Tether signs MoU with UAE RAK DAO for stablecoin adoption

Tether signs MoU with UAE RAK DAO for stablecoin adoption

Tether Operations Limited, creators of USDT digital currency has signed a Memorandum of Understanding (MoU) with RAK Digital Assets Oasis (RAK DAO). As per the press release this is the first step towards the launch of several strategic initiatives to help foster the adoption of Bitcoin technology and stablecoins in Ras Al Khaimah (RAK) UAE.

In collaboration with RAK DAO, Tether will help facilitate crypto payment adoption in the region and design blockchain-focused education programs.

Through its recently launched educational arm, Tether Edu, Tether will develop initiatives for individuals of varying skill levels covering cutting-edge fields such as Bitcoin, blockchain, peer-to-peer technologies, stablecoin adoption, and real-world use cases of crypto.

To date, RAK DAO has attracted interest from more than 100 businesses, as well as many Indian based tech entities. As a result, Tether will collaborate closely with RAK DAO on comprehensive initiatives designed to educate and empower local businesses, opening up new avenues for growth and innovation.

“Tether is proud to collaborate with RAK DAO to realize the promise of Bitcoin and blockchain technology in the region,” said Paolo Ardoino, CEO of Tether. “As home to the world’s first and only free zone dedicated to the proliferation of digital asset endeavors, Ras Al Khaimah is in a prime position to become the region’s leading hub of blockchain technology and innovation, and Tether is committed to working with RAK DAO to make this dream a reality.”

Commenting on the collaboration, Dr. Sameer Al Ansari, CEO of RAK DAO, stated: “This collaboration with Tether marks a pivotal moment in RAK DAO’s journey towards becoming a leading hub for blockchain innovation. By harnessing the power of Bitcoin technology and cryptocurrencies, we aim to drive economic growth, foster financial inclusion, and position RAK DAO as a global leader in the digital economy.”

UAE Blockchain enabled Silal Agrifood company launches automated packhouse

UAE Blockchain enabled Silal Agrifood company launches automated packhouse

ADQ backed Silal, Abu Dhabi’s leading blockchain enabled Agrifood and technology company, has inaugurated its automated packhouse in Al Ain, spanning 12,000 square meters. The facility represents a significant step in fresh produce packaging technology, underscoring Silal’s commitment to quality, innovation, safety and sustainability.

In September 2023 ,UAE based Silal, which enhances agriculture and food safety in Abu Dhabi by diversifying and stimulating food production sources via technology, research and knowledge transfer initiatives for farmer, launched its blockchain powered traceability platform to trace the lifecycle of food from farm to fork.

With the inauguration of Silal’s packhouse it now has a total capacity of 325 tons per day, capable of producing over 180,000 packs daily, and equipped with 28 precooling chambers and 9 cold stores, Silal has optimized every aspect of the packaging process. This state-of-the-art facility ensures the highest quality standards but also demonstrates Silal’s dedication to efficiency and service excellence.

Silal’s investment in this cutting-edge infrastructure which includes utilization of blockchain technology reflects its vision to champion economic development while catering to the evolving needs of consumers. The packhouse represents a milestone in Silal’s ongoing mission to redefine standards in the fresh produce industry, setting a benchmark for quality, and efficiency.

In October 2023 ADQ also acquired a majority stake in SAFCO Group, a leading food and beverage distributor in the UAE.

Fils partners with Arab Financial services to embed sustainability in business models

Fils partners with Arab Financial services to embed sustainability in business models

Fils, a UAE based enterprise-grade digital infrastructure provider enabling companies to embed sustainability and climate action into their business models using technologies such as Blockchain has partnered with Arab Financial Services (AFS), the Middle East and Africa region’s leading digital payment solutions provider and fintech enabler.

As per the press release, the collaboration marks a significant step towards fostering sustainable practices and driving climate action across industries in the region. Leveraging Fils’s state-of-the-art fintech technology and AFS’s expertise and regional leadership position in digital payments, the partnership will be key to helping integrate sustainability seamlessly into businesses’ operations, customer journeys, and financial transactions.

AFS, which has offices in Bahrain, Egypt, Oman, and the UAE, offers digital payments solutions and fintech, serving over 60 clients across more than 20 countries in the Middle East and Africa region. Fils’ partnership with AFS enables a significant proportion of banks, financial institutions, and organizations in the MEA to track and mitigate their emissions, aiding the global transition to a low-carbon economy.

Samer Soliman, CEO of AFS commented, “We are proud to join forces with Fils in a strategic partnership to drive sustainable solutions within the digital payments landscape. This collaboration directly supports our ESG strategic goals by accelerating their implementation. As a leading digital payments provider, we embrace the responsibility to drive sustainability not only for ourselves but also empower our partners and clients to achieve their own environmental ambitions.”

Nameer Khan, CEO of Fils, said, “We are thrilled to embark on this strategic partnership with Arab Financial Services. By combining our advanced digital infrastructure with AFS’s leadership in electronic payments outsourcing, we have a unique opportunity to drive positive change across industries in the MENA region. Our shared commitment to sustainability and climate action will not only transform business operations but also redefine the landscape of responsible finance in the region and beyond.”

Key highlights of the partnership between Fils and AFS include:

  • Sustainable Digital Transformation: Fils’ enterprise-grade digital infrastructure will empower AFS to seamlessly integrate sustainability and climate action into its payments ecosystem. This includes developing innovative solutions that contribute to reduced carbon footprints and environmental impact.  
  • Green Financial Products: The collaboration will explore opportunities to introduce sustainable financial products, with a specific focus on Islamic Credit Cards. By incorporating environmental, social, and governance (ESG) principles, both organisations aim to set new industry standards for responsible and ethical financial services.
  • Enhanced Customer Experiences: Fils and AFS will work together to enhance customer journeys by providing eco-friendly and sustainable options for electronic payments. This includes the development of user-friendly interfaces that promote responsible consumer choices and a positive environmental impact.
  • Industry Leadership in Sustainability: As pioneers in their respective fields, Fils and AFS will lead the financial and digital industries in the MENA region towards a more sustainable future. By combining their strengths, the partnership seeks to inspire businesses to prioritise sustainability in their business strategies and take measurable action to tackle climate change.

Fils’ partnership with AFS is hot on the heels of an impressive roster of collaborations so far this year. Exciting partnerships with e& Enterprise, Mashreq Bank and Flowcarbon have cemented Fils’ place as a global leader in sustainable financial infrastructure.

In addition Fils recently announced its expansion into Pakistan through a partnership with TPS, a digital banking and payments solution provider that powers banks, digital banks, FinTechs, payment processors, merchants, and telecoms around the world. The collaboration aims to make a lasting impact on the international stage, embedding climate action at the core of digital financial services.

A new Blockchain infrastructure company sets up in Abu Dhabi UAE

A new Blockchain infrastructure company sets up in Abu Dhabi UAE

Blockdaemon, an institutional-grade blockchain infrastructure company, has expanded its presence in the UAE, setting up an office and establishing an entity in Abu Dhabi under Registration Authority of Abu Dhabi Global Market (ADGM). Prior to that Blockdaemon became of corporate member of the crypto Oasis ecosystem in Dubai.

Blockdaemon is known for their independent blockchain node infrastructure that delivers institutional-grade security and monitoring. They drive the blockchain economy forward by making it easier to deploy nodes and creating scalable enterprise blockchain solutions via APIs, high availability clusters, auto-decentralization and auto-healing of nodes.

The expansion to operate and provide Web3 infrastructure solutions in the UAE will include making available its node and validator infrastructure solutions locally, as well as their self-hosted MPC wallet technology.

“This marks a significant stride for Blockdaemon in bolstering its presence in the UAE and deepening our partnership with local regulators and clients,” said Amor Sexton, COO of Blockdaemon. “With Blockdaemon receiving approval from the Registration Authority of ADGM, we are not only solidifying our foothold in the region as the leading Web3 infrastructure provider but also affirming our commitment to supporting institutions with blockchain infrastructure. This approval underscores our dedication to operating with integrity and trustworthiness.”

Konstantin Richter, CEO and Founder of Blockdaemon commented, “As we continue to expand our operations and deepen our partnerships across the globe, this milestone paves the way for greater collaboration and innovation in the UAE’s vibrant blockchain ecosystem. We are excited about the opportunities ahead and remain steadfast in our mission to empower businesses and organizations with secure and scalable blockchain infrastructure solutions.”

Arvind Ramamurthy, Chief of Market Development at ADGM said, “We congratulate Blockdaemon on receiving their licensing from ADGM to establish their presence in Abu Dhabi. The decision of a prominent institutional-grade blockchain infrastructure company to expand in this region with ADGM underscores the progressive regulatory environment offered by our international financial centre, as well as the significant potential and demand within the blockchain and Web3 sub-cluster and associated services. ADGM has been a pioneer in creating an ecosystem conducive to the growth and success of companies like Blockdaemon, and we eagerly anticipate the opportunities they can unlock within this region.”

Blockdaemon expanded into the Asia-Pacific region in February 2022 and shortly thereafter in March 2022, expanded to the EMEA region.

More and more blockchain infrastructure providers are setting up in the UAE specifically in Abu Dhabi. They include names such as IoTa which recently set up its headquarters in ADGM.

DWF Labs and Binance refute any claims of crypto market manipulation or cover up

DWF Labs and Binance refute any claims of crypto market manipulation or cover up

DWF Labs, a proprietary high frequency trading firm with offices in UAE, China, Singapore, and Hongkong as well as Binance the biggest crypto exchange globally have vehemently denied all accusations made in a recent article in the Wall Street Journal that there was market manipulation and an ensuing cover up.

The WSJ article discussed accusations that DWF Labs had carried out market manipulation allegedly discovered by a now ex-employee of Binance.

As per the article the fired employee, along with his team, was tasked with identifying and investigating suspicious trading activities. They reported that certain “VIP” clients, including those trading over $100 million per month, were engaged in prohibited practices such as pump-and-dump schemes and wash trading.

Wash trading is a type of market manipulation that can artificially inflate prices and lead investors to believe there is greater market liquidity than there actually is. Widespread crypto wash trading profoundly distorts markets, erodes investor trust, and skews financial market indices

The unnamed former Binance insider claimed that the exchange’s investigators identified $300 million worth of wash trading by DWF Labs in 2023, involving cryptocurrencies including the Yield Guild Game (YGG) token.

Binance concluded that the evidence of market abuse by DWF Labs was insufficient. As per WSJ article shortly after the report was submitted, the head of the surveillance team was dismissed.

The allegations against DWF Labs first surfaced in September 2023 after unusual on-chain activity was noted by the cryptocurrency community. Wintermute, another algorithmic trading firm, accused DWF Labs of misrepresenting their market activities. Yoann Turpin, co-founder of Wintermute, criticized DWF Labs during an interview at Token2049, arguing that they mislabel what are essentially over-the-counter trades as investments

In reply to these accusations both Binance and Dubai based DWF Labs have come out with statements denying these charges and defending their practices.

In a blog post on DWF Labs website, the firm noted, “DWF is a proprietary high-frequency trading firm founded in 2018 by a collective of academically distinguished researchers and professional quantitative traders from a top proprietary trading firm. Our organisation has deep expertise in artificial intelligence, machine learning, and advanced statistical methods, all of which we harness to execute high-frequency trading strategies across a vast array of digital asset products, including spot, perpetual contracts, and options markets. Our trading activities span over 60 centralised and decentralised venues, making DWF a prominent player in the financial technology landscape.”

The blog adds,” From day one, our goal has been to always uphold the highest standards of transparency, trust, and integrity.”

DWF Labs is trusted by over 700 companies, platforms, and institutions. The company states that it provides liquidity to markets for more than a quarter of the 100 largest crypto-native projects and our reach spans across the entire crypto ecosystem. They note that they are committed to supporting bold entrepreneurs by providing liquidity, contributing to Total Value Locked (TVL), operating validator nodes, and making venture investments.

DWF Labs cooperated with DMCC (Dubai Multi Commodities centre) to support crypto startups and was named most active lead investor in 2023. It is also Bybit’s top liquidity provider according to their statements.

DWF Labs claims in its blog post that it has supported the integration to institutional wallets: TON <> Fireblocks , Conflux <> Fordefi, as well as Hackathons: TON, Viction, Conflux (U-Hack), Bybit x DMCC x DWF Labs including ecosystem funds and grants: Airdao, ZigCHAIN, TON, Theta, Algorand, Flare, EOS, Floki, API3, Kava, Gala Chain, Klaytn.

In a strong worded sentence, DWF Labs stated, “Establishments and fake media will not root the movement that Bitcoin started in 2009. We are in crypto for the very reasons why the establishments want to get rid of us.”

On another front Binance also faced the allegations with their own statement saying “Binance emphatically rejects any assertion that its market surveillance program has permitted market manipulation on our platform. We have a robust market surveillance framework that identifies and takes action against market abuse. Any users that breach our terms of use are off-boarded; we do not tolerate market abuse.”

Binance notes that over the last three years its team has offboarded nearly 355,000 users with transaction volumes of more than $2.5 trillion for violating their terms of use.

The crypto exchange added, “We have 190 million users. They can rest assured we do not favour any individual user, no matter how big, over the safety of the platform.  That said, these are not decisions we take lightly. We do deep investigations, using multiple tools, and only offboard clients when there is sufficient evidence, they have violated our terms of use. A recent independent investigation from Inca Digital into Binance’s market surveillance practices validates the effectiveness of our approach, finding “minimal signs of anomalous trading activities.”

Whether these allegations are part of a wider 21st century witch hunt or whether these are true representation of reality, what is for sure is that the crypto ecosystem as it grows is coming under increased pressure from the establishment!

As Binance blocks thousands of crypto transactions in UAE, it faces fines of $4.38 million in Canada

As Binance blocks thousands of crypto transactions in UAE, it faces fines of $4.38 million in Canada

Binance is and has blocked tens of thousands of suspicious cryptocurrency transactions in the UAE with many brokers and exchanges using Binance because of its significant liquidity pool, yet the crypto exchange is still facing regulatory scrutiny with Canada’s regulator recently fining Binance for non-compliance with the laws related to money laundering and terrorist financing.

This comes as Meera Judge, the Dubai-based director of regulatory licensing and policy at Binance speaking to Lara on the Block noted that while Binance is doing all it can to ensure utmost compliance, when it comes to exchanges working with Binance is up to them to ensure their own compliance.

By the end of February Binance had registered 178 million registered users, with $3 billion in net inflows between November 2023 and February 2024.

Lara on the Block asked Judge these questions after an interview with her appeared in AGBI magazine where she unveiled that Binance has blocked tens of thousands of suspicious crypto transaction in the UAE.

Judge told Lara on the Block, “Binance continues to go above and beyond industry standards to detect bad actors through proactive measures and collaboration with private and public entities. Binance takes any use of its platform to facilitate “illicit” activity very seriously. It has invested substantial resources in talent and tools to reduce this exposure even further, making Binance an industry leader in this respect.”

She adds, “We have worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity. We proactively block users from sanctioned regions and do this through KYC and a variety of KYC/AML tools and vendors including, but not limited to, Jumio, Onfido, WorldCheck, Elliptic, and CipherTrace.

As Judge explains, their due diligence process includes screening users against extensive database via Refinitiv World-Check that contains major sanctions and terrorism lists. She adds, “This is done on an ongoing basis to ensure that we keep bad actors out of our platform.”

Binance is utilizing a team of 500 compliance officials worldwide, with 100 of them dedicated to transaction monitoring.

Judge believes that Binance’s operational stability is critical to the stability of the broader market, stating that Binance is the largest exchange in the world and is considered a systemically important financial infrastructure.

This however according to Judge doesn’t mean that Binance is responsible for the compliance of other crypto exchanges. She tells Lara on the Block, “Binance’s liquidity pool is significant, so many other broker-dealers and exchanges tend to use us, which is why we face additional scrutiny. Given that Binance’s liquidity pool is significant it is used by other broker-dealers and exchanges however it’s up to them to ensure their own compliance. Binance goes above and beyond industry standards, and we encourage others in the industry to endeavor to do the same.”

Binance has over the past years increased its efforts towards compliance especially as it works to gain regulatory status in several countries. It recently was awarded a regulatory license in the UAE. Earlier this year, Binance noted that it increased year-over-year spending on compliance from $158 million to $213 million, purchasing a raft of new software systems to block and report suspicious transactions. Binance also decided to bring back executive Steve Christie as its deputy chief compliance officer.

Despite all this, On Thursday May 9th 2024, Canada’s financial crime watchdog levied a fine equivalent to $4.38 million against Binance for compliance failings. The Financial Transactions and Reports Analysis Centre of Canada imposed an administrative penalty on Binance for non-compliance with the laws related to money laundering and terrorist financing.

The regulator, known as Fintrac, found administrative violations including a failure to register as a foreign money-services business and allegedly failing to report large virtual currency transactions of C$10,000 or more in the course of a single transaction, along with the prescribed information.

In 2023, Binance pleaded guilty to violating U.S. anti-money-laundering requirements and agreed to pay a $4.3 billion fine. The exchange also faces civil charges in a SEC lawsuit.

So while Binance has been trying to do so much to increase its compliance, and while Binance now holds a regulated license in the UAE blocking hundreds of thousands of suspicious crypto transactions, and as it announces its registration with the Indian Financial Intelligence Unit after the region banned the platform and over nine others in December 2023, it is still facing the heat in other countries across the globe.

Updated on May 13th 2024 with feedback from Binance

After ADGM Hacken partners with Klumi Ventures for blockchain security

After ADGM Hacken partners with Klumi Ventures for blockchain security

Hacken, a blockchain security auditing firm, has forged a strategic alliance with Klumi Ventures, recently regulated Web3 venture capital firm based in Abu Dhabi Global Market (ADGM). As per the press release the partnership is poised to establish new benchmarks in blockchain security and compliance, capitalizing on the formidable security expertise of Hacken and the financial licensing of Klumi Ventures in UAE.

Prior to this Hacken signed an MOU with ADGM to set benchmarks for security and compliance.

Klumi Ventures recently announced the launch of a $15 million investment fund aimed at fostering the Web3 ecosystem in ADGM. This initiative focuses on providing pre-seed and seed investments for emerging Web3 startups. It is the sole web3 VC and Fund Manager regulated by ADGM. It stands at the forefront of the region’s burgeoning blockchain ecosystem, offering comprehensive support to early-stage startups

Hacken and Klumi Ventures aim to cultivate a secure and regulated framework for capital deployment, with the overarching goal of positioning ADGM as a global hub for blockchain innovation, renowned for its stringent security and compliance protocols.

“Klumi Ventures collaboration with Hacken signifies a paradigm shift in blockchain security and compliance. By blending regulatory prowess with cutting-edge cybersecurity expertise, we’re charting new territory in establishing global benchmarks for safety and trust in the blockchain industry as a fund manager. This alliance underscores our shared commitment to pioneering innovative solutions that elevate transparency, security, and regulatory excellence in the digital assets landscape” stated Kristiina Lumeste, Senior Executive officer of Klumi Ventures.

The scope of the partnership includes creating a Security-First Blockchain Environment in ADGM. The partnership harnesses Hacken’s extensive cybersecurity expertise to establish new global standards in blockchain safety. Through this collaboration, all blockchain initiatives driven by Klumi Ventures within the ADGM will meet the highest security standards, creating a secure and stable environment for innovation.

In addition will be the continuous monitoring for Klumi Ventures Portfolio. Hacken’s advanced on-chain monitoring technologies will be deployed across the new and existing Klumi Ventures’ portfolio companies, providing real-time security assessments and ensuring continuous compliance with ADGM’s standards.

Finally the partnership will significantly enhance the blockchain community’s expertise within ADGM. By organizing a variety of educational initiatives such as workshops, seminars, and webinars, the collaboration will empower local and regional blockchain professionals. These events are designed to impart best security practices and introduce the latest innovations in blockchain technology, cultivating a knowledgeable and skilled workforce.

Dyma Budorin, Hacken Co-Founder & CEO stated, “Hacken is impressed by Abu Dhabi’s steadfast commitment to prioritizing security in developing its local blockchain ecosystem. We are honored to stand as a partner in this endeavor. Our collaboration with Klumi Ventures marks another significant stride toward forging a secure and dependable Web3 landscape within the region. Drawing from our extensive 7-year experience in collaborating with the world`s top crypto brands, we are dedicated to leveraging our best practices to ensure the safety and integrity of every project within the Klumi Ventures portfolio.”

Together, Hacken and Klumi Ventures are setting a new standard for blockchain ventures in the region, emphasizing security, compliance, and community engagement as pillars of their strategic partnership. This collaboration not only enhances the value of the Web3 ecosystem within ADGM but also ensures it is a safe, innovative, and thriving environment for all stakeholders.

UAE based AMINA Bank if ETH is a security there are significant risks to entire crypto community

UAE based AMINA Bank if ETH is a security there are significant risks to entire crypto community

UAE based AMINA Bank, previously know as SEBA crypto bank, regulated in Abu Dhabi ADGM, has published an interesting article on Ethereum, and ETH being designated as a security. According to AMINA Bank, the question on the minds of Ethereum investors is whether or not Ether is a security given the pending US decision on spot Ether ETFs ( Exchange Traded Funds).

As per the article on one hand, the US Commodity Futures Trading Commission (CFTC) has defined ETH, along with several other cryptocurrencies, as commodities. Conversely, US Securities and Exchange Commission Chair Gary Gensler has refrained from providing a clear stance. This was further amplified during his Congressional hearing in April 2023, he repeatedly avoided giving a definite answer. Even recently, he did the same in an interview – refused to give a clear answer to the question. This lack of clarity has left the crypto community uncertain about the possibility of a shift for the cryptocurrency from its current legal ambiguity.

Concerns escalated when the Ethereum Foundation recently disclosed being subpoenaed by an unnamed “state authority,” suspected by many to be the SEC, although Fortune claimed it was the US SEC, unconfirmed by the SEC itself. Although there were bigger factors in play, this regulatory uncertainty has partly contributed to the abysmal performance of ETH relative to BTC since the start of 2023.

To confront the SEC and address ETH’s legal standing, Ethereum software development firm Consensys has filed a lawsuit recently. The lawsuit says that the SEC lacks jurisdiction to regulate global, peer-to-peer computer networks and this includes Ethereum.

Consensys argues that the SEC’s extensive reach into commodities, software, and emerging technology platforms is illegal. According to the lawsuit, if the SEC’s influence prevails, it could nullify efforts by Congress, the Federal Reserve, and the Treasury on stablecoins, undermining established US policy priorities and granting technological superiority to nations beyond the US.

AMINA Bank believes that it currently seems unlikely that ETH will be declared a security. However, for investors, it is important to understand the implications if it were to go the other way, so let’s dive in. To state the obvious, if ETH were indeed designated as a security, it would pose significant risks to the entire crypto and decentralized finance (DeFi) ecosystem. ETH currently is the backbone of DeFi, being extensively integrated within it. It functions as the native gas token for the Ethereum blockchain and its scaling solutions.

It serves as widely accepted collateral in DeFi and boasts of the largest developer community in the crypto space. Once a security, all infrastructure that lets users use ETH could be seen as unregistered securities brokers. Exchanges seeking to list Ether would need to register as securities broker-dealers with the SEC. Most teams in crypto may exit the space if subjected to such operational complexity.

Another possible implication is that protocols may start prefering Proof-of-Work (PoW) consensus. In a Proof-of-Stake (PoS) system, entities with larger token holdings have a greater chance of validating the next Ethereum block and receiving block rewards for the same in ETH.

Gensler has suggested that such PoS chains, rewarding users for locking up their coins, resemble investment contracts and could be deemed securities, without specifically mentioning ETH. Given that most major blockchains, apart from PoW Bitcoin, work on PoS like Ethereum, regulators might extend similar classifications to them.

Additionally, non-ETH tokens hosted on the Ethereum blockchain could also face repercussions due to being so closely integrated with a supposed security (ETH). This is why new blockchains may want to then go back to the PoW consensus mechanism to avoid regulatory scrutiny.

It’s fair to say that this would not only put a hold on but potentially even reverse years of progress across the cryptocurrency market. This is a doomsday scenario for cryptocurrency investors which currently is unlikely to happen.

The argument against ETH being classified as a security revolves around the nature of ETH tokens themselves. Unlike stocks or bonds, ETH tokens do not represent legal ownership of any business entity. They are essentially code stored in a decentralized database. When considering whether ETH qualifies as a security, the crucial question is whether the offer and sale of ETH tokens constitute an investment contract under the Howey test.

The Howey Test is used in the US to determine whether certain transactions qualify as investment contracts. Under the Howey Test, a transaction is an investment contract if:

It is an investment of money.

The investment of money is in a common enterprise.

There is an expectation of profits from the investment.

Profits come from the efforts of some particular others.

At the time of Ethereum’s ICO in 2014, when the community was smaller, ETH may have met the criteria of the Howey test. This is because participants likely invested money expecting profits based on the efforts of a few select others like founder Vitalik Buterin and some core developers.

There was also an expectation of profit for ICO investors. It could have also been considered a “common enterprise” due to the founding team being the only members of the Ethereum community at the time of ICO. However, the SEC did not act then.

Today, several factors suggest that ETH does not meet the Howey test criteria the way it is right now. Firstly, with the rise of DeFi, ETH serves as more than just an investment – it also has utility in paying gas fees for transactions onchain.

Additionally, Ethereum has become increasingly decentralized with a diverse developer community (over 7000 monthly active developers throughout 2023) and network success no longer dependent solely on the efforts of specific individuals like the Ethereum Foundation. From a security standpoint, there is no single gatekeeper. The total number of active validators for Ethereum has exceeded the 1 million mark, according to data from Glassnode.


Many were concerned as liquid staking provider Lido Finance neared the 33% threshold mark in percentage of ETH staked. However, this is now down to 28% at the time of writing. Also, Lido is not a single entity and currently has over 30 node operators.

But does Proof-of-Stake make ETH a security as Gensler believes? In PoS, running a validator node on the Ethereum network is considered a service, not an investment scheme. This is because rewards are contingent on honest behavior during validation.

Dishonest actors may face slashing of their stake. However, staking services provided by centralized platforms like Coinbase or Kraken may blur the line, potentially exposing providers to legal action. Nonetheless, this does not affect ETH’s classification.

As obvious as it may sound, another reason why ETH may not be classified as a security is because it currently is not so. CFTC has allowed ETH futures trading and has explicitly stated ETH as a commodity. This reinforces the argument against ETH being classified as a security. The SEC’s approval of ETH futures ETFs for trading on regulated security exchanges also underscores ETH’s non-security status and falls outside the SEC’s jurisdiction.

AMINA Bank article concludes that it seems that the US SEC is refusing to take a clear stance on this matter in order to confine ETH within a grey area, thereby allowing it to delay the decision on the applications of the US spot Ether ETFs filed by financial behemoths like BlackRock, Fidelity, Greyscale and others.

A complete list of Ether ETFs can be found here. Regardless of the SEC’s eventual decision on ETH’s security status, we hope it positively contributes to the future of crypto and finance.

Vault Hill launches blockchain digital ecosystem at Abu Dhabi AIM Congress

Vault Hill launches blockchain digital ecosystem at Abu Dhabi AIM Congress

Vault Hill blockchain with its offices in Ras El Khaimah UAE, has launched its digital ecosystem Vault Hill 3.0 at the AIM Congress in Abu Dhabi. The system is set to redefine the integration of gaming, artificial intelligence (AI), and immersive social experiences. This upgrade goes beyond a simple refresh, introducing a re-engineered platform that is poised to become a central hub for digital innovation, mainly focusing on enriching the technological terrain of Africa.

Vault Hill has crafted interactive spaces where users worldwide, and especially in Africa, can engage, create, and explore within a richly immersive environment. “With Vault Hill 3.0, our focus sharpens on empowering the African community, harnessing advanced technologies to propel regional development and connect the continent to global digital trends”, says Jimi Daodu, CEO of Vault Hill.

Step into the future of gaming with VH Games, where blockchain technology meets immersive gameplay. “VH Games introduces a tokenized economy, utilizing tokens to blend play with real value creation, providing gamers not just entertainment but also economic opportunities within our expansive digital realms,” says Tayo Kalejaiye, Head of Gaming at Vault Hill.

Also introduced is Hilda an AI partner that serves as a dynamic companion for businesses and government agencies, facilitating sophisticated digital strategies and enhancing customer interactions with predictive analytics and personalized service.

UAE regulator grants QCP capital approval to offer crypto derivative trading solutions

UAE regulator grants QCP capital approval to offer crypto derivative trading solutions

QCP, an institutional digital assets company, announced in a press release, that they have received In-Principle Approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to conduct regulated activities. According to the press release, the decision to make a move into this strategic market for the company’s footprint was in anticipation that the Middle East is going to become a dominant global hub for capital flowing into traditional and digital assets.

Founded in 2017 QCP is one of the largest trading desks in the world for digital asset derivatives and a provider of trading solutions and structured strategies. Ernst & Young finds that as of September 2023, the monthly volume of crypto derivatives stands at US$1.33 trillion, which is nearly four times the size of the crypto spot market. With most of the crypto derivative market currently existing outside the US, Abu Dhabi and the UAE have a lot of potential to capture this market segment.

In addition, with notable financial institutions such as Goldman Sachs and Brevan Howard launching in Abu Dhabi last year, Abu Dhabi is rapidly attracting its target segment of clients including family offices, traditional and crypto native macro hedge funds, high net worth individuals, blockchain protocols, VC funds, brokerages and more. QCP also previously announced a partnership with Further Ventures, which is reflective of how the company plans to meet the demand for financial and derivatives digital asset offerings in the market.

Melvin Deng, CEO, QCP said, “The IPA is a significant development for us and advances our goal of embracing greater regulation. We are committed to meeting ADGM’s transparent and high standards of regulatory compliance. Our intention is to be a responsible player that wants to support market confidence. We are proud to be the first Singaporean digital asset market maker and broker-dealer to set up here in the market and hope we can encourage others to venture into this dynamic market. We want to learn from what other players are doing in Abu Dhabi and the region and bring our expertise as a first mover in digital assets to the ecosystem.”

Arvind Ramamurthy, Chief of Market Development at ADGM said, “We congratulate QCP on receiving its IPA from ADGM and welcome them to Abu Dhabi’s thriving international financial centre. With a leading trading desk and digital asset capabilities, we look forward to QCP’s integration into ADGM’s ecosystem, which will streamline regional opportunities. As the digital assets landscape continues to evolve in the Middle East, we anticipate more companies like QCP to recognise the progressive and comprehensive nature of ADGM’s regulatory frameworks, fostering confidence in choosing Abu Dhabi as their regional base.”

QCP will continue to have its main company headquarters in Singapore while leveraging on Abu Dhabi as a base to break new ground and drive innovation. It is well positioned to expand on the back of strong business growth, with a 64 % Y-o-Y increase in Q1 trading volumes. In line with QCP’s long term commitment to the UAE, subject to the regulatory approval for the grant of the FSP, the company plans on making further investments to invest in their presence in the UAE.