cryptocurrency regulation could be out in months in Saudi Arabia

cryptocurrency regulation could be out in months in Saudi Arabia

According to a recent interview by Zawya, with, Bandar AlTunisi, Head of Development at Binance in Saudi Arabia, high level digital currency regulation could come out in Saudi Arabia tomorrow or in a month’s time.

He states, “With discussions on cryptocurrency ongoing at several Saudi government bodies, Saudi Arabia, is looking forward to possible “high-level” regulation for digital currencies in the country this year.”

AlTunisi said there had been growth over the past seven years.  “It could be tomorrow, it could be in a month’s time, but once they’re ready, they will move quickly, which is what excites us about the Saudi market. I am hopeful about this year, but it is dependent on a lot of different factors,” he said.

Bader Al Kalooti, Head of Binance Middle East, Africa and Southern Asia (MEASA) and Turkey, said: “It is still very early. Relatively speaking, this is a nascent industry. The way these things tend to work, you will have disruptive technology roll out, then it takes a while to demonstrate that there is a product market fit, that people want this technology, then the regulations catch up.”

Dubai and Bahrain were early movers, he said, and other markets will catch up, although it will not happen overnight.

Bodies involved in studying potential crypto regulation include the Saudi Central Bank (SAMA), the Ministry of Communications and Information Technology (MCIT), which will be involved from a blockchain point of view, and the Capital Markets Authority (CMA).

Saudi Arabia also launched the Financial Sector Development Programme in 2018, under which the development of cryptocurrency regulation could also fall.

The creation of such regulation would be followed by a period of understanding how the regulations will be applied, AlTunisi said. Saudi is a priority market for crypto in general as well as Binance, he said.

“There is no other major exchange that has boots on the ground in Saudi in the way Binance does,” he adds, “Saudi is one of those places where once they move, they move big/. We really anticipate that there is going to be movement soon, and once they do, it is going to be a huge catalyst for growth in the industry.”

LaraontheBlock spoke withNaquib Mohammed, Founder and CEO of MRHB Network, who recently started operations in KSA, explained, ” We have been in meeting with stakeholders from SAMA ( Saudi Central Bank) on a regular basis. SAMA is working on regulations, but there is nothing happening anytime this year.”

MENA is home to three of the top 30 countries receiving crypto in Chainalysis index: Turkey (12), Morocco (20), and Iran (28). However, Turkey dominates in terms of raw transaction volume, but interestingly Saudi Arabia comes in third in terms of crypto value received, with UAE coming in at number two and Turkey taking number one place.

UAE blockchain hydroponic farm expands into KSA after raising $2.25 million

UAE blockchain hydroponic farm expands into KSA after raising $2.25 million

Crysp Farms, a UAE based innovator and operator of decentralized blockchain enabled vertical farms, has secured a $2.25 million ‘Pre-Series A’ round structured and led by Gate Capital with participation from regional investors, including those from the UAE and Saudi Arabia.

The homegrown ‘Farming as a Service’ provider builds and operates bespoke onsite hydroponic farms catering to hospitality groups, healthcare facilities, restaurants, and hypermarkets. Notably, its high-quality produce is served in venues recognized by the leading awards and guides, such as Gault & Millau and Michelin.

The funding round will focus on scaling the company’s expansion strategy across the region and delivering committed contracts internationally.

Crysp Farms,is  the only Blockchain enabled hyperlocal farming provider in the region. Each farm provides continuous access to onsite fresh produce and reduces greenhouse gas emissions, supporting the outcomes of COP28. According to the Food and Agriculture Organization of the United Nations (FAO), between 30 and 40% of total food production is lost before it even reaches the consumer. Through Crysp Farms, there is close to zero spoilage.

With the current funding round, Crysp Farms will continue its strategic expansion, introducing new farms in prestigious hotels and resorts managed by global leaders like Hilton Worldwide, Jumeirah Group, and Marriott International, among others.

 In the last month, Blockchain enabled Crysp Farms partnered with five new properties, bringing its sustainable farms to more than 20 locations across the UAE, with many more in the pipeline across regional and international destinations, including the Seychelles and Maldives.

As per the press release, the business will target expansion into the Kingdom of Saudi Arabia, enabling and enhancing local food production through innovative technology, in line with Saudi Vision 2030. The business aims to support the hospitality and healthcare sectors across major cities and new development projects in the Kingdom.

Speaking about the investment round, Maan Said, CEO and founder of Crysp Farms, said, “This financial and strategic investment opens up opportunities and enables the business to scale exponentially across our target markets. Through our partner relationships, we are eager to create a more sustainable world through hyperlocal farming. We are proud to receive the support of Gate Capital and other leading investors in this round, as we look forward to sustainably scaling our operations.”

Munther Hilal, Chief Executive and Founder of Gate Capital, said, “Crysp Farms has grown from an innovative idea to disrupt agriculture into a tangible green investment opportunity, with sturdy unit economics and a strong foundation paving the way for scalable growth. Gate Capital’s continuous commitment to ESG-led businesses is a testament to identifying impact investment opportunities.”

KSA Bank to patent Blockchain system for CBDCs

KSA Bank to patent Blockchain system for CBDCs

The Saudi Islamic Development Bank Institute (IsDBI) is working to patent a Blockchain system for smart stabilization for CBDCs and digital assets after receiving a positive evaluation for its Blockchain smart stabilization system patent. The World Intellectual Property Organization (WIPO) is looking into the patentability of the system.

WIPO has acknowledged the Stabilization System as a novel, inventive, and industrially applicable solution. WIPO also noted its significant potential for international patent recognition.

The Blockchain smart stabilization system will work to enhance the stability of organized asset markets without compromising efficiency. The system will effectively manage the gap between supply and demand to mitigate price volatility while upholding the market-equilibrating role of this gap.

As such Dr. Sami Al-Suwailem, Acting Director General of IsDBI, expressed his appreciation towards the team’s dedication and hard work, stating, “This recognition from WIPO not only validates our commitment to innovation but also positions IsDBI at the forefront of bolstering the financial stability of the digital and crypto-based economy.”

The Blockchain system for smart stabalization will be utilized in financial assets, digital currencies ad CBDCs using Blockchain technology.

The Blockchain system is self-financed, with no need for substantial capital to achieve its objectives. A prototype is under way after IsDBI signed an agreement with Settlemint. Saudi IsDBI bank started working on this project with Blockchain solution provider Settlemint in May 2023.

SBI Japan moves across GCC with digital asset ventures reaching Saudi Arabia with Aramco

SBI Japan moves across GCC with digital asset ventures reaching Saudi Arabia with Aramco

The big news in the region is the recent announcement by SBI Holdings that it has entered into a Memorandum of Understanding with Saudi Arabian Aramco, one of the leading energy and Chemicals Company, after SBI Holding established a digital asset venture in UAE with Standard Chartered.

The signing was between SBI Holding, Chairman, President and CEO, Yoshitaka Kitao; and Aramco’s President and Chief Executive Officer: Amin H. Nasser.

As per the press release, based on the MOU, SBI Holdings and Aramco will consider a business alliance in the areas of collaboration in the field of digital assets and co-investments leveraging both parties’ investment portfolios related to digital assets, as well as identifying Japanese startups in the digital asset field which have interests in expanding their business in Saudi Arabia and supporting their entry and growth.

It also includes launching various specific projects related to investments in the semiconductor field, including establishment of factories in both Japan and Saudi Arabia.

The scope of the alliance may be expanded upon agreement between the Company and Aramco.

SBI Holdings has been promoting the establishment of investment funds with local partners in the Middle East, as well as the construction of semiconductor factories in Japan, through a partnership with Powerchip Semiconductor Manufacturing Corporation. SBI Holdings recently announced a partnership with Standard Chartered to launch a $100 million Fund in the UAE to also establish a digital asset joint venture.

Through this partnership with Aramco, the parties will, together, leverage their mutual knowledge and resources to discuss further business opportunities in advanced technology fields, such as semiconductors, digital assets, etc. and contribute to economic cooperation between Japan and Saudi Arabia.

Furthermore, the SBI Group plans to establish “SBI Middle East” in Riyadh as a base of operations for conducting business in the Middle East, and is working towards further expanding its businesses in the region.

Saudi Aramco has made prior investments into Blockchain startups, including Data Gumbo, IR4Labs, VAKT, and others.

While Sanabil, the $3 billion fund owned by the government’s Public Investment Fund, is an indirect crypto investor. It mainly invests in other funds, with half its assets in venture capital (VC). They include commitments to crypto-focused Haun and Blockchain Capital as well as several other VCs with major crypto portfolios such as Andreessen Horowitz, Coatue and Tiger Global.

However this news on SBI Holding agreement with Aramco and its relation to the semi conductor business is significant given that recently USA forced Saudi backed fund Prosperity7 from investing in Sam Altman’s AI startup Open AI.  Prosperity7 has already invested as well in Blockchain, with Red Date Tech.

The Saudi NEOM Food Company Topian to utilize blockchain technology

The Saudi NEOM Food Company Topian to utilize blockchain technology

Saudi Arabian NEOM, the development taking shape in Northwestern Saudi Arabia announced the launched of Topian, the NEOM Food Company which will utilize blockchain technology.

As per the press release, Topian seeks to redefine food production, distribution, and consumption through the creation of sustainable and innovative food solutions across five vertical pillars: climate-proof agriculture; regenerative aquaculture; novel foods; personalized nutrition; sustainable food supply and ESG.

Topian has been launched with the support of the Saudi Ministry of Environment, Water and Agriculture (MEWA). It is fully aligned with the KSA’s goal of achieving Saudi Vision 2030, spearheading the Kingdom’s efforts to ensure food security, mitigate climate change and achieve net-zero emissions by 2060.

Topian aims to perfect the ‘Art of More with Less’, embracing a ‘new era of food’ to achieve food security. Topian’s launch concept, ‘Future to Table’, will introduce and apply innovative solutions and initiatives that will revolutionize the current global food system and tackle issues arising from rapid population growth, changing consumption patterns, climate change, and the depletion of our natural resources.

Nadhmi Al-Nasr, CEO of NEOM, stated “NEOM is an accelerator of human progress and Topian reflects our dedication to creating a positive, long-lasting transformation to lives in Saudi Arabia and the rest of the world. Topian’s innovative approach will be a key driver in shaping the future landscape of a sustainable and secure food industry. We look forward to working closely with investors, partners, and food industry experts in turning ambitious ideas into reality, supporting economic diversification in the Kingdom and aligned with Saudi Vision 2030.”

Dr. Juan Carlos Motamayor, Chief Executive Officer of Topian, added “As a wholly-owned subsidiary of NEOM, Topian is fully aligned with NEOM’s commitment to providing high-quality food products to the market, and promoting food security and sustainability, while contributing to the Kingdom’s self-sufficiency objectives and long-term economic goals. Topian is leading the food-security conversation to create a resilient food supply in line with the Saudi Green Initiative and the United Nations Sustainability Development Goals. We are not only committing to shaping a transformative global food system, but also to setting a global benchmark by pioneering new technologies and innovative solutions to overcome food-related challenges and create a more secure, sustainable, and prosperous future for all.”

Answering LaraontheBlock on whether Topian will utilize Blockchain technology, CEO Motamayor replied that yes it will.

Topian has signed agreements, with entities such as King Abdullah University of Science and Technology (KAUST), Tabuk University, as well as Tabuk Fish Company, BlueNalu, Van der Hoeven Horticultural Projects, and Cargill, to collaborate on research-and-development initiatives, and harness partners’ expertise to develop innovative and sustainable approaches to food production.

UAE to apply IMF New draft methodology for virtual assets

UAE to apply IMF New draft methodology for virtual assets

IMF discussed its new draft methodology for the supervision of virtual assets during a recent fintech roundtable organized by the International Monetary Fund (IMF) staff, in collaboration with the UAE Executive Office of Anti-Money Laundering and Counter Terrorism Financing. Interestingly the methodology project was financed by a number of countries including Qatar and Saudi Arabia.

In attendance were participants from 15 countries including Bahrain and Saudi Arabia.

Hamid Al Zaabi, Director-General of the EO AMLCTF, stated, “The UAE continues to raise the effectiveness of its regulatory framework for VAs and VASPs to attract innovative firms and keep out illicit actors seeking to exploit the global financial system. We are delighted to partner with the IMF team to give supervisory authorities across the world the opportunity to strengthen international cooperation and be part of the design process of an important new methodology for VA/VASP supervision”.

Chady El Khoury, Deputy-Division Chief of the Financial Integrity Group within the Legal Department at the IMF, noted the broad consensus among participants on the need for urgent actions to mitigate the potentially significant ML/TF risks emerging from VA and VASPs.

He explained, “It is critically important that countries carry out robust AML/CFT risk-based supervision of VASPs, and that assessing the associated ML/TF risks is the starting point of an effective AML/CFT supervisory regime.”

Participants at the workshop identified a range of issues, including a lack of capacity and resources for supervisory agencies and data collection/analysis gaps. They agreed on the need for strong collaboration among AML/CFT supervisory agencies and upgrading existing ML/TF supervisory risk assessment models to accurately assess VA and VASPs.

In the absence of a clear solution to deal with data collection and related gaps, supervisors may need to rely on models that are more tuned into the inherent risks that VASPs pose with the decision on whether to incorporate data (e.g., transaction level analysis on VA flows) on a case-by-case basis. Finally, a more connected and active community for collaboration between AML/CFT VA and VASP supervisors would help countries to better understand and address cross-border ML/TF risks.

Over the coming months, IMF staff will follow up with participants and incorporate feedback on the methodology. Once finalised, the methodology will form part of the Legal Department of the IMF’s CD toolkit that the organisation will start providing to countries by mid-year 2025.

The methodology was developed under a project that is financed by a donor-supported Canada, France, Germany, Japan, Korea, Luxembourg, the Netherlands, Qatar, Saudi Arabia and Switzerland trust fund to finance CD in AML/CFT at the IMF with excellent support from the UAE to host the event.

Saudi, Russia, and Iran to deal in Bitcoin and Qatar to pull trigger with Bitcoin buy

Saudi, Russia, and Iran to deal in Bitcoin and Qatar to pull trigger with Bitcoin buy

Russia, Saudi Arabia and Iran to start doing deals in Bitcoin, this is a statement made on X by no other than Max Keiser, the well-known Bitcoin influencer and the host of Keiser report, who is as well senior Bitcoin advisor to Nayib Bukele, the President of El Salvador.

As per Keiser’s statement, on X, “Russia, KSA, Iran will start doing deals in Bitcoin. Qatar knows this and is pulling the trigger on a huge BTC buy for their SWF (Sovereign Wealth Fund).”

This comes just days after Keiser stated that the Qatar sovereign Fund would be buying $500 billion of Bitcoin. Keiser had stated on X, “I have 1 word for you $100,000 Bitcoin God Candle fans. QATAR, the rumors are getting very loud on this. Their SWF (Sovereign Wealth Fund) rumored to looking to buy 1/2 trillion BTC (Bitcoin).”

Months prior to this Qatar was touted as discussing Bitcoin mining during the visit of HH Prince Sheikh Tamim bin Hamad Al-Thani of Qatar to El Salvador but nothing materialized on that front yet.

Keiser is a longtime Bitcoin advocate and educator, having advised people to buy Bitcoin since the price was $1.

With his statements Keiser seems to imply that the top GCC countries, Iran, and Russia plans to break away from the U.S. dollar and gravitate towards Bitcoin for trade.

Some would say that given that the Qatar Investment Authority founded in 2005 in October 2023, had an estimated $475 billion of assets under management would they use all that to buy Bitcoin? Qatar has not even legalized the trade of cryptocurrencies and neither has Saudi Arabia, Iran, or Russia.

In January 2023, Qatar Investment Authority CEO Mansoor Ebrahim Al-Mahmoud told Bloomberg that they would be interested in the credit space, and AI (Artificial Intelligence) as a theme of investments. In 2022 the CEO of Qatar Sovereign Wealth Fund showed interest in investing in Blockchain but shunned crypto.

Could the strained relationships with the United States be pushing forward this movement towards de-dollarization in the form of utilization of Bitcoin?

Another interesting analysis could be that Qatar is actually interested in Bitcoin mining in El Salvador.  El Salvador was noted as entering a public private partnership worth $1billion to create the world’s largest Bitcoin mining farm. Volcano Energy has developed the first mining pool in El Salvador with Luxor Technology.

This according to Volcano Energy is a $1 billion Bitcoin mining project set to transform El Salvador through the development and operation of renewable energy plants. Could Qatar one of the most experienced and highly invested renewable energy country be interested in this project? Maybe just maybe yes!

Blockchain Agritech company Dimitra working with Saudi Arabia to develop Coffee business

Blockchain Agritech company Dimitra working with Saudi Arabia to develop Coffee business

Blockchain Agritech company, Dimitra, is working with Saudi Sustainable Union Trading company (SUT), an organization that develops innovative agriculture solution to establish a program for Jazan Coffee producers with Connected Coffee Platform for 700 farms.

Dimitra and SUT aim to promote the coffee industry within the country. By assisting in developing coffee farms in the Jazan region of Saudi Arabia, these farmers can further capitalize on their unique coffee heritage in Saudi Arabia.

The Jazan Coffee Cooperative (CCJ), a leading agricultural development institution and national expertise house in the agriculture sector, is using Dimitra’s Connected Coffee platform. The tailored Blockhain enabled platform provides straightforward, actionable insights to increase the quality and quantity of coffee yields, all sustainably and with longevity in mind. The platform also offers real-time track and trace capability throughout all levels of the supply chain, ensuring farmers’ produce is transparent and credible.

The project’s initial phase starts with 200 farms in 2023 and will reach 350 by the end of 2024. The project’s full scope is to implement the Dimitra Connected Coffee platform for 700 farms in 6 coffee provinces in the Jazan region that cultivate Arabica and Khawlani coffee beans.

Specifically, Dimitra’s Connected Coffee platform will help the farmers establish quality control measures. It will also assist with monitoring and maintaining the quality of coffee produced. Moreover, it will also encourage farmers to adhere to international quality standards. The app will also motivate farmers to consider obtaining certifications such as organic to enhance marketability.

Maged Elmontaser, Dimitra’s MENA regional Director, says, “The Jazan province is packed full of advantages. The six mountainous governorates have many investment opportunities, especially in agriculture and heritage sites. Exploring opportunities to integrate coffee farms into the Dimitra Connected Coffee platform will transform the coffee industry. In addition, it will revolutionize the history, cultivation, and brewing of Saudi Arabian coffee. They are leveraging knowledge exchange, access to markets, and improving the overall competitiveness of Saudi Arabian coffee”.

Qatar Investment company invests $15 million in Layer1 Blockchain platform QAN

Qatar Investment company invests $15 million in Layer1 Blockchain platform QAN

UK QANplatform, the quantum-resistant Layer 1 blockchain, receives $15 million investment from Qatar investment company MBK Holding. In September 2023, MBK holding publicly expressed their support for QANplatform.

The QANplatform unveiled its private blockchain on September 12th 2023. The platform which is both quantum resistant and compatible with Ethereum’s EVM received support from Qatar ruling family member H.E. Sheikh Mansoor Bin Khalifa Al Thani.  In a privately held partner event prior to the public launch of QANplatform, H.E. Sheikh Mansoor Bin Khalifa Al-Thani, Member of the Qatari Ruling Family, Chairman of MBK Holding, and former ICT Director for The Council of The Qatar Ruling Family Affairs stated, “We always evolve but not everyone leads the way. I’m proud to support the introduction of a cutting-edge deep tech project, such as QANplatform, in the Gulf region and on the global market.”

Today MBK holding has gone a step further and announced their $15 million investment in QANplatform days before the launch of its testnet.

MBK Holding, an investment holding company with its main office in Qatar and a subsidiary in the United Kingdom, focuses on investing in technology startups. The Founder and Chairman, H.E. Sheikh Mansoor Bin Khalifa Al-Thani, member of the Qatari ruling family, formerly served for a decade as the director of information technology for The Council of The Qatar Ruling Family Affairs.

In addition MBK Holding will offer growth services to facilitate global market access and expansion for QANplatform. MBK Holding’s focus extends to various regional markets, including Qatar, Saudi Arabia, United Arab Emirates, Turkey, and United Kingdom while also encompassing other global opportunities.

H.E. Sheikh Mansoor Bin Khalifa Al-Thani, Founder and Chairman of MBK Holding commented, “MBK Holding proudly backs QANplatform, the game-changing quantum-resistant blockchain platform and nominates Johann Polecsak as the Director of Blockchain of MBK Holding. Blockchain technology in general, is still an untapped area with many opportunities and potential to transform entire value chains, sectors, and business processes. As a deep tech startup, QANplatform can lead the next wave of blockchain platforms with its remarkable features, including multi-language smart contracts and quantum-resistant security. QANplatform is a great fit for our portfolio and partner companies to discover and benefit from the potential of its technology.”

Johann Polecsak, Co-Founder and CTO of QANplatform added, “Working alongside MBK Holding and their team is truly an honor. QANplatform is driven by the vision of creating the safest and most user-friendly blockchain platform, enabling the development of numerous real-world robust applications that bring tangible value to various industries.”

MBK Holding recently signed a strategic partnership with the Ministry of Investment of Saudi Arabia to support entrepreneurial growth and innovation in Saudi Arabia by developing growth services that seek to create market-leading investment opportunities.

QANplatform will be the first EVM-compatible, quantum-resistant Layer 1 hybrid blockchain platform where developers can code smart contract, DApp, DeFi, DAO, token, NFT, Metaverse, CBDC, tokenized asset, and robust Web3 solutions on top of the QAN blockchain platform in any programming language.

As a hybrid blockchain, QANplatform will have a private and public blockchain as well. In September 2023, QANplatform marked a new era of Web3 OS (Operating System) with the launch of the QAN Private Blockchain. QANplatform has unveiled the world’s first private blockchain that is both quantum-resistant (using NIST primary recommended post-quantum algorithm), and compatible with Ethereum’s EVM, while also enabling developers to code smart contracts in any programming language.

QANplatform’s ecosystem is building up with renowned companies such as Hacken, Beosin, or Alpine Esports. In February 2023, Alpine Esports, a Group Renault brand, and inter alia in the Formula 1® Esports Series signed QANplatform as its Official Blockchain Partner. In September 2023, QANplatform was selected to the Ernst & Young Startup Program as one of the nine selected promising startups in the technology and finance sectors, chosen from among hundreds of applicants globally.

This announcement comes as Qatar enters the blockchain era, with the launch of its digital assets lab, as well as partnerships with R3, Settlemint and others.

Blockchain Company IR4LAB secures Gold Classification from Saudi Digital Government Authority

Blockchain Company IR4LAB secures Gold Classification from Saudi Digital Government Authority

Saudi Arabian based IR4LAB, a blockchain and AI tech provider during  the Web3 Summit in Lisbon held from November 13 to 16, 2023, showcased its cutting-edge solutions and announced its  gold classification by the Digital Government Authority (DGA) in Saudi Arabia which will position IR4LAB as a key player offering solutions to Saudi government initiatives.

The Web3 Summit, with a record-breaking 70,236 attendees from 183 countries, marked a momentous occasion for IR4LAB. Under the auspices of the Ministry of Communications and Information Technology (Saudi Arabia), the company’s recognition by the DGA underscores its commitment to advancing digital government initiatives and forging impactful collaborations.

IR4LAB’s gold classification, awarded as part of the Digital Government Cluster program, positions the company as a key player in bridging the gap between local and international ICT companies and government agencies. This recognition has further propelled IR4LAB into the elite program initiated by DGA, where it stands as the exclusive Blockchain company among the 18 chosen companies in Saudi Arabia.

The DGA’s elite program has set ambitious objectives:

  1. Shorten the gap between supply and demand for the digital government.
  2. Support SME development and increase SME participation in digital government opportunities.
  3. Facilitate private sector investments in ICT’s most promising companies and startups.

Majd AL AFIFI, Co-Founder and CEO of IR4LAB, expressed his excitement, stating, “The gold classification from the Digital Government Authority is a testament to our dedication to innovation and collaboration. We are proud to be recognized as a driving force in shaping the future of digital government in the Kingdom of Saudi Arabia and beyond.”

Mohamed EL KANDRI, Co-Founder and CTO of IR4LAB, added, “Being the only Blockchain company selected for the DGA’s elite program is a significant milestone and a recognition to our technical excellence we have built throughout the year. We are eager to contribute to the program’s objectives and establish enduring partnerships with government entities and top-tier SMEs, positioning IR4LAB as a Blockchain provider of choice for digital government initiatives.”

IR4LAB in 2023 expanded its operations to Africa.