UAE Ghaf Labs partners with blockchain Sui Foundation

UAE Ghaf Labs partners with blockchain Sui Foundation

UAE based Ghaf Labs, a boutique consultancy and advisory firm specializing in web3 ventures partners with Sui Foundation, a Blockchain Foundation that supports the growth and proliferation of the Sui blockchain protocol (“Sui”) and associated ecosystem.

Sui is a Layer 1 blockchain and smart contract platform designed from the bottom up to make digital asset ownership fast, private, secure, and accessible to everyone.

This strategic alliance is aimed at driving Sui Foundation’s expansion within the UAE and the MENA region, fostering the growth of web3 adoption.

Established in 2019, Ghaf Capital Partners, a private investment firm, has solidified its position as a pioneering player in the web3 investment space, boasting an impressive portfolio of 75 portfolio companies. The team’s extensive business background and strong web2 exposure have uniquely positioned them to navigate the dynamic landscapes of both traditional and blockchain-based industries.

In response to the growing demand from companies seeking exposure in the MENA region, Ghaf Capital introduced Ghaf Labs, a boutique advisory and consultancy service dedicated to web3 ventures. The Labs’ philosophy is centered on providing personalized attention to a select number of clients each year, ensuring that their unique needs and goals are met with utmost precision and care.

As part of this groundbreaking partnership, Sui Foundation will be supported holistically through Ghaf’s expertise and market insights. With ambitious plans to expand its ecosystem in the UAE, Sui Foundation aims to tap into the region through a series of direct objectives, such as university partnerships, discussions with regulators, organizing regional hackathons and supporting local web3 projects.

Sui Foundation shall kick off its presence in the region by participating in some of the most prominent web3 summits in the UAE for Q4 2023, such as, Future Blockchain Summit, World Blockchain Summit and Global Blockchain Congress.

Sui Foundation will also host a monthly meet up in Dubai called “Sui Connect” which will act as an enabler for community building while fostering local ecosystem stimulation.

“We are delighted to partner with Sui Foundation on their journey to become the leading choice for web3 partnerships,” said Sheikh Al Mualla bin Ahmed Al Mualla, Co-founder of Ghaf Labs. “Their team’s commitment to excellence and groundbreaking innovations aligns perfectly with our vision of fostering the growth of web3 technologies in the MENA region,” Said Feras Al Sadek, Co-founder of Ghaf Labs.

Greg Siourounis, Managing Director at Sui Foundation, also expressed his enthusiasm about the partnership, saying, “Together with Ghaf Labs, we are poised to ignite an era of transformative advancements in web3 technologies in the MENA region and beyond, bringing Sui’s state-of-the-art blockchain-based technologies to bear addressing real world challenges that have not been solved by traditional centralized networks. We believe our shared vision will pave the way for building a global decentralized web3 ecosystem based on the most advanced technologies and inclusive of all people.”

Nomura’s Laser Digital crypto broker takes the UAE by storm

Nomura’s Laser Digital crypto broker takes the UAE by storm

Nomura’s crypto broker, and crypto investment service provider, Laser Digital which recently received a full license from Dubai’s virtual asset regulatory authority, VARA has now received an in principle approval for a license from Abu  Dhabi’s ADGM ( Abu Dhabi Global Market).

As per the recent news from ADGM, Laser Digital was granted an in principle approval by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), with formal regulatory licensing subject to the fulfillment of a number of conditions. When all IPA conditions are fulfilled, Laser Digital will be granted the Financial Services Permission to provide broker-dealer services and asset/fund management services in relation to virtual assets and traditional assets.

Laser Digital was launched last autumn by Nomura and was co-founded by Steve Ashley, who previously led Nomura’s wholesale division, and Jez Mohideen, who was Nomura’s Chief Digital Officer and Co-Head of Global Markets EMEA. Headquartered in Switzerland, with offices in the UAE and the UK

Jez Mohideen leads Laser Digital’s UAE entity with Cameron Dickie as Head of Distribution.

Arvind Ramamurthy, Chief of Market Development at ADGM said, “We are delighted that Laser Digital has been granted an ‘In Principal Approval’ for their virtual asset management services. Laser is developing investment services in virtual assets that are both dynamic and transparent, and their investment offerings align well with ADGM and the FSRA’s international best practices and progressive regulatory ecosystem. We welcome them to our robust and vibrant financial community.”

Jez Mohideen, CEO of Laser Digital added,“We are very grateful to have the opportunity to set up operations in ADGM; their comprehensive and clear regulatory framework is creating a global hub for digital assets that we are delighted to be joining.”

Prior to this Laser Digital was granted a full crypto license that will allow it to offer virtual asset broker dealer and investment management services in the UAE from VARA in Dubai. At the time Laser Digital announced that  it planned to launch over-the-counter trading services and digital-asset investment products for institutional investors in coming months.

According to VARA website, Laser Digital has been awarded the full VARA license, issued to VASPs which satisfies all of the requirements as specified under the Virtual Assets and Related Activities Regulations 2023. It allows a VASP to offer approved Virtual Asset services to retail customers as well as institutional customers and Qualified Investors.

Laser Digital, which is headquartered in Switzerland with officers in Dubai and London, said in a statement it had received the license from Dubai’s Virtual Asset Regulatory Authority, allowing it to offer crypto-related broker-dealer, management and investment services.

MENA receives $389 billion worth of crypto with Saudi Arabia seeing biggest growth

MENA receives $389 billion worth of crypto with Saudi Arabia seeing biggest growth

Chainalysis has completed its MENA section of its 2023 Geography of Cryptocurrency Report which will be out soon. In the report the MENA region is the 6th largest crypto economy of any region in 2023. There was an estimated $389.8 billion in on-chain value received between July 2022 and June 2023. This represents nearly 7.2% of global transaction volume during the period studied. However it is much lower that what was received in July 2021-July 2022.

MENA based crypto users had received $566 billion worth of cryptocurrency in one year from July 2021 to June 2022 which at that time was a 48 percent increase from 2020-2021.

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

Centralized exchanges and DeFi were the top services for receiving crypto value in the MENA region, with UAE receiving much higher share of crypto activity on DeFi protocols compared to other countries in MENA. In addition UAE crypto services were split almost equally between centralized exchanges and decentralized exchanges, while in KSA for example 48.6%went to centralized exchanges and 38.8% to decentralized exchanges.

According to the report no country has witnessed the growth of crypto transaction volume like Saudi Arabia has. KSA has witnessed year-over-year transaction volume growth of 12.0%. In fact, Saudi Arabia is one of only six countries to see any year-over-year transaction volume growth during the time period studied.

Chainalysis found that the crypto value received by the UAE was over US$34.9billion representing a decrease of 17% over the previous year. In Qatar there was a 26% decline, Oman 49% decline, Jordan 55% decline, and Lebanon 96% decline.

One of the most interesting findings was in the UAE where the majority of crypto transactions were for institutional investors. 67% of crypto transactions valued over $1 million were by institutional investors, while retail investors (up to $10,000) accounted for just 4.63%

“The fact that by far the larger portion of crypto investments in the UAE is for institutional and professional sized transactions, indicates an eagerness from organisations and high-net-worth individuals to add cryptocurrency to their investment portfolios. This market confidence is validation of the efforts being made by the country’s leadership to offer commendable regulatory clarity, and establish the nation as a global crypto hub,” said Kim Grauer, Director of Research at Chainalysis.

Dubai virtual asset regulator issues market notice against JPEX crypto exchange

Dubai virtual asset regulator issues market notice against JPEX crypto exchange

As Hong Kong police investigate allegations of fraud against cryptocurrency trading platform JPEX after investors complained of HK$1.3bn ($166m; £134m) in losses, Dubai’s virtual asset regulator VARA has alerted the public to the fact that JPEX is not regulated nor under VARA supervision.

JPEX on its website states, “At present, the JPEX operating headquarters is located in Dubai. As the financial hub of the Middle East, Dubai is the only global economy with an independent regulatory environment. Its newly established Virtual Assets Regulatory Authority (VARA) is bound by the international regulatory framework. Under the supervision of VARA, The trading system established by JPEX has stricter regulatory standards and more transparency and openness in cross-border transactions, thereby ensuring the integrity of the global market.”

Eleven people, including popular influencers, were arrested this week after complaints filed by 2,000 people. The case could be one of Hong Kong’s biggest fraud cases, local media say.

Virtual Assets Regulatory Authority (VARA) is issuing this Alert to call the attention of all investors and market participants, to recent media coverage of regulatory action that is being considered and/or has been initiated against the Virtual Asset Service Provider (VASP) JPEX and/or associated companies within the holding group [operational through www.jp-ex.io] and specific individuals associated with these entities.

VARA clarifies that JPEX is an unregulated operation. As VARA states, “JPEX is not regulated by or registered with VARA, and any VA Activity being carried out or offered by this entity, whether in/from the Emirate of Dubai or otherwise, has not been permitted or otherwise authorised by VARA.

False claims: Any claims by JPEX and any responsible individuals that it is regulated by VARA, or that it is subject to VARA’s oversight, are entirely false and inaccurate. Further, Law No. 4 of 2022 deems all VA activities in/from the Emirate to be are fully regulated, and under the purview of VARA – as such, should JPEX be performing any of these activities, it is operating in breach of Dubai Law.”

The notice adds that JPEX has also not been approved by VARA, and JPEX is hence not permitted to offer, promote or advertise any of its products or services, or solicit any client participation, in or from the Emirate of Dubai.

Customers may wish to notify VARA at  if they have been (i) the subject of any of JPEX’s solicitation/promotional activities; or (ii) if any of JPEX’s services have been made available to them specifically from Dubai.

VARA concludes that it will monitor the situation and may take enforcement actions against JPEX and any responsible individuals as may be warranted subject to evidenced wrongdoing.

This is the second time VARA takes action against a crypto exchange, OPNX was the first.

Dubai’s Virtual asset regulatory authority issues stablecoin regulations

Dubai’s Virtual asset regulatory authority issues stablecoin regulations

Dubai’s Virtual asset regulatory authority ( VARA) has updated its virtual asset rulebook and added new regulations with regards to what it calls Fiat referenced virtual asset ( FRVA) better know to most as virtual assets pegged to a stable value, or stablecoins.

As per VARA definition, “ Fiat-Referenced Virtual Asset (FRVA) means a type of Virtual Asset that purports to maintain a stable value in relation to the value of one or more fiat currencies but does not have legal tender status in any jurisdiction. An FRVA is neither issued nor guaranteed by any jurisdiction and fulfils its functions only by use and acceptance within the community of users of the FRVA.”

However VARA also notes an exception and states that any FRVA, i.e. stablecoin pegged to the value of the UAE currency, the AED will not be approved as it will remain under the sole and exclusive regulatory purview of the Central bank of the UAE.

In addition FRVAs exclude assets that  are representations of any equity claim; issued by central banks acting in their monetary authority capacity [e.g. central bank digital currencies [CBDCs]]; or  are tokenized bank deposits used only for interbank settlement purposes.

It also excludes reference Currency means, in relation to an FRVA, a VARA-approved fiat currence, the value of which an FRVA purports to maintain a stable reference to;and which is controlled by a central bank of any country[ies] or territory[ies] which are not subject to any sanctions in accordance with Federal AML-CFT Laws; as well as  the status of legal tender; and  which is required to be accepted within a given jurisdiction.

Issuers of FRVAs will have to ensure reserve assets, a pool of assets maintained in accordance  Rule III.B of these FRVA Rules and as approved by VARA. Reserve Assets are not Client Money or Client VAs, as defined in the Compliance and Risk Management Rulebook.

The issuance of an FRVA is a Category 1 VA issuance and as such is a virtual asset (VA) Activity. 

In addition VARA states that currencies of sanctioned countries or territories. VASPs may not have as a Reference Currency any currency issued by any country[ies] or territory[ies] which are subject to sanctions under Federal AML-CFT Laws.

VARA may, in its sole and absolute discretion, designate any VASP Licensed to issue an FRVA as a Significant FRVA Issuer at the time of issuing a Licence or anytime thereafter.

In designating a VASP as a Significant FRVA Issuer, VARA may consider all factors relevant to the VASP and/or the FRVA issued by the VASP, including but not limited to  the number of holders of the FRVA; the value of circulating and/or outstanding supply of the FRVA;  the value of the Reserve Assets maintained by the VASP; the number and value of transactions in the FRVA; whether the VASP and/or its affiliates carry out any other VA Activity[ies] and/or financial services in Dubai, or provide services similar to VA Activities and/or financial services in other jurisdictions; interconnectedness with licensed financial institutions and/or VASPs; and/or the business, structural and operational complexity of the VASP in relation to the FRVA issued by it.

UAE regulated Crypto broker RAIN now connected with local banks

UAE regulated Crypto broker RAIN now connected with local banks

UAE regulated crypto broker RAIN which recently received its virtual assets licens from ADGM in Abu Dhabi is now providing its customers with the ability to work with local banks, using their accounts to make instant deposits and withdrawals of AED without any transfer restrictions.

As per their press release, this further enhances our banking infrastructure and users in the UAE can benefit through a secure and seamless transition from fiat currency to virtual assets.

In addition to the innovative banking stream, Rain ADGM has expanded its OTC (Over the Counter) service, offering high-net-worth and institutional clients a white-glove, institutional-grade brokerage facility for execution of  larger virtual asset trade orders. The OTC Desk will provide clients with a customized trading experience and block trading for precise execution at the best value.

Rain OTC Desk will facilitate seamless and secure over-the-counter (OTC) trading for clients, by offering a more customized execution and settlement service, and sourcing competitive pricing, This exclusive offering will be available to high-net-worth and institutional clients, further solidifying Rain ADGM’s commitment to delivering cutting-edge solutions to its diverse clientele.

Emmanuel Alamu, Global Head of OTC, added that “our integration with the local banking infrastructure is a comprehensive step forward in building a cohesive virtual asset community in the UAE. With near-instant bank deposits, we are now able to bring the quality of localised OTC services in the UAE materially closer to both the efficiency and depth of more established global virtual asset markets within Europe and Asia.”

UAE’s ADGM grants crypto custodian Changer an FSP license

UAE’s ADGM grants crypto custodian Changer an FSP license

UAE based changer.ae, a crypto custodian service provider has received  the Financial Services Permission (FSP) license by the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM).

With the FSP, Changer has become officially authorized to offer its services to individuals who are looking for a robust and reliable platform to hold their crypto currencies. Being uniquely positioned in the UAE, Changer focuses on protecting crypto based investors and informing the community about safety, risks, and crypto investments through its state-of-the-art custodian services.

Changer’s custody solution is an easy-to-use, all-in-one platform that offers customers simplicity at their fingertips while safeguarding their virtual assets. Individuals from all over the world can soon access the mobile application and use it to store their digital assets, with peace of mind that their investments are secure and always insured.

Changer’s enterprise-grade and robust infrastructure uses advanced encryption and multi-signature authorization to enhance the security of its wallets. Unlike most applications, Changer caters to investors looking for an independent provider of safe custody. By separating trading venue and storage, market participants are better able to ensure the protection of client capital.

Regulated by the world-class advanced regulatory framework of Abu Dhabi Global Market (ADGM), Changer offers clarity and transparency in its services. Since the crypto world is a very fast-paced one and can be overwhelming at times, Changer has been designed with our clients in mind, it is simple, straightforward, and user-friendly. The intuitive interface allows customers to easily manage their digital assets, make transactions, and monitor their account activity through one of the fastest and most efficiently designed platforms. Moreover, there is a dedicated team of experts that is available for support and to answer any questions our clients may have.

Nadeem Ladki, Senior Executive Officer of Changer, commented on the launch: “We would like to thank his excellency H.E Ahmed Jasim Al Zaabi, Chairman of ADGM, the Financial Services Regulatory Authority, and particularly the Authorization Team for granting us the FSP license. This license is an endorsement from one of the most reputable regulators in the world and marks Changer’s commitment to maintaining a transparent and secure relationship with ADGM, ensuring that all our clients’ virtual assets are safeguarded in the safest way possible”.

He added: “I would like to extend my heartfelt gratitude to the dedicated Changer team, our partners, and the regulators who have made the launch possible. Our combined hard work has made Changer come to life, soon to be offering individuals all over the world the possibility to protect their investments with cutting-edge security measures. With Changer’s services catering to a global audience, we are assisting in driving the UAE’s ambition to become a global center for the crypto industry and virtual asset community”.

Beyond the imminent launch of its custody solution, Changer plans to expand its services in the near future to offer its clients simplified fiat conversion and fiat escrow services thereby enriching its product portfolio.

UAE Deca4 partners with Hedera powered HashPack to bring Web3 to the MENA sports industry

UAE Deca4 partners with Hedera powered HashPack to bring Web3 to the MENA sports industry

UAE based Deca4, a specialised blockchain consultancy studio, and HashPack, a non custodial wallet built on Hedera Hashgraph DLT (Distributed Ledger Technology) platform have partnered together to bring Sphera World, which is leveraging the largest football and sports fans community in the Arab world with the latest technology and trends of Web3 NFTs, and Blockchain, into the world of non custodial wallets and the Hedera network.

Sphera world is powered by the largest sports media website in the Middle East, Kooora.com, and is backed by the Hashgraph Association. Sphera World is also incubated and managed by UAE Deca4.

May Chan, Co-Founder, and CEO of Hashpack stated, “This partnership is a monumental step towards our shared vision of expanding the reach of Web3 technology and bridging the gap between traditional Web2 users and the progressive Web3 ecosystem.”

She adds, “At HashPack, it has always been our mission to deliver an unparalleled user experience, exploring the transformative power of Web3 technology as a unique advantage for conventional companies and digital brands.”

Chan believes the alliance with Deca4 is a significant landmark as it goes beyond the tech stack and engages with community members and companies. The utilisation of Distributed Ledger technology needs to be harnessed effectively and this is done thoroughly by Hedera Hashgraph.

Mohammed Mahfoudh, Founder and CEO of Deca4 consultancy adds, “Working with HashPack to bring Sphera World, powered by Kooora, with a staggering 30+ million active users, will provide a unified platform that meets the needs of Web savvy users while introducing Web2 natives to the Web3 world.”

Above all, the project is supported by Hashgraph Association, a non profit organisation that promotes and provides funding for innovation, research and development for the benefit of economic inclusion and with a positive environmental, social, and governance (ESG) impact.

Kamal Youssefi, President of The Hashgraph Association, explained, “We are proud to be supporting organisations in the MENA region, especially those in the sports and gaming industries which are set to grow by 8.7% by 2026 according to The World Economic Forum. Our association is here to support companies in their journey towards Web3, helping them deliver unmatched value to stakeholders and users.”

Varys Capital to enter GCC market with $75 million digial asset blockchain fund based out of UAE

Varys Capital to enter GCC market with $75 million digial asset blockchain fund based out of UAE

Venture capital fund Varys Capital is looking to enter the GCC market, and is working to raise $75 million for its equity fund focused on blockchain innovation. The fund aims to achieve long-term growth from a curated portfolio of high-quality, early-stage businesses utilising blockchain to solve addressable needs in the wider software, gaming, and finance industries. 

To govern its entry into the UAE, Varys Capital has secured reputable local services, including Al Tamimi, one of the GCC’s most prestigious law firms, as its primary counsel.

According to the press release, the company has received inquiries from local institutions and prominent investors. The fund has 12 commitments in place across decentralised (DeFi) and centralised (CeFi) finance, GameFi/Web3, infrastructure, and emerging technologies.

Darius Askaripour, Managing Partner, Varys Capital said, “We are looking at entering the UAE market first encouraged by supportive local government directives, its high innovation levels, robust infrastructure, and forward-thinking mindset, but plan to deploy across the Middle East and North Africa with multiple deals already at the final stages of due diligence.”

The move comes as the International Market Analysis Research & Consulting Group (IMARC) forecasts the GCC’s digital asset management market will be worth US$222 million by 2028, registering a compound annual growth rate of 12.9% over the next five years.

Since 2018, Varys Capital has managed an equity-focused venture fund and a distinguished quantitative trading fund. Its blockchain venture fund boasts a total value to paid-in capital returns of 440% and over triple-digit internal rate of return since capital deployment in March this year.

The fund has made five investments in prominent blockchain, cloud technology, and games projects such as modular blockchain network developer Movement Labs, games studio SunSpear Games, blockchain enhancer for mobile operators Bloxtel, competitive multiplayer first-person shooter games producer Shrapnel, and cloud hardware and software developer, Nirvana Labs. Two of the projects have already experienced significant uprounds boosting returns

UAE’s ADQ Silal launches blockchain powered food traceability platform

UAE’s ADQ Silal launches blockchain powered food traceability platform

UAE’s ADQ, 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, has just launched its blockchain powered platform to trace the lifecycle of food from farm to fork.

As per the news announcement, using the new traceability service is as simple as scanning the QR code of a Silal Fresh product through the Silal App. This traces the journey of crops, assuring users that the data appearing on their screen is credible.

This move is a milestone towards achieving food credibility, gaining customers’ trust and loyalty.

Enhancing food chain transparency is important for companies to ensure consumers of the quality of their products and to sustain efficient supply in the market, prevent foodborne illnesses, and detect the source of a problem in the event of an outbreak.

Knowing the source of food is essential for good health and wellbeing, which drove Silal to exert efforts to give full access to explore the origins of Silal Fresh products.

Through its traceability project, Silal aims to create a resilient supply chain system that advances agricultural goals and sustainable practices.

ADQ had set up a $200 million fund to invest in Digital assets, supplychain and Fintech. 

ADQ has been investing in various startups, including blockchain ones, and recently UAE Fuze has raised $14 million led by Further Ventures which is backed by ADQ. 

ADQ is also partnered to create a bitcoin mining farm with Marathon Digital.