Promising for Blockchain and AI : UAE Minister for AI appointed as Director General of Dubai Crown Prince’s Office

Promising for Blockchain and AI : UAE Minister for AI appointed as Director General of Dubai Crown Prince’s Office

Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, who also serves as a Board of Trustees member and Deputy Managing Director of the Dubai Future Foundation, Vice Chair of the World Government Summit, Chairman of the Dubai Chamber of Digital Economy, and Chairman of the Artificial Intelligence and Blockchain Council has been appointed as the Director General of the Dubai Crown Prince’s office.

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, has appointed Omar Sultan Al Olama as the Director General of the Dubai Crown Prince’s Office.

Olama has been committed to strong governance, effective regulation, and the provision of essential data and infrastructure positions the UAE as a prime test-bed for AI innovations. He has overseen initiatives such as the personal data protection law, the National Program for Coders, and the UAE Council for Artificial Intelligence and Blockchain. As per the announcement, he aims to accelerate the growth and transformation of the digital economy, ultimately doubling its contribution to the UAE’s non-oil GDP within the next decade.

UAE Aya climate focused Web3 Launchpad one step away from receiving full VARA license

UAE Aya climate focused Web3 Launchpad one step away from receiving full VARA license

UAE Aya licensed under Web3 Innovations FZE, an entity of Enjinstarter, a Web3 Launchpad and advisory that it has been granted a virtual asset services provider license pending fulfillment of pre-operating conditions and qualifying for operational approval.

The license one fully received will allow Aya to provider Virtual asset Management and investment services. VARA has listed Aya on its registry but states it is still pending full license.

As per AYA press release, the license remains non-operational until the company fully satisfies all remaining conditions and select localization requirements defined by VARA, following which it will be able to commence operations, subject to regulatory re-verification and approval.

Prakash Somosundram, co-founder and CEO of Enjinstarter and AYA Foundation stated, “It’s an honor to be participating at the world’s most influential climate conference and adding our voice to the collective climate change conversation.  “This is a great day for AYA and a huge milestone for us. The VASP license process demonstrates our compliance with the VARA process as we leverage Web3 to help bridge the climate financing gap. We are thankful to VARA for taking a collaborative approach towards understanding our business and working closely with us throughout the application process. We are now poised to leverage the license approval and accelerate operational set-up to deliver impact as soon as we conclude the outstanding regulatory pre-requisites.”

Ayay a climate focused launchedpad aims to support the next generation of sustainability innovation. Acting as a green financing bridge, AYA will connect retail investors, high-net-worth individuals, and institutional investors with startups working in areas such as reforestation, nature credits, mangrove conservation, and sustainable agriculture. It will also provide startups with access to innovative technologies and incubation services. AYA’s pipeline already includes UCO Network, a platform to optimize the collection, processing, and trading of used cooking oil while rewarding responsible actions, and other nature-based projects looking to leverage blockchain and Web3 for climate action.

As one of its first initiatives, AYA is collaborating with UAE-based The Storey Group on a campaign to plant mangroves in Dubai. Everyone who joins the AYA community will have a mangrove tree planted in their name and will receive a digital certificate with the exact coordinates of the tree.

“AYA’s main contribution to the fight against climate change is as a platform to scale the pace of climate innovation and action,” said Vasseh Ahmed, managing director of Enjinstarter MENA. “We are looking to work with founders and projects that have a unique proposition within our key focus areas by helping them build their product narrative, raise capital, and launch their projects. We already have projects in the pipeline and look forward to working with them.”

Updated November 12th with link to pending status on VARA website.

UAE based Seagrass and The Hashgraph Association Announce Launch of Co-Funded Carbon Credit Web3 Identity Wallet 

UAE based Seagrass and The Hashgraph Association Announce Launch of Co-Funded Carbon Credit Web3 Identity Wallet 

The Hashgraph Association, the non-profit organization accelerating the broad adoption of the DLT ( Distributed Ledger Technology) network Hedera globally, has today announced a co-funding initiative with UAE based Seagrass, a climate action company and subsidiary of E.ON, one of Europe’s largest operators of energy networks and energy infrastructure. 

This initiative facilitates the building of the Seagrass Wallet, a proof-of-concept Web3 identity wallet that provides users with a decentralized digital identity and wallet that relates to their carbon projects. 

Seagrass which is based in Abu Dhabi Global Market (ADGM) financial centre UAE holds a license to arrange trades in environmental instruments from ADGM’s Financial Services Regulatory Authority. Seagrass chose the UAE because of its position as the cross roads and stands where carbon credits are originated as well as demanded.

Seagrass aims to unlock the potential of the carbon markets and transform carbon finance, which can make an important contribution to the net-zero transition. This collaboration supports its goal of bringing together supply from certified projects with large-scale demand from buyers with ambitious climate strategies on a centralized marketplace driven by technology, transparency and integrity.

The Web3 identity wallet provides transparency on environmental, economical and project data to buyers and developers. Self-Sovereign Identity (SSI) architecture enabled by Hedera ensures users will have a decentralized digital identity and crypto wallet that is compliant with European standards. This leading-edge Web3 digital wallet creates, stores, and presents digital identities with verifiable credentials, alongside the storage and exchange of assets.

The digital identity would put users who had been onboarded by Seagrass in charge of their credentials, potentially allowing them to save time and reduce costs by interacting with other market participants without having to go through fresh due diligence or know-your-client checks.

The proof-of-concept has been designed to be compatible with Seagrass Carbon Map, a live application available to buyers and sellers on the Seagrass marketplace that provides users with sophisticated data on the impact of nature-based projects and enables deep, ongoing engagement between project developers and carbon credit buyers. Seagrass Wallet is currently in testing and will be made available to clients in 2024.

Thomas Birr, Chief Strategy and Innovation officer at E.ON and Managing Director of Seagrass’ shareholding company, said: “We’re proud to be partnering with The Hashgraph Association and Hedera on the use of Distributed Ledger Technology (DLT) to unlock opportunities in the carbon markets via Seagrass.  I look forward to seeing its implementation and use in 2024.”

Kamal Youssefi, President of the Board of The Hashgraph Association, said: “As we build a vibrant innovative ecosystem for startups, enterprises, and government institutions around the world, we simultaneously focus on the realization of a net zero carbon future. Combining the power of Hedera’s DLT with Seagrass’ commitment to scale the carbon markets via liquidity, integrity, and digital access for all, it also builds value on the wider engagement with E.ON.”

IOTA utilizes blockchain assessment from Zokyo for UAE ADGM registration

IOTA utilizes blockchain assessment from Zokyo for UAE ADGM registration

IOTA utilized the expertise of Zokyo, a blockchain security solutions provider to carry an assessment of IOTA’s white paper and Token economy paper in alignment to industry benchmarks and ADGM regulatory requirements for IOTA’s registration as the first DLT Foundation in ADGM.

 Zokyo Econ Lab a new division of Zokyo is dedicated to assisting blockchain companies in optimizing their token economics, aligning them with both industry and regulatory standards across various jurisdictions. Zokyo Econ Lab specializes in driving exceptional growth at the forefront of blockchain innovation, including ecosystems, protocols, foundations, and DAOs.

Zokyo Econ Lab’s first major undertaking in regulatory compliance involved the successful registration of IOTA, a renowned blockchain protocol, under the Abu Dhabi Global Market DLT Foundations 2023 regulations.

The IOTA audit assessed the alignment of IOTA’s White Paper and Token Economy paper with regulatory requirements and recognized industry benchmarks for their content. This included a proper market, product, and business overview; identification of target users and services provided; explaining reasons for tokenization; token utilities; tokenized ecosystem participants breakdown; usage of the token and it’s value for users; incentive policy, and more.

With expertise in mathematical analysis, Zokyo Econ Lab designs comprehensive token models to maximize value and ensure sustainable growth. By scrutinizing distribution, utility, governance, and incentives, Zokyo Econ Lab identifies and capitalizes on optimization opportunities. It aims to craft robust ecosystems that drive stakeholder engagement and project resilience. This proactive approach positions blockchain projects at the forefront of the industry, ready to adapt and thrive in a rapidly evolving digital economy.

The audit process was structured in two phases: an initial report to identify areas of concern and recommend improvements, followed by a collaborative workshop with the IOTA team. The final report, post-remediation, confirmed IOTA’s compliance with the ADGM DLT Foundations 2023 regulations.

Dominik Schiener, Co-Founder and Chairman of the IOTA Foundation, said: “Zokyo was an instrumental partner in helping to navigate the new regulatory framework of the Abu Dhabi Global Market (ADGM) in the United Arab Emirates. Zokyo’s expertise and thorough processes helped a great deal in successfully getting the IOTA Ecosystem DLT Foundation registered as the first foundation under the new DLT Foundations Regulations, enabling us to start our next chapter of global expansion.”

Hartej Sawhney, Founder and CEO of Zokyo, added, “The inauguration of Zokyo Econ Lab marks a pivotal moment in demystifying the complex realm of both blockchain regulation and token modeling. Our commitment to offering bespoke compliance solutions extends beyond ADGM, as we support blockchain enterprises in dozens of jurisdictions.”

Zokyo’s collaboration with VAF Compliance, a consultancy company specializing in regulatory compliance within the blockchain and virtual asset sector, further underscores the lab’s dedication to providing superior compliance services.

Binance drops Abu Dhabi, keeps Dubai, but will Dubai drop Binance?

Binance drops Abu Dhabi, keeps Dubai, but will Dubai drop Binance?

Binance one of the biggest global crypto exchanges has withdrawn and dropped its license application with Abu Dhabi’s ADGM ( Abu Dhabi Global Market) while it retains its license application at Dubai’s VARA ( Virtual asset regulatory authority).

This comes exactly one year after Binance received a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), the international financial center of the UAE’s capital emirate.

The withdrawn license would have allowed Binance to manage a Collective Investment Fund, under conditions that BV Investment Management Limited may not hold or control Client Assets; and BV Investment Management Limited may not deal with Retail Clients as defined under the FSRA Conduct of Business Rules (COBS).

This should not be a surprise given that recently Richard Teng, Binance’s new CEO during the FT Crypto and Digital Assets Summit, would not name the location of the company’s headquarters yet admitted that Binance’s Middle Eastern headquarters is in Dubai, while its European headquarters is in France.

He suggested that the location of the global headquarters would be disclosed when deemed appropriate.

So it seems that Binance is putting all its license eggs in one basket in the UAE, with Dubai’s VARA. Some have speculated that most probably they will receive the license in Dubai and thus do not need to have one in Abu Dhabi. Yet the License in Dubai is still not in the bag.

In early December Dubai’s virtual asset regulator came out with a statement, saying that it is continuing to asses and monitor Binance activities to strict regulatory requirements, rigorous KYC and due diligence. As per VARA, Binance FZE crypto exchange currently only holds a Minimum Viable Product [MVP] Operational License with VARA, which allows them access to a restricted client base. As such to date, Binance has on boarded approximately 180 qualified investors and institutional clients.

As per Reuters, the exchange deemed it unnecessary given the reassessment of global licensing needs.

Binance’s custodial license application within ADGM is still active until May 2024.

Binance is not the only crypto exchange to have withdrawn its license in ADGM, BitOasis also withdrew its license in ADGM, as has DEX.

This comes after M2 became a fully licensed crypto exchange from Abu Dhabi UAE which can offer retail clients crypto exchange services.

UAE Crypto mining entity Phoenix Group orders $380 million of crypto mining hardware

UAE Crypto mining entity Phoenix Group orders $380 million of crypto mining hardware

UAE Crypto mining entity, Phoenix Group, which recently launched the first crypto blockchain IPO in the MENA region, has purchased $380 million of crypto mining hardware from Whatsminer.

The contract exceeding $380 million marks the largest order for Whatsminer in the last two years, underlining Phoenix Group’s dominant position in the Middle East’s tech and blockchain sector.

The agreement entails an immediate delivery of mining equipment valued at $136 million, with an additional option worth $246 million.

Phoenix Group, already partnered with and the exclusive distributor of WhatsMiner, is taking a significant leap forward by integrating hydro cooling miners in collaboration with WhatsMiner. This initiative, already underway, marks a pivotal step towards establishing world-class High-Performance Computing (HPC) data centers. The established partnership with WhatsMiner, now further enhanced by this deal, demonstrates Phoenix Group commitment to sustainable mining technologies, leading the industry towards a greener future.

Bijan Alizadehfard, Co-Founder & Group CEO of Phoenix Group PLC, shares, “This collaboration with Whatsminer is a milestone for Phoenix Group, reflecting our strategic foresight and commitment to pioneering in the tech industry. Our successful listing on the ADX has further empowered us to pursue such significant partnerships, enhancing our capabilities in the blockchain and cryptocurrency sector.”

Munaf Ali, Co-Founder & Group MD, adds, “Our partnership with Whatsminer and the development of hydro cooling technologies are key components of our vision for sustainable and innovative mining operations. These advancements are not only a leap in our technological capabilities but also align with our commitment to environmental responsibility.”

UAE Crypto mining entity, Phoenix Group, which recently launched the first crypto blockchain IPO in the MENA region, has purchased $380 million of crypto mining hardware from Whatsminer.

The contract exceeding $380 million marks the largest order for Whatsminer in the last two years, underlining Phoenix Group’s dominant position in the Middle East’s tech and blockchain sector.

The agreement entails an immediate delivery of mining equipment valued at $136 million, with an additional option worth $246 million.

Phoenix Group, already partnered with and the exclusive distributor of WhatsMiner, is taking a significant leap forward by integrating hydro cooling miners in collaboration with WhatsMiner. This initiative, already underway, marks a pivotal step towards establishing world-class High-Performance Computing (HPC) data centers. The established partnership with WhatsMiner, now further enhanced by this deal, demonstrates Phoenix Group commitment to sustainable mining technologies, leading the industry towards a greener future.

Bijan Alizadehfard, Co-Founder & Group CEO of Phoenix Group PLC, shares, “This collaboration with Whatsminer is a milestone for Phoenix Group, reflecting our strategic foresight and commitment to pioneering in the tech industry. Our successful listing on the ADX has further empowered us to pursue such significant partnerships, enhancing our capabilities in the blockchain and cryptocurrency sector.”

Munaf Ali, Co-Founder & Group MD, adds, “Our partnership with Whatsminer and the development of hydro cooling technologies are key components of our vision for sustainable and innovative mining operations. These advancements are not only a leap in our technological capabilities but also align with our commitment to environmental responsibility.”

South Korean WeMade game developer and DIFC Innovation hub to build WEMIX Play Web3 community

South Korean WeMade game developer and DIFC Innovation hub to build WEMIX Play Web3 community

South Korean game developer, Wemade, and UAE DIFC (Dubai International Financial Zone), Innovation Hub partner to build WEMIX Play web3 gaming community to support Dubai Program for Gaming 2033.

The Wemade-DIFC Innovation Hub collaboration plans to focus on core initiatives, including establishing WEMIX PLAY Center within the DIFC Innovation Hub for WEMIX PLAY. Wemade and DIFC Innovation hub will onboard game companies and facilitate the raising of $100 million Web3 gaming fund to  support the developers, studios and entrepreneurs.

Dubai is a leading business hub with advanced financial services and policies for fostering economic growth, investor attraction, blockchain, and cryptocurrency. Aided by DIFC Innovation Hub, Wemade aims to maintain close communication with UAE crypto-regulating bodies for making the Middle East business strategy as per up-to-date trends.

Wemade is also working on an application for Crypto Token Recognition from the Dubai Financial Services Authority, the DIFC’s Financial Regulator. Tokens conferred with this status will allow financial institutions in the DIFC to carry out transactions with them, to be used by over 4,900 companies in the special economic zone.

UAE Crypto mining Group Phoenix shares rise 50% on first day of trading

UAE Crypto mining Group Phoenix shares rise 50% on first day of trading

UAE based crypto mining group, Phoenix share price soared 50% as it launched on Abu Dhabi Exchange (ADX). Its share price opened at 2.25 AED on Tuesday December 5th, up from its IPO price of 1.5 AED. This is the first crypto IPO and listing in the MENA region.

The IPO raised $371 million and was oversubscribed 33 times with retail investors leading with over subscription of 180 times.

International Holding Co, Abu Dhabi’s largest conglomerate controlled by a key member of the emirate’s royal family, bought a 10% stake in Phoenix in early October.

Phoenix is also closely affiliated with the recently launched M2 regulated crypto exchange out of Abu Dhabi.

In August 2023 Oman’s Green Data City and Abu Dhabi’s Phoenix Group signed an agreement to develop a 150MW crypto-mining farm in Oman. The new farm will be set up in Green Data City was noted that it will be operational by Q2 2024, becoming one of the largest crypto-mining data centers in the region.

Abdulla Salem Alnuaimi, Chief Executive Officer of ADX, said: “The listing of Phoenix Group on our exchange not only adds to the diversity of products on our market but also signals the growing interest in the digital economy and financial technology investments in Abu Dhabi and the UAE”.

“We are proud to continue to be the exchange market of choice for tech-driven issuers and investors, as we remain committed to our mission of connecting opportunity and providing a world-class exchange market experience for all our stakeholders,” he added.

Bijan Alizadehfard, Co-Founder & Group CEO of Phoenix Group PLC, stated: “Phoenix Group’s ADX listing is a milestone for diversified technology and innovation. Our IPO symbolises a leap forward for Abu Dhabi as a nexus of digital transformation across various sectors. By blending advanced blockchain applications, strategic tech partnerships, and market-leading digital asset services, we’re proud to be part of Abu Dhabi’s Economic Vision 2030.”

Munaf Ali, Co-Founder & Group MD of Phoenix Group PLC stated: “The ADX listing of Phoenix Group is a testament to our multifaceted technological prowess. From spearheading blockchain advancements to shaping the landscape of digital finance, our presence on the exchange is a narrative of cross-industry tech innovation. As a preferred partner for government-led tech initiatives, we’re championing a future where the Abu Dhabi stands as a global beacon for sustainable and comprehensive digital economy growth.” 

This article updated November 6th 2023

Trust Wallet a self custodial crypto wallet sets up base in UAE

Trust Wallet a self custodial crypto wallet sets up base in UAE

In an interview with Bloomberg News, Trust Wallet, self-custody crypto wallet, majority owned by the former CEO of Binance has announced its operations in the UAE both in RAKDAO (Digital assets Oasis) free zone in Ras Al Khaimah and in ADGM in Abu Dhabi.

According to Eowyn Chen, CEO of TrustWallet, “Trust Wallet operates from the free trade zone of Ras Al Khaimah, where it has a business license. The zone is also known as RAK DAO, for “Digital Asset Oasis,” and caters primarily to blockchain companies. RAK has “more flexible and better corporate treatment” for web3 companies.”

Chen moved to Dubai from Virginia in October, while the company will be based in Ras Al Khaimah, the sixth-largest city in the UAE. The company has about 80 employees worldwide with about 15 per cent to 20 per cent in the UAE according to Chen.

A separate company, DApps Platform, holds the intellectual property rights for the wallet service and is based in Abu Dhabi Global Market in Abu Dhabi.

According to Chen, Trust Wallet has seen growth in India, Pakistan, and business opportunities in the UAE.

Trust Wallet is a software-based crypto wallet service designed to let users self-custody the kinds of digital assets popular in decentralized finance applications.

Globally, the app-based service has 56 million downloads on iOS and Android, making it the most popular crypto wallet for handheld devices, according to Data.ai.

In her interview Chen described regulators in the UAE as having a “friendlier outlook toward crypto in general”. That gives Trust Wallet confidence about the likelihood of “reasonable regulation on decentralized finance.”

ADGM in Abu Dhabi announced recently that it will be amending its virtual asset regulations and introducing DeFi regulations in 2024.

UAE crypto exchange BitOasis no longer a licensed entity in Abu Dhabi and is inactive in Dubai

UAE crypto exchange BitOasis no longer a licensed entity in Abu Dhabi and is inactive in Dubai

The Dubai Virtual asset regulatory authority public register continues to have UAE based BitOasis, crypto exchange on a “non operational” MVP Operational license status after a server glitch which had removed BitOasis from the registry for sometime totally today. This comes after months of BitOasis being on an inactive status, yet within Abu Dhabi’s regulatory body ADGM and FSRA BitOasis has a withdrawn its license application.

BitOasis has been working since July 2023 to fulfill select conditions associated with its Operational MVP License with respect to serving Institutional and Qualified Retail Investors, yet it seems that this is still ongoing with no change in its status to date.

BitOasis license in ADGM Abu Dhabi UAE, under the registered company name BLEX Financial limited has been withdrawn as well. In 2021 BitOasis had announced in a press release that its ADGM registered entity “had been granted a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM) and is currently working towards the migration of its operations towards launch in ADGM”, this seems to have been put to a halt.

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

At the time of investment, BitOasis was undertaking mass layoffs.

Yet CoinDCX has not sought for a license in either ADGM or VARA.

Given that BitOasis is not licensed in ADGM and its license status is non active in Dubai’s VARA registry, does that make it an illegal VASP operating in the UAE, this is especially important after the Central Bank issued its recent guidance for combating the use of unlicensed virtual asset service providers.

As per BitOasis blog, in March 2022, BitOasis received a provisional approval from Dubai’s Virtual Assets Regulatory Authority [VARA] to continue its business operations in Dubai whilst it undertakes the [in-depth] process of applying for a license in accordance with the VARA requirements. It is on this basis that the exchange is still operating today notes BitOasis.

This article has been updated as VARA website has reinstated BitOasis on their registery.