company is founded by Christian Desjardins, Co-Founder and CEO , as well as Jose J. Perez Aguinaga as the Co-Founder and CTO.

Tungsten is currently hiring an assistant Manager-Deputy MLRO.

In the advert for the position it states that Tungsten, backed by an Abu Dhabi Sovereign Wealth Fund has expansion plans across the Middle East and Eastern Europe.

The job advert notes, “We aim to redefine the landscape of secure, user-friendly virtual asset custody solutions. Our commitment is to unparalleled security, reliability, and ease of use, positioning Tungsten as the preferred choice for institutions managing their virtual assets.”

Tungsten is looking for Assistant Manager – Deputy MLRO, to support the Money Laundering Reporting Officer (MLRO) in implementing and managing their anti-money laundering (AML) and counter-terrorist financing (CTF) framework.

This comes as more and more Blockchain and digital asset entities launch from ADGM in UAE.

This article was updated on Feb 27th 2024. Update concerned founding members.

MintLayer to tokenize realestate assets in UAE

MintLayer to tokenize realestate assets in UAE

UAE based MintLayer, a layer 2 blockchain that utilizes Dynamic Slot Allocation (DSA) consensus merging Proof-Of-Stake and Bitcoin technologies to make decentralized financial markets attack-proof,  will be launching its mainnet on January 29th 2024 and is planning tokenize real-estate assets starting from Dubai UAE.

Already MintLayer has received investments from a substantial number of venture capitalists including some residing in the UAE such as Phoenix crypto VC, Sheesha Finance, Varys Capital and others.

Zaid Ismail Chief Operations officer at MintLayer, based out of Dubai UAE, on LinkedIn states,“ 90% of the world’s millionaires made their fortunes through real estate, but it’s highly inaccessible, illiquid, and complicated – that’s where MintLayer comes in! Starting with Dubai, we are on a mission to fractionalize real estate ownership one country at a time.”

In an interview on Bitcoin News, he discussed how tokenized real-world assets are an appealing portfolio for modern investors.

He told Bitcoin News that despite recently garnering much of the world’s attention, traditional exchange-traded funds (ETFs), including spot Bitcoin ETFs, are still inferior to tokenized real-world assets (RWA).

He added,” Tokenized RWAs also come with increased transparency, reduced costs, and direct ownership making them a more versatile and appealing choice for modern investors seeking portfolio diversification.”

He notes in the interview that traditional finance institutions are also starting to get involved in tokenized RWAs. They are testing the waters and will need to work with regulators to adapt existing regulations to the changing landscape.

Ismail emphasizes that with MintLayer the process is simplified, reducing hassles for asset owners. With MintLayer, tokenization is embedded and simple, so non-technical users can issue tokens easily without having to use deployment contracts like on Ethereum.

Additionally, Mintlayer Institutional is building a SaaS platform for institutional clients that will help to simplify the process of issuing, monitoring and dealing with all the compliance aspects required for tokenization.

The MintLayer network, and its UTXO infrastructure, allows batching multiple transactions into a single one, saving space and lowering the fees. Furthermore, their HTLC smart contract embedded in MintLayer will allow atomic swaps and lightning network integration, allowing a way to route transactions on a peer-to-peer network that doesn’t require it to be permanently saved forever on the blockchain.

Mintlayer has a  low node requirements are pivotal in fostering a more inclusive and decentralized network allowing anyone with a standard PC, or even a Raspberry Pi, can run a node is a testament to the democratization of blockchain technology.