Dubai digital asset association discusses virtual asset regulations with VARA and SCA

Dubai digital asset association discusses virtual asset regulations with VARA and SCA

Dubai’s virtual assets regulatory accomplishments was the center of discussions at the recent event hosted by Dubai Digital Assets Association (D2A2), supported by Dubai Chamber of Commerce. On the one-year anniversary of VARA (Virtual assets regulatory authority) in Dubai, the forum provided a platform for industry stakeholders to review and analyze the development of the regulatory landscape for virtual assets and the challenges industry is facing.

The feedback and insights gathered during the roundtable discussion will be consolidated into a submission by D2A2 on behalf of the stakeholders to regulatory authorities for suitable action.

Participants included VARA, the Securities and Commodities Authority (SCA), several government authorities that are focused on developing the web3 ecosystem – such as Dubai Economy, DWTC, RAKDAO – to name a few, licensed Virtual Asset Service Providers (VASPs) by VARA, and service providers such as lawyers, compliance specialists and forensic intelligence consultants.

During the Forum, VARA outlined the licensing regime it has put in place and process of licensing adopted to support the industry.  Industry Participants highlighted the areas where they seek clarifications, adjustments, or improvements in the regulatory framework.

The occasion also presented an opportunity for regulators, businesses, and all stakeholders to engage in a meaningful and open discussion about the future of Virtual Assets in Dubai. Participants were able to exchange views with the regulatory authorities and fellow industry participants.

Gaurang Desai, Chairman of the D2A2, commented on the occasion “At D2A2, it is important for us to bring together all stakeholders to bring out opportunities and challenges faced by each of them in order to arrive at solutions that are equitable and prudent for long-term sustainable growth of this nascent industry. We look forward to building on this momentum and becoming a trusted partner for industry participants and the regulators in time to come.”

D2A2 has the  goal of enhancing the ease of doing business in Dubai, driving positive economic impact, and further strengthening the emirate’s position as a leading global business hub.

UAE allows Ramadan Bitcoin and crypto donations

UAE allows Ramadan Bitcoin and crypto donations

In what could be called a first, a UAE top official noted that the UAE governmental entities and authorities in the UAE will accept Bitcoin, and other crypto currencies for donations this Ramadan.

UAE newspaper, Khaleej Times in an article stated, that a UAE top official has noted that authorized individuals and entities collecting funds during Ramadan will accept Bitcoin and other digital currency payments. This comes as Bitcoin surges past the $60,000 mark.

In a press conference held by the Ministry of Community Development, Mohammed Naqi, Director of Non-Benefit Public Associations Department and Mona Khalil, Director of Government Communications also noted that unauthorized individuals and entities collecting funds during Ramadan will be liable for fines up to Dh500,000 or even imprisonment.

The ministry said restaurants will not be allowed to directly donate food boxes to mosques.

Mohammed Naqi, Director of Non-Benefit Public Associations Department, said, “A fine not less than Dh500,000, or imprisonment, shall be imposed on anyone who collects or receives donations from outside the UAE in violation of the applicable regulations and procedures.”

He added: “A fine not exceeding Dh150,000 and not less than Dh300,00 or imprisonment, shall be imposed on anyone who uses donation funds for purposes other than those accepted or collected for. A fine one of Dh100,000 shall be imposed on any entity that labels itself as a “charitable or humanitarian “association, organization or institution without obtaining certification from the competent authority.”

Only 34 approved entities, mainly charitable organizations and government entities, will be permitted to receive and collect donations for Ramadan, the ministry said.

Bitcoin and other cryptocurrencies will be accepted alongside traditional methods of raising funds like cash with receipts, vouchers, SMS, markets, exhibitions, auctions, charity events and monthly deductions from personal bank accounts.

In 2019 The Ministry of Community Development, had launched a blockchain payment gateway in partnership with Dubai Blockchain center.

Morgan Stanley opens office in ADGM as it eyes Bitcoin ETF in the United States

Morgan Stanley opens office in ADGM as it eyes Bitcoin ETF in the United States

Morgan Stanley, which is said to be eyeing a Bitcoin ETF, has announced the opening of its office in Abu Dhabi at ADGM. The firm has expanded its footprint in the Middle East. The firm already has offices in Riyadh, Dubai, and Qatar.

Commenting on the new office, Clare Woodman, Head of Morgan Stanley EMEA and CEO of Morgan Stanley & Co International plc, said “We are delighted to be expanding our regional presence and commitment by opening an office in Abu Dhabi Global Market (ADGM). There are exciting times ahead for the MENA region and as capital markets activity continues to grow and diversify it brings new and rewarding opportunities for both regional and global investors.”

Arvind Ramamurthy, Chief of Market Development at ADGM, continued “We welcome Morgan Stanley, a pioneer in the global financial services industry to Abu Dhabi and its thriving International Financial Centre. This expansion underscores the attractiveness of Abu Dhabi and its value proposition as a preferred destination for global players seeking strategic growth opportunities for their business, showcasing our commitment to fostering a conducive ecosystem that drives sustainable economic development in the UAE and beyond.”

Patrick Delivanis, Regional Co-Head of MENA at Morgan Stanley commented, “We have a highly sophisticated investor base in the MENA region, and opening an office in Abu Dhabi allows us to broaden our footprint and further deliver local and regional clients access to Morgan Stanley’s leading institutional securities business as well as our renowned asset management franchise, and increasingly, global clients access to the regional market.”

The opening of an office in ADGM, well known for its virtual assets regulatory regime is interesting as Morgan Stanely is said to be deciding on whether or not it will offer Bitcoin ETFs to customers.

As per a CoinDesk article, Wall Street giant Morgan Stanley is in the midst of performing due diligence to add spot bitcoin ETF products to its brokerage platform, according to two people with knowledge of the matter.

One of the people said Morgan Stanley, which is among the largest U.S. broker-dealer platforms, has been evaluating offering spot bitcoin ETFs to clients since the Securities and Exchange Commission approved their introduction in the U.S. in January.

There are 10 spot bitcoin ETFs now trading in the U.S. The ones with the most assets are Grayscale’s GBTC, BlackRock’s IBIT and Fidelity’s FBTC. It’s not clear which ones Morgan Stanley is looking to offer to its clients.

Morgan Stanley, a leader in the alternative investments and private market space with over $150 billion in assets under management, was the first major U.S. bank to offer its wealthy clients access to bitcoin funds in 2021. The bank confirmed during its first-quarter earnings call in April 2021 that it was offering its wealth management clients exposure to bitcoin via a pair of external crypto funds.

The wealth management firm’s former CFO, Jonathan Pruzan, said at the time that the bank was allowing qualified investors to gain access to two passive funds. It is understood that these funds were offered by Galaxy Digital and NYDIG.

Peregrine and Tsangs offer blockchain tokenization to institutional investors

Peregrine and Tsangs offer blockchain tokenization to institutional investors

Abu Dhabi based Peregrine, a digital asset tokenization provider and a licensed fund management platform, has partnered with Tsangs Group, innovation focused family office to offer high quality institutional investor marketplace in UAE.

“Tsangs Group is the first Far East family office to set up in the Dubai International Financial Centre since 2021; we are pleased to shape our profile with this promising partnership, as Peregrine is banking on the Gulf state’s world class banking infrastructure and connectivity to financial centers like Hong Kong or London,” said Patrick Tsang, Chairman of Tsangs Group.

Peregrine is renowned for its industry leading blockchain based asset tokenisation platform, which has been reviewed by the ADGM’s local regulatory body Financial Services Regulatory Authority (FSRA), and its strategic partnerships with major blockchains.

“Peregrine views Tsangs Group as a key global strategic partner featuring a world class team with high quality institutional assets and is compelled by the mission to bridge opportunities from East to West,” said Simon Goodman, CEO & Co-Founder of Peregrine.

Together, Peregrine and Tsangs Group are perfectly positioned to bring high quality institutional products to the ADGM using advanced blockchain technology.

“Abu Dhabi is quickly emerging as a key strategic hub in the global digital assets industry, and the Peregrine platform sees itself at the forefront of its evolution. Building relationships in Abu Dhabi and beyond is instrumental to the development of Peregrine in the ADGM and surrounding region,” said Paul Salama-Caro, CIO and Co-Founder of Peregrine.

MIRAI Capital to invest $7 million in digital assets exchange

MIRAI Capital to invest $7 million in digital assets exchange

UAE based MIRAI Capital Global, has made a non-binding commitment of $7 million to invest in DigiMaaya, a digital assets exchange and bank.

As per MIRAI website, MIRAI Capital Globbal aims to revolutionize global investing, in collaboration with Royal Office of H.H. Sheikh Ahmed Bin Faisal Al-Qassimi. The firm is based in Ras El Khaimah UAE.

It includes the following members, Dunston Pereira (Group CEO of the Private Office of H.H. Sheikh Ahmed Bin Faisal Al-Qassimi), Pranav Jyoti (Chief Investment Officer for the Private Office of H. H. Sheikh Ahmed Bin Faisal Al-Qassimi and MD, MIRAI Capital Global) along with Vinoth Beemjee (Senior Partner and Regional Head, APAC, MIRAI Capital Global).

MIRAI Capital global has identified the massive opportunity that DigiMaaya digital assets exchange will offer. It directly addresses democratizing financial purchasing through fractional asset offerings via a comprehensive marketplace and other product mixes.

Mr. Pranav Jyoti mentioned that DigiMaaya’s innovative tech solutions use the latest technology stack, building the pillars to forward Industry 4.0 thesis via emerging tech like Blockchain, AI, Encryption and Cryptography, VR, etc.

APAC Lead and Senior Partner, MIRAI Capital, Vinoth Beemjee, additionally said, “Since DigiMaaya will allow users to benefit from its suite of services like Trading, Loans, Insurance, Tax calculator, Financial Health Card. This investment by MIRAI Capital Global is a strong bet on smart services being built by a seasoned Team.”

Utsav Dar, Founder & CEO, DigiMaaya shared his vision regarding the company and the benefit of this investment through MIRAI Capital Global, “At DigiMaaya’s core, we believe in taking care of all our stakeholders, i.e. our investors, users, employees and vendor partners. Our internal processes are aligned with our company culture and our team’s common passion fuels our drive to create a user centric, global, regulated and compliant Financial SuperApp.”

DigiMaaya digital assets exchange and bank, comprises a team of Industry leaders & Specialists with varied expertise who have aligned themselves to the vision of building DigiMaaya as a Fintech super app. This global team includes Heero Punjabi (Co-founder and CTO), Punnoose Joseph (Co-founder and Chief Technology Architect), Preet Gill (Co-founder, Investor Relations and Corporate Communications), and Dr. Chiraag Jain (Chief of Staff and Chief Operating Officer).

Utsav Dar emphasizes on DigiMaaya’s USPs: A 100% licensed and regulated App with robust and transparent audit mechanisms for trust building, 3-level Appellate solution across 9 languages for seamless customer support, Steady liquidity addressing a major problem in the current illiquid market, and a Transition to Web3 through informative educational series and incentivized user benefits.

IOTA to invest $10 million in UAE and African tradetech startups

IOTA to invest $10 million in UAE and African tradetech startups

UAE based IOTA ecosystem, DLT Foundation, has committed $10 million investment fund to support early-stage startups and ventures in the UAE and Africa. The funding will focus on TradeTech, TradeFinance, and tokenization solutions.

It aims to bolster a digital tradetech ecosystem in the UAE, Africa, and around the globe by advancing the roll-out of digital trade and finance solutions. The initiative builds on a recent collaboration agreement for the establishment of the TLIP organization, announced at WTO MC13.

The first investments will be shared publicly over the coming weeks and will include newly founded tradetech ventures and dedicated startup accelerator programs for startups building on IOTA.

This announcement follows the official signing of the collaboration agreement for the Trade Logistics Information Pipeline (TLIP) at the WTO MC13 event. TLIP is a public global trade infrastructure initially developed by the IOTA Foundation and TradeMark Africa. The TLIP Consortium will be founded jointly by the World Economic Forum, the Tony Blair Institute for Global Change, Trademark Africa, the Institute of Export and International Trade, and the Global Alliance for Trade Facilitation. Together they will advance TLIP by developing a neutral governance framework and establishing TLIP as a global, public goods infrastructure for trade.

With its investment of $10 million, IOTA supports a flourishing tradetech ecosystem that advances trade digitization, and, in doing so, makes trade finance more accessible for all. The funds are earmarked for early-stage startups, accelerator programs, and pilot programs that will drive the development of digital trade infrastructure.

Dominik Schiener, Co-Founder of IOTA and Chairman of the IOTA Foundation, emphasized the strategic importance of this initiative: “By investing in the future of TradeTech, we are not just facilitating smoother trade transactions; we are laying the groundwork for a more interconnected and efficient global trade ecosystem. Our collaboration with leading organizations through the TLIP is a testament to our commitment to innovation and excellence in this field.”

This initiative will be kickstarted with the launch of a public grants program over the coming weeks, followed by an accelerator program for startups in the UAE before summer and in Africa before the end of the year. These programs are designed to empower entrepreneurs and innovators who are building new trade solutions on the IOTA and TLIP infrastructure, offering them the resources and support needed to bring their visions to life.

$3.8 billion fund now tokenized on the blockchain with Sygnum Bank

$3.8 billion fund now tokenized on the blockchain with Sygnum Bank

Sygnum Bank which has a regulated digital asset bank in the UAE, alongside Hamilton Lane, and Apex Group announced a cross industry project that expands global private market access to significantly larger and more diverse groups of qualified investors using Blockchain.

Leveraging the power of the blockchain, the new DLT-registered share class automates and integrates traditionally separate fund management functions, increasing both accessibility and efficiency. The first fund to feature the new share class will be Hamilton Lane’s USD 3.8bn GPA Fund, which has an annual average performance growth of 14.6 percent and has outperformed the MSCI World Net Total Return Index (USD) by 4.44 percent since inception in 2019.

Leveraging Sygnum’s DLT solutions, the minimum investment has a significantly lower fund entry point than direct investments into traditional private markets’ evergreen funds. These DLT-registered shares will be available exclusively to Sygnum professional, institutional and corporate clients.

The unique investment opportunity is the result of a strategic, cross-industry project underway for more than a year. Hamilton Lane, a leading global private markets investment firm with over USD 900bn in assets under management and supervision, will serve as investment manager for the new offering. Apex Group, in its role as transfer agent and fund administrator (via Apex Fund Services regulated in Luxembourg), and FundRock-LRI, in its role as Alternative Investment Fund Manager (AIFM), is leveraging Sygnum’s DLT solution to manage the on-chain share registry.

Victor Jung, Head of Digital Assets at Hamilton Lane, says “We strongly believe that tokenisation has the potential to transform the way investors gain access to the historically strong returns and performance opportunities within the private markets, and are delighted to announce this digital-native, institutional-grade offering with Sygnum and Apex. This joint initiative with the Swiss Private Wealth team underscores the region as a leading digital asset hub that we believe will serve as a catalyst for broader adoption within the banking and wealth management industry. We would like to invite the community to join us in this movement.”

Fatmire Bekiri, Sygnum Head of Tokenisation, says “The new DLT-registered share class in Hamilton Lane’s GPA Fund marks the first entry in Apex’s on-chain share register. This is a significant breakthrough in making private markets more broadly accessible and investible via DLT solutions. We are proud to join forces with other industry leaders like Hamilton Lane and Apex, and we look forward to this strategic partnership delivering a series of new and unique opportunities for investors, as well as heralding positive, blockchain-powered change for the industry.”

Bruce Jackson, CFA, Apex Group Chief of Digital Asset Funds and Business says “Hamilton Lane will raise new investor capital, while expanding direct access to their GPA Fund offering. Clients of Sygnum Bank now have access to a sophisticated alternative asset class, designed to achieve significant alpha through uncorrelated investment returns. Apex continues to meet its goal of increasing access for its clients’ alternative strategies and will continue to perfect its Framework Operating Model for the distribution of alternative asset funds using blockchain as the subscription, onboarding, operating, administration, and transfer agency platform.”

This unique investment opportunity is made possible by Sygnum’s expertise in leveraging the blockchain’s capabilities in a fully-regulated environment. Novel project aspects include the “fractionalisation” of assets to enable smaller investment entry-points, streamlined compliance, the end-to-end automation of the on-chain share registry and transfer agent activities, as well as increased levels of transparency due to the open nature of DLT. This project is built on the Polygon blockchain.

According to McKinsey5, the +300% growth of global private markets fundraising between 2009 and 2022 was due to its consistent outperformance of public markets. However, the multi-million-dollar commitments that were typically required to participate in this high-growth market have, until now, limited private markets exposure for many in the broader investment community.

Sygnum closed a $40 million round, which valued the firm at $900 million earlier this year.

UAE HAYVN investors Deus X Capital buy out shareholders and appoint new CEO

UAE HAYVN investors Deus X Capital buy out shareholders and appoint new CEO

UAE HAYVN investors, Deus X Capital, a $1 billion family office has agreed to buy out HAYVN digital assets infrastructure provider and appoints Richard Crook as new CEO. Deus X Capital will purchase the business brand, technology, clients and staff from other HAYVN shareholders.

The parties have agreed to the asset purchase, subject to completion.

As per the press release, the deal provides the opportunity to recapitalize and reinvigorate the business as it seeks to consolidate its presence in the Middle East, while allowing for growth globally.

In addition, Richard Crook has been appointed interim CEO of HAYVN with a focus on growing the business and realizing the global opportunities ahead of it. Ahmed Ismail, Board Member & Co-Founder of HAYVN had told LaraontheBlock that they would be appointing a new CEO in December 2023.

Crook joins HAYVN following more than 25 years in the digital assets and investment banking industries, including roles such as COO of BCB Group, the digital assets payments business, and Head of Emerging Technology at investment bank RBS after serving in senior management roles at UBS.

Tim Grant, CEO, Deus X Capital, speaking on the asset purchase stated, “HAYVN is an innovative business at the forefront of the movement to a democratized financial system. We are committed to providing institutional clients with the critical services they need to capitalize on the existing and growing opportunity in digital assets, while continuing to build and develop new capabilities. HAYVN is core to our strategy and represents another pillar of our commitment to the Middle East region.”

Richard Crook, interim CEO, HAYVN, said: “I am delighted to join a business that has already established itself as a leader in financial technology and a fundamental pillar of the digital assets ecosystem. The digital assets industry is growing at a rapid pace as it continues to converge with traditional financial services, and I look forward to ensuring that HAYVN is central to that growth as we build on our success.”

This comes after the ousting of their previous CEO under difficult circumstances.

UAE government to increase adoption of AI and Blockchain in global trade

UAE government to increase adoption of AI and Blockchain in global trade

In a recent X post by HE Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, he noted that the UAE government will be accelerating the adoption of technologies such as AI (Artificial Intelligence) and Blockchain into the global trading system.

The Initiative called Regulation 5.0 for the Future of TradeTech and the Trade-Sustain-AI Initiative will identify key trends in trade technology and provide a blueprint for a harmonized global regulatory system to oversee their deployment.

According to Al Zeyoudi this is especially important for developing countries to avoid widening the technology gap.

Al Zeyoudi stated on X platform, “At the inaugural TradeTech Global Forum today, we launched two important initiatives that will accelerate the adoption of technologies like AI and Blockchain into the global trading system: Regulation 5.0 for the Future of TradeTech and the Trade-Sustain-AI Initiative.

He added, “Our Trade-Sustain-AI initiative will create global partnerships to oversee the development of AI-powered trade solutions that will advance sustainable practices throughout supply chains – and help promote a smarter, cleaner trading system.

The comments were made during the Abu Dhabi World Trade Organization Conference being held in Abu Dhabi between Feb 26th and 29th. The conference had metioned that decentralization of global supply chains would be on the table for the first time.

The conference witnessed that attendance of 165 nations and trading blocs. WTO Director-General Ngozi Okonjo-Iweala noted in an interview with WAM, “We will initiate new dialogues, called deliberative sessions, where, for the first time, the ministers will engage on issues crucial to the contemporary world, including trade and environment, trade and climate change, trade and sustainability, and trade and inclusion.”

She advocated the decentralization of supply chains, expanding them to developing countries.

Moreover during the conference, Blockchain Foundation, IOTA announced its partnership with the World Economic Forum, Trademark Africa, the Tony Blair Institute for Global Change, the Institute of Export and International Trade, and the Global Alliance for Trade Facilitation.

As per their press release, “Together, we are embarking on a transformative journey to revolutionize international trade through the creation of the Trade Logistics Information Pipeline (TLIP). International trade has long been burdened by inefficiencies, bureaucracy, and lack of transparency. The cumbersome process of trading goods across borders involving numerous documents, multiple actors, and intricate regulations often leads to delays, errors, and even fraudulent activities. Recognizing the urgent need for a reliable and transparent digital trade infrastructure, our coalition is committed to fostering a neutral governance framework for TLIP.”

TLIP aims to streamline information exchange and promote collaboration across borders. It builds on IOTA’s distributed ledger technology (DLT) to provide data immutability and security. It performs the same function as a government stamp on a trade certificate to prove authenticity – just made digital.

Customs in destination markets will not need a stamped physical Certificate of Origin when using TLIP. However, while physical documents are subject to fraudulent risks, the TLIP system ensures transparency and immutability of the relevant details of uploaded documents.

TLIP ensures that a digital certificate is authentic and prevents it from being tampered with. IOTA also provides distributed controls, so each trade actor can manage their data and give access permission without outsourcing the permission controls to a centralized entity enabling a digital-based collaboration much like how the free market of trade works manually today.

Furthermore, using IOTA’s DLT enables parties to interact securely online without requiring a centralized platform that stores all information and is vulnerable to hacking or manipulation.

From UAE to Turkey Crypto exchange OKX expands in MENA

From UAE to Turkey Crypto exchange OKX expands in MENA

After OKX received its crypto exchange VASP license from Dubai UAE through VARA ( Virtual Asset Regulatory Authority), the crypto exchange now receives a license in Turkey. OKX TR, will provide Turkish users with a trusted, compliant and transparent gateway to crypto trading and decentralized finance. The OKX Web3 Wallet is currently available in Türkiye through OKX’s global platform.

With the launch of OKX TR, users have access to enhanced localized features, including Turkish Lira direct deposits and withdrawals from banking partners such as: Fibabanka, VakıfBank, Ziraat Bankası, İş Bankası, Şekerbank and Türkiye Finans. The OKX TR team also offers 24/7 local customer support in Turkish and English, ensuring users receive timely assistance and comprehensive guidance when needed.

Also available is OKX Wallet, a non-custodial Web3 wallet that provides access to a user-friendly self-custody portal to trade NFTs, use dApps, and more. It’s the first wallet to feature both Multi-Party Computation (MPC) technology and Account Abstraction (AA) features, which paves the way for wider adoption among less technical users.

OKX President Hong Fang said: “The official launch of OKX TR is a significant milestone in our global expansion strategy. With a crypto adoption rate close to 50%, Türkiye represents a very dynamic and promising market for the industry as it continues to develop. The population’s high level of engagement and understanding of digital assets makes it an ideal environment for OKX, and we’re strongly committed to helping continue to grow this already vibrant ecosystem.”

OKX TR Board Chairman Mehmet Çamır said: “The launch of OKX TR is a testament to our belief in the country’s huge potential for growth and our commitment to the market. Already a global leader in crypto trading, Türkiye is also in a prime position to grow in the decentralized finance space. We’re excited to support this development, and firmly believe that our presence here will play a pivotal role in nurturing Türkiye’s emergence as a Web3 innovation hub.”