Digital assets hedge fund with capital of $30 million sets up global headquarters in UAE

Digital assets hedge fund with capital of $30 million sets up global headquarters in UAE


backed by $30 million in capital. Triton Liquid a digital assets hedge fund, with its global headquarters in Abu Dhabi and has received an In-Principal Approval for an FSP, from the Financial Services Regulators (FSRA) of Abu Dhabi Global Market (ADGM).

As per ADGM press release, the launch will provide a best-in-class, tailored platform for Middle Eastern investors seeking to capitalize on the growth of blockchain technology and cryptocurrency adoption.

Seeded with $30M from Tier 1 VC, FJ Labs, Triton Liquid is backed by New York-based FJ Labs which has previously invested in Alibaba, Stripe, Revolut, Klarna and financial wellness company ABHI.

As the UAE emerges as a globally recognized centre for digital assets innovation and demand for tokens grows, Triton Liquid is poised to provide investors with access to token liquidity, rigorous data-driven digital assets analysis, and robust portfolio diversification.

Founded by MIT and Princeton alumni, Triton Liquid’s methodology combines fundamental venture capital (VC) principles with deep proprietary data analysis to invest in liquid tokens across the entire digital asset landscape. The result is a portfolio that generates venture-like returns with public markets’ liquidity.

Their investment edge is that they have built proprietary dashboards over the past two years that track relevant metrics across 24 digital asset verticals and combine it with ⁠VC-style due diligence with 20+ page deal memos for each project. Unlike traditional venture and equity investment models, where performance projects are based on retrospective quarterly or half-yearly earnings, Triton Liquid tracks live, open-source data, generating real-time insights and forecasts, equipping investors with far greater oversight and transparency.

This strategy was developed by their digital assets-native team that has built crypto products, decentralized exchanges, and digital asset hedge funds prior, where the fund partner has invested across three crypto investment cycles.

As of March 2024, Triton realized a 108% return since inception, after increasing their market exposure from 20% to 100% since November 2023.

Fabrice Grinda, Founder Partner at FJ Labs, comments; “Digital assets is the ultimate network effect business and a perfect complement to our core efforts. We believe that Triton’s proprietary evaluation process will offer venture-style returns in this emerging asset class, and we are delighted to be part of the Triton story in ADGM’s burgeoning digital assets ecosystem.”

Chris Keshian, Founder and CIO of Triton Liquid – and formerly FJ Labs’ Head of Liquid Digital Assets – is the architect of the fund and its liquid token strategy. Based in Abu Dhabi, Chris will be responsible for building and scaling operations in the region and driving the overall growth of the business.

Chris a true digital asset native, has been an active investor and trader in the cryptocurrency space since 2013. In 2014, he co-founded the first fiat gateway onto Ethereum, showcasing his acute understanding of emerging blockchain technologies. Building on this success, Chris further established a long/short cryptocurrency-focused hedge fund in San Francisco in 2016. Today, he is bringing his extensive experience to Abu Dhabi’s thriving digital assets ecosystem

Chris Keshian, Founder and Chief Investment Officer at Triton Liquid says: “The liquid digital assets market has evolved rapidly over the last ten years, and now sits at the cross-section of venture investing and public equity investing. Most projects are early stages but have an actively traded token that represents ownership or value accrual for the company. As such, through applying a venture style research process with a public equity style data due diligence and rebalancing process, we have created a strategy which we believe provides the best exposure to the growth and liquidity of this asset class.”

“The UAE is undoubtedly becoming the global hub for digital assets and the broader DeFi industry,” Chris adds. “The fintech ecosystem in the UAE is more vibrant than ever, and we look forward to playing an active role in its continued evolution. The UAE’s visionary leadership, financial services pedigree and constant drive for fintech innovation make this market a perfect fit for us. Our launch today marks a major milestone for our company and a crucial inflection point in our growth journey, one which we are delighted to share with our partners at ADGM.”

In an interview with Zawya, Keshian stated, “We invest in projects on a category basis. I assess 12 projects that are all competing and trying to do the same thing, then I would decide which of these will win and invest accordingly.” Investments so far include Synthetix – a derivatives liquidity protocol for derivatives trading in decentralized finance – and blockchain platform Solana.

He concludes when asked why he chose UAE, “It will be one of the three jurisdictions along with Hong Kong and Singapore that capture the lion’s share of entrepreneurs and people and funds who want this to see this become a real asset class,” Keshian said.

XBTO for digital assets investments sets up in ADGM UAE

XBTO for digital assets investments sets up in ADGM UAE

XBTO a platform for digital assets and tailored crypto investment solutions, has been selected to join Abu Dhabi’s Hub71 Digital assets, Web3 ecosystem as it seeks regulatory license from ADGM ( Abu Dhabi Global Market) FSRA authority XBTO has also appointed former Mubadala executive, Karl Naïm as General Manager of XBTO.

Karl, is a seasoned serial technology startup entrepreneur and former positions at Mubadala, UBS, and Goldman Sachs, will lead XBTO’s strategic expansion in the Middle East. 

XBTO has established a new office in ADGM which will provide a suite of digital assets products, solutions, and investment management strategies to institutional and qualified clients within the region.

Prior to joining XBTO, Karl co-founded Hub71 startup, Purpl, a digital wallet and remittance aggregator for Lebanon, and served as its CEO until November 2023. He was recognized by MEA Markets as the “Most Transformational Financial Inclusion CEO 2023” in the Middle East.

Commenting on the Hub71 selection and Abu Dhabi expansion, Philippe Bekhazi, Founder & CEO of XBTO, said, “We are excited to be selected by Hub71, Abu Dhabi’s global tech ecosystem, and to welcome Karl Naïm to our team. His expertise positions us strongly for our expansion in the Middle East. Our new Abu Dhabi office will enable us to bridge traditional finance and digital assets, reflecting XBTO’s commitment to innovation in this space.”

Peter Abou Hachem, Head of Growth and Strategy, Hub71, added, “The addition of XBTO to Hub71+ Digital Assets is a reflection of the founding team’s strong leadership, robust business model and its commitment to transforming the digital asset landscape from Abu Dhabi. As we continue attracting the most promising startups to our specialist ecosystems, we remain focused on our mission to transform the UAE capital into a world leading tech hub for Web3 and digital assets. XBTO is poised to unlock the immense potential of being part of an ecosystem, propelling Abu Dhabi to the forefront of innovation not only in the UAE but globally.”

Karl noted, “I am excited to introduce XBTO’s unparalleled expertise in digital assets to institutions and family offices in the region. My focus will be on building a high-performing team and collaborating closely with the Financial Services Regulatory Authority, positioning XBTO as the provider of choice for all digital asset-related services in the region.”

DEWA uses cutting edge tech including blockchain for sustainable energy solutions

DEWA uses cutting edge tech including blockchain for sustainable energy solutions

UAE based Dubai Electricity and Water Authority (DEWA) announced that it is utilizing cutting edge technologies including blockchain to develop innovative and sustainable energy solutions to provide its electricity services according to the highest standards of availability, reliability, sustainability, and quality. This is supported by an advanced infrastructure for managing facilities and services through smart and integrated systems, utilising cutting-edge technologies such as the smart grid, artificial intelligence (AI), Space-D programme, blockchain, energy storage and integration of its sources, Internet of Things (IoT), and 3D printing, among others.

HE Saeed Mohammed Al Tayer, MD & CEO of DEWA, emphasised DEWA’s ongoing efforts and commitment to global sustainability goals, leadership in digital transformation, and spearheading clean and renewable energy projects and initiatives. These efforts are aligned with the vision of the wise leadership to enhance effective adaptation to future developments and address challenges securely and sustainably across all areas. DEWA’s preparedness reflects its strategy and unwavering efforts to achieve its vision of being a globally leading sustainable and innovative corporation committed to achieving Net-Zero by 2050.

Energy production and storage projects:

DEWA relies on pioneering initiatives and projects to diversify clean energy production sources. This includes clean and renewable energy technologies such as photovoltaic panel technology, concentrated solar energy, and green hydrogen production using solar energy, along with projects and initiatives to increase energy efficiency.

DEWA is also developing energy storage technologies through several pioneering projects, including the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park, which will have the largest energy storage capacity in the world of 15 hours, allowing for energy availability around the clock, and the pumped-storage hydroelectric power plant in Hatta.

Smart grid:

DEWA aims to enhance its leadership in innovation, sustainability, and future shaping across all its projects and initiatives, focusing on Fourth Industrial Revolution technologies and digital transformation. To achieve this goal, DEWA has developed a comprehensive strategy to implement a smart water and electricity infrastructure, known as the Smart Grid. This intelligent grid incorporates advanced features such as automated decision-making and interoperability throughout the electricity and water network.

Among the programmes launched by DEWA under the umbrella of the smart grid is an Automatic Smart Grid Restoration System (ASGR), the first of its kind in the MENA region, to increase the control, management, and monitoring of its power network. The system works around the clock without any human intervention. It uses a smart, innovative, and central system that locates the fault in the power network, isolates it, and automatically restores the service.

Smart meters

Smart meters serve as the backbone of the smart grid and play a pivotal role in driving digital transformation. They enhance operational efficiency and mitigate losses. In Dubai, all active traditional meters for electricity and water have been upgraded to smart meters. These smart meters offer numerous benefits, enabling customers to proactively and digitally manage their consumption without the need to contact DEWA. The Smart Meters Analysis and Diagnosis Centre remotely monitors the smart meters every 15 minutes. As of the end of 2023, the number of smart meters in Dubai reached 2.2 million.

Automatic Smart Grid Restoration System (ASGR):

Among the programmes launched by DEWA under the umbrella of the smart grid is an Automatic Smart Grid Restoration System (ASGR), the first of its kind in the Middle East and North Africa, to increase the control, management, and monitoring of its power network. The system works around the clock without any human intervention. It uses a smart, innovative, and central system that locates the fault in the power network, isolates it, and automatically restores the service. This improves grid automation, fault detection and retrieval of connections.

Enhancing efficiency through Space-D

DEWA’s Space-D programme contributes to raising the development, maintenance and planning of electricity and water networks. It improves the efficiency of DEWA’s generation, transmission, and distribution divisions by monitoring solar power plants and enhancing the accuracy of generation predictions. This is achieved through forecasting weather patterns, seawater temperature and salinity, and monitoring electricity transmission lines. Additionally, it aids in detecting water leaks and identifying any changes in the infrastructure, further optimising DEWA’s operations. As part of its Space-D programme, DEWA launched two nanosatellites DEWA-SAT1 in January 2022, and DEWA-SAT2 in April 2023. DEWA is the first utility in the world to launch nanosatellites to improve its operations.

Innovative initiatives for the production, transmission, and distribution divisions:

DEWA’s initiatives for its production, transportation and distribution sectors, which rely on expertise, experiences and capabilities, contribute to enhancing DEWA’s leadership and excellence. These initiatives ensure the sustainability and preservation of resources and provide ways to develop them by applying best practices in all initiatives and projects to raise production and operational efficiency. During 2023, there were many initiatives undertaken by various divisions within DEWA, the most important of which were: Distribution Automation of Secondary Distribution Substations, Distribution Network Smart Centre, and DEWA Cable Lab.

Globally competitive results:

The seamless, swift, and effective operation of the smart grid has enabled DEWA to achieve competitive results that surpass prominent European and American companies in terms of efficiency and reliability. DEWA has reduced electricity Customer Minutes Lost (CML) in Dubai from 4.9 minutes in 2014 to 1.06 minutes in 2023, which is the lowest in the world. DEWA has also reduced losses in electricity transmission and distribution networks from 3.3% in 2014 to 2.0% last year by adopting the best international technical standards and the most accurate engineering practices in the planning, design, construction, and operation of energy systems. This percentage is also the lowest worldwide. In 2014, water network losses were at 9.1%, and reached 4.6% in 2023, which is the lowest in the world.

Tether partners with UAE based Fuze for digital assets

Tether partners with UAE based Fuze for digital assets

Tether, the global stablecoin and UAE based Fuze, a digital assets infrastructure provider with offices in Abu Dhabi, Dubai, and Istanbul, have signed a Memorandum of Understanding (MoU) to establish the terms of a collaboration on educational initiatives within the digital asset realm, with a particular focus on Turkey and the Middle East.

Through these cooperation efforts, Tether and Fuze aim to address various facets of education around crypto asset space, encompassing cross-border payment solutions, compliance, regulatory framework development, and education for local financial institutions.

In pursuit of these objectives, this collaboration will see the two companies undertaking a range of collaborative endeavors which include educational campaigns to promote the adoption of virtual assets such as Bitcoin, Blockchain, and Stablecoins like Tether (USDT) to facilitate cross-border payments. These initiatives will be strategically designed to highlight the efficiency and accessibility benefits of using digital assets in a compliant manner for businesses and individuals across Turkey, the Middle East, and North Africa.

Tether and Fuze will also analyze the development of programs and workshops aimed at enhancing awareness and understanding of digital assets and blockchain technology among local financial institutions and individuals in the aforementioned regions. These efforts will align with evolving regulatory requirements and standards to ensure compliance in the dynamic regulatory landscape. Joint strategies will be designed to promote educational initiatives and workshops, demonstrating a commitment to ethical and responsible educational practices.

Additionally, these strategies will prioritize educating merchants and businesses on the practical utility of digital assets like Bitcoin and Tether for everyday transactions, aiming to increase awareness and adoption of digital assets. The initiatives will also include the engagement of local and regional banks and financial institutions to educate them on the benefits of utilizing stablecoins and digital assets for their customers, empowering financial institutions with the knowledge and tools necessary to leverage digital assets effectively.

“As we team up with Fuze, we’re thrilled to be part of a movement that brings digital assets within reach of people across Turkey, the Middle East, and North Africa,” said Paolo Ardoino, CEO of Tether.  “Our collaboration isn’t just about technology; it’s about empowering individuals, businesses, and financial institutions to navigate the evolving landscape of finance with confidence and clarity.” 

Commenting further on the collaboration, Mo Ali Yusuf, Co-Founder and CEO of Fuze said, “We’re proud to team up with the Tether team who share our vision that digital assets will power the future of finance. By educating stakeholders at all levels, we can accelerate the digital assets landscape and ensure that everyone from institutions to end consumers benefit from the vast opportunities presented by well-managed, secure, and trusted digital assets.”

First it was Qatar now its Abu Dhabi buying Bitcoin according to Max Keiser

First it was Qatar now its Abu Dhabi buying Bitcoin according to Max Keiser

Max Keisser the Bitcoin activist is at it again. Over the past months Max continues to make claims that a nation state is purchasing large amounts of Bitcoin. First, he pointed the finger at Qatar, claiming it would purchase $500 billion worth of Bitcoin.

Qatar obviously did not confirm or negate these claims; however, its central bank and government continue to prohibit the trading of cryptocurrencies noting the risky nature of these virtual assets. This has not stopped Qatar from embracing digital assets, and developing a regulatory framework as well as the digital assets Lab.

However, this has not discerned Keisser, he commented on an X (formerly twitter) post by Vivek4real that notes that an “undisclosed nation-state just bought another 100 Bitcoin. They now own 59K Bitcoin.”

Keisser comments on X that his new intelligence points to Abu Dhabi being the purchaser of Bitcoin. He states, “Just got some new intel . . .  Abu Dhabi is now the top contender.”

So now it is not Qatar but its Abu Dhabi, the capital of the UAE.

This while still seeming farfetched, could be closer to the truth than assuming that Qatar is purchasing Bitcoin. First Abu Dhabi and the UAE in particular have been positively approaching virtual assets. Both Abu Dhabi’s ADGM (Abu Dhabi Global Market) regulatory arm the FSRA as well as Dubai’s virtual asset regulatory authority (VARA) have come out with crypto regulations and have licensed crypto exchanges, and custodians.

Moreover Abu Dhabi is home to a Bitcoin mining farm co-owned and managed by Marathon Digital so it could be plausible that they are accumulating Bitcoin from revenues of the crypto mining farm. It is also the base of Phoenix Group another huge bitcoin mining investor.

So while Keisser continuously tries to allude to the fact that an rich oil country, or a country in the MENA region is buying up Bitcoin, the biggest governmental owners of Bitcoin are the United States, Britain, and Germany. They own the most Bitcoin according to Arkham Intelligence. The crypto analytics firm noted that the United States owns 212,847 Bitcoins.

What one can say for sure, is that the ownership of Bitcoin is falling more into the hands of institutional investors, and governments whether with Bitcoin ETFs or confiscated crypto.

BitOasis aims for full VASP license after receiving operational go ahead from from Dubai’s VARA

BitOasis aims for full VASP license after receiving operational go ahead from from Dubai’s VARA

In a blog post, BitOasis acknowledged that while it has resumed its acceptance of new clients onto the platform as a crypto broker operating under Dubai’s virtual asset regulatory authority (VARA), it is working “towards securing a full virtual asset service provider license under the supervision of VARA”.

In the blog post, BitOasis announced that the crypto broker would resume accepting new registrations retail and institutional customers starting 12 April 2024.  New users would be able to create accounts on the platform and enjoy a safe, secure and convenient way to buy, sell and trade over 60 tokens with multiple currencies, including AED, SAR, and USD.

The blog post adds,” The reopening of our platform to new retail and institutional customers is a testament to our continued dedication to serving our users in full compliance with the applicable regulatory requirements.”

BitOasis had been working since July 2023 to fulfill select conditions associated with its Operational MVP License with respect to serving Institutional and Qualified Retail Investors.

In August 2023, BitOais received an investment from Indian crypto exchange CoinDCX. At the time, Ola Doudin, Co-Founder and CEO of BitOasis said: “We are delighted to be working with CoinDCX, India’s leading crypto platform. The investment will allow us to sharpen our focus on perfecting our existing products and expanding across our markets. We are very excited about the opportunities the funding will unlock for us.”

With VARA granting renewed active operational status to BitOasis, as well as the license to crypto.com, the UAE crypto exchange regulatory landscape is now one of the most competitive in the world.

Kindly note that this article has been updated on April 14th 2024 based on VARA’s website page which noted that BitOasis hasnt received a VASP license but has now become actively operational once again.

UAE based NEOPIN launches new real world assets platform

UAE based NEOPIN launches new real world assets platform

NEOPIN Permissioned DeFi platform based in Abu Dhabi UAE, which launched the first DeFi product for the Klaytn-Finischia ecosystem, has announced a new RWA ( Real World Assets), platform that will position the protocol to become a global leading Real World Asset (RWA) DeFi protocol. The platform will combine the rich liquidity of traditional finance with blockchain technology, creating global marketability with high levels of security and regulatory compliance.

Prior to this UAE based Finschia Foundation, which works to expand public blockchain and Web3 technologies, and NEOPIN, partnered to provide decentralized exchange services.

The key objectives of the new RWA platform include the development of a dedicated RWA platform based on the order book, the expansion of innovative RWA product offerings, and the expansion of the RWA multi-chain strategy.

NEOPIN’s RWA platform is being developed as an all-in-one platform that can meet the diverse needs of institutions, users and the industry. It will provide a more intuitive and simplified solution for institutional participants to engage with RWA technology and markets without the need for a complex review process. It will also be designed with a decentralized order book to make it easy to use for global users familiar with equity or crypto exchanges.

In terms of product offerings, RWA will continue to expand its innovative product suite, with more than five RWA products in the pipeline with institutional partners that are poised to make a significant impact in the DeFi and physical markets. In parallel, we are also working on a strategy to expand the RWA issuance chain, continuing the multi-chain strategy that has underpinned the success of NEOPIN’s DeFi on a dedicated RWA platform.

In March, NEOPIN launched the platform’s first RWA-linked DeFi product and entered the $5.7 billion global RWA market in earnest. With the success of its recently launched RWA derivative products, NEOPIN’s consolidated total value locked (TVL) has exceeded USD 200 million.

“NEOPIN’s RWA platform aims to attract global institutional partners and users and then position itself as an essential infrastructure for institutions,” said Ethan Kim, CEO of NEOPIN. “With our new platform, innovative product suite and institutional acquisition, we will grow into the top tier of global RWA within two years.”

Since 2017, NEOPIN has been building its blockchain expertise and technology by participating as a node validator operator for various global blockchains, including Ethereum, Tron, Cardano, Cosmos, Klaytn, and Finschia. Last year, the company was selected as an innovative company by the Abu Dhabi Investment Office (ADIO) in the United Arab Emirates (UAE) in recognition of its regulatory compliance and expertise, becoming the first Korean blockchain company to receive direct and indirect investment, and is working with the Abu Dhabi Global Market (ADGM), a financial special zone in the UAE, to create the world’s first DeFi regulation in a public-private partnership. 

Dubai virtual asset regulator: big Web3 and crypto players will bear the compliance cost for small players

Dubai virtual asset regulator: big Web3 and crypto players will bear the compliance cost for small players

During the Paris Blockchain Week, at the Global regulatory Landscape Panel session, Mathew White, CEO of Dubai’s VARA (Virtual Asset Regulatory Authority) discussed the cost of compliance for smaller crypto and Blockchain firms and the solution he is proposing where big players sponsor the cost of compliance for smaller ones.

White in his contribution during the panel made several points with regards to how he views VARA’s regulatory standpoint.

Firstly, VARA wants to regulate without damaging the presence of nearly 2000 Web3 and crypto companies already present in Dubai UAE. He states, “We seek to set a regulation that we feel anybody can be part of and is not exclusive by nature. We engage with the industry, governments, and continue to do that. While it is still not perfect, there are a number of things we are looking into to make the regime fit for everybody, one of which is how we deal with cost of compliance for small entities.”

According to White, compliance is a costly exercise and not many players have the resources to go and get regulated. His proposal is “looking towards a structure where larger market participants host smaller ones, where the cost of compliance can be borne by the large players.” He adds, “We are on this journey of allowing innovation whilst being able to regulate it.”

White explains that two years ago when he was part of the team building VARA, the Dubai government decided as part of their economic diversification project to prioritize technology and in specific virtual assets.

VARA was established to be able to position Dubai as a hub with financial stability and investor protection in mind.

When the topic of self-regulation through technology came up White acknowledge that he believes that this will one day be possible. He also stated he would be looking into piloting this idea at VARA.

He stated, “No doubt some point in the future it will be available. For the short to medium there will be regulation and it will be significant.”

Earlier this week, Crypto.com became the first international crypto exchange to receive a full license from VARA, while OKX is still awaiting final requirements to receive its full VASP operational license.

DIFC launches digital assets and smart contracts regime

DIFC launches digital assets and smart contracts regime

Dubai International Financial Centre (DIFC), the leading global financial center in the Middle East, Africa and South Asia (MEASA) region, enacts the world’s first Digital Assets Law, a new Law of Security and related amendments to select existing legislation to cater for the consequences of the new digital assets regime and revised security regime. The legislative enactments aim to ensure DIFC Laws keep pace with the rapid developments in international trade and financial markets arising from technological developments, and to provide legal certainty for investors in, and users of, Digital Assets.

Digital Assets Law – DIFC Law No. 2 of 2024

Digital Assets represent a trillion-dollar asset class and the scope for future innovation and market opportunities within it are considerable. Thus far, the primary focus in many jurisdictions has been to regulate and impose enforcement related sanctions on some of the practical applications of this asset class from a regulated financial services perspective. However, the fundamental benefits brought about by blockchain technology, the digital assets that can be created thereby, and their application across a wide spectrum of use cases will grow and become of increasing importance in a much wider context. In this regard, the broader legal questions as to the exact nature of the legal features and consequences of digital assets has very much remained open for debate on a number of key issues. International legal developments and judgments across the common law world have begun to provide some clarity in this regard but have not yet provided a comprehensive legal framework mapping out the full extent of the legal characteristics of a digital asset and how users and investors within this asset class may interact with digital assets and each other.  

Following extensive review of the legal approaches taken to digital assets in multiple jurisdictions, and a period of public consultation in 2023, DIFC is now enacting its own Digital Assets Law. 

Existing DIFC laws such as the Contracts Law, Law of Obligations, Law of Security, Law of Damages and Remedies, Trust Law and Foundations Law have also been updated through DIFC Amendment Law, No. 3 of 2024, to cater to specific issues arising in relation to this asset class. 

Updates to the Law of Obligations also provide for the use of electronic transferable records. Electronic transferable records are functionally equivalent to paper trade documents or instruments such as bills of lading, bills of exchange, promissory notes and warehouse receipts. Recognition of such documents in electronic form facilitates greater efficiencies within cross-border digital trade by increasing the speed and security of transmission of documentation and allowing for the automation of certain transactions through smart contracts.

Similarly, a great deal of innovation has taken place in secured transactions regimes internationally – particularly since the DIFC Law of Security was enacted in 2005. This includes the emergence of businesses and platforms that enable the extension of credit in, and secured or covered by, digital asset collateral arrangements, and an increasing drive to digitise international trade.  

Following consideration of regimes in other jurisdictions and, in particular, UNCITRAL’s Model Law on Secured Transaction, in conjunction with the new Digital Assets Law, DIFC is repealing the 2005 Law of Security, and replacing it with a new Law of Security to significantly amend and enhance DIFC’s securities regime. This will align the regime with international best practice and provide clarity in relation to taking security over digital assets.  In doing so, DIFC is also repealing the Financial Collateral Regulations, amalgamating the financial collateral provisions into a new chapter of the new Law of Security. 

Jacques Visser, Chief Legal Officer at DIFC Authority, said: “DIFC is excited to announce the enactment of its Digital Assets Law. We consider this legislation to be groundbreaking as the first legislative enactment to comprehensively set out the legal characteristics of digital assets as a matter of property law, and to provide for how digital assets may be controlled, transferred and dealt with by interested parties. At the same time, we are also enacting a new Law of Security, replacing the 2005 law. The revised regime is modelled on the UNCITRAL Model of Secured Transactions and significantly enhances DIFC’s securities regime to keep pace with international developments in this field and to ensure DIFC remains at the forefront of best practice.”

The new legislation came into effect on 8 March 2024 and can be accessed via DIFC’s Legislative Database: here.
The new laws reflect the Centre’s commitment to maintaining a transparent and robust legal and regulatory framework aligned with global best practice.
 

Dubai’s virtual asset regulator initially approves first stablecoin VASP

Dubai’s virtual asset regulator initially approves first stablecoin VASP

Diment, with a presence in UAE, within DMCC ( Dubai Multi Commodities Centre), a virtual asset service provider that is issuing a stablecoin backed by diamonds, has received an initial approval for a license from Dubai’s virtual asset regulatory authority (VARA). Diment will act both as a digital currency and a digital asset for store of value.

As per Diment website, the Diment Dollar is a digital product that redefines the concept of “value-security” in the financial world by reinventing the present stablecoin model. As the first Stablecoin with a fixed price of 1 USD and a token supply fully backed by the underlying diamond reserve value in USD, Diment Dollar operates in a reverse mode compared to present stablecoins by creating value first.

In a press release, Diment VA Exchange Services DMCC announced its Initial Approval from the Virtual Asset Regulatory Authority of Dubai – VARA. As per the press release, “This Initial Approval marks a significant milestone for Diment, setting the stage for future regional growth and development in the Crypto Space. While the Initial Approval is a pivotal achievement, it does not yet allow the commencement of any virtual asset activity in or from Dubai. Diment emphasizes that it is still in the process of working towards receiving the full VASP license and approval from VARA.”

“Receiving VARA’s initial approval is a testament to our dedication to regulatory compliance” said Max Weiland, CEO at Diment. “Diment is determined to launch with strict adherence to VARA’s requirements, ushering in a new era of secure and seamless access to the world of virtual assets and build a robust ecosystem that not only meets but exceeds industry standards, seeking to establish a safe and efficient gateway to virtual assets for users Locally and Globally.”

Diment VA Exchange Services DMCC is a setting up as a Broker-Dealer platform in Dubai with the aim to establish a safe and efficient gateway to virtual assets both locally and globally.

VARA has included stablecoin regulations amidst its framework, so it would seem that VARA could become the first regulatory authority to regulate a stablecoin VASP.

The supply of stablecoins circulating on blockchains is increasing, with investors adding $4.2 billion worth of dollar-pegged cryptocurrencies since the start of the month. April 2 was the biggest day for stablecoin inflows with $1.38 billion worth added, data from DefiLlama shows. It’s the biggest single-day increase since March 11 2023.

This article was updated at 13:11 GMT+3 based on information that Diment applied for a broker dealer license.