Qatar Financial Authority and Blockchain entity R3 to develop Qatar’s fintech industry with DLT and digital assets

Qatar Financial Authority and Blockchain entity R3 to develop Qatar’s fintech industry with DLT and digital assets

Qatar Financial Centre Authority and Blockchain solution provider R3 have signed an MOU to develop and grow Qatar’s fintech industry using technologies such as DLT (Distributed Ledger Technology).

As per the agreement QFC and R3 will work together to create a potential lab environment that caters to commercial banks and fintech in Qatar. The partnership also aims to promote education and training on asset digitization and the use of (DLT). The two organizations will also create working groups to observe new and emerging regulatory paradigms and support the QFC’s deployment of DLT at national level.

Yousuf Mohamed Al-Jaida, Chief Executive Officer of QFC, said, “We are pleased to partner with R3, a renowned financial technology company, to explore opportunities that will contribute to the growth and success of the financial technology industry in Qatar. Through this collaboration, we aim to foster innovation and create an environment that supports the growth of fintech companies in Qatar.”

David E. Rutter, Chief Executive Officer and Co-Founder, R3, added “We are delighted to work with the QFC in helping to enhance Qatar’s rapidly growing fintech industry and promote exciting initiatives around asset digitalization and DLT. The QFC is already making great progress in expanding the development of fintech in Qatar, and this collaboration will further help create an environment conducive to innovation. We look forward to using our experience and expertise to assist the QFC in supporting the growth of Qatar-based fintech companies.”

Qatar has been moving forward with its blockchain strategy after Qatar’s National Blockchain Blueprint which was announced officially, by Qatar Communications Regulatory Authority.  In addition, two blockchain announcements have come out of Qatar demonstrating that the Gulf country is starting to utilize and grow DLT (Distributed Ledger Technologies) and Blockchain.  The first is the piloting of digital signatures and certificates to be validated on Qatar’s national blockchain network and the second is the inclusion of DLT in Qatar’s Central Bank Fintech strategy.

Additionally, even R3 is working with more governments in the GCC on blockchain enabled projects such as the recent announcement with UAE Central Bank for CBDC project.

R3 was chosen by UAE Central Bank as its technology partner to design and build a CBDC for the first phase of the central bank’s CBDC project because it is a permissioned based DLT (Distributed Ledger Technology) that decentralize assets privately and works well in regulated industries, but more importantly is its interoperability and asset fluidity. R3 will not only assist UAE’s Central Bank in developing a CBDC but also in tokenizing financial and non-financial activities, in addition to the digitalization of other financial services.

UAE YallaMarket to use Binance and IvendPay for crypto payments

UAE YallaMarket to use Binance and IvendPay for crypto payments

YallaMarket, a Dubai grocery delivery service has announced it intends to embrace crypto payments and utilized Binance Pay and IvendPay for their solution. 

Leo Dovbenko, CEO and co-founder of YallaMarket and YallaHub, commented: “YallaMarket and YallaHub are based in the UAE, a global hub of financial technology, so we couldn’t stand aside. Moreover, our product development strategy is focused on our customers’ evolving demands. Thanks to Binance and ivendPay, we will be able to stay agile, adopt new payment technologies, and focus on providing the best customer service possible.” 

Cryptocurrency payments offer many opportunities for businesses and users alike. As more merchants and consumers adopt this method of making everyday purchases, we will see continued growth and innovation in this space.

This comes after Binance onboarded international payment service ivendPay, as a global cryptocurrency payment gateway for Binance Pay – a contactless, borderless, and secure user-to-user cryptocurrency payment feature on the Binance App.

The partnership will contribute to making cryptocurrencies an even bigger part of users’ everyday life, further extending digital assets’ real-world utility and making payments easier and more accessible. Binance users can now make purchases at all locations of IvendPay’s international network with their crypto.

ivendPay is an international payment service that allows businesses to accept cryptocurrency payments through point-of-sale (POS) terminals, mobile apps, e-commerce platforms, API, and vending machines. Currently, the service operates in seven countries with some 400 active merchants, and the number of new sales points continues to grow weekly.

Pakning Luk, Binance Pay’s regional head of business development, said about the partnership: “We’re more than excited to announce ivendPay as a strategic payment partner as their solutions help both online and offline merchants make users’ payment experience seamless.” 

UAE Based VAF Compliance democratizes crypto compliance with telegram bot

UAE Based VAF Compliance democratizes crypto compliance with telegram bot

UAE based VAF Compliance, a virtual assets and fintech compliance firm has launched a telegram bot service that assesses the risks associated with accepting cryptocurrency as payment.

VAF Compliance’s Telegram Bot can help individual clients and small businesses avoid situations where they may unknowingly accept tainted funds. With this service, VAF Compliance aims to democratize access to AML solutions to all users, who now can assess risks before accepting crypto, receive a clear and user-friendly report, understand the risks associated with interacting with other wallets, and prevent the receipt of crypto with criminal origins.Crypto exchanges, the entry point to cryptocurrencies, are particularly vulnerable to compliance issues. To maintain compliance, the implementation of robust Know Your Customer (KYC) and Anti-Money Laundering (AML) policies is essential.

While recent sanctions against entities providing money laundering services to criminals have had a positive impact, alternative money laundering services may still be found, highlighting the need for robust KYC and AML policies in the crypto industry.

The bot is now available in English and Chinese (Mandarin) and will cover over 45 blockchains. It also provides an easy-to-read report to understand the risk level prior to accepting any funds in the user’s wallet. 

 In addition, users have the option to pay fees per report or package, and if they refer the service to others, they can receive free reports that cover more than 70 different risk parameters.

“We are very excited to launch our newest solution, the VAF Compliance Bot service, which provides an easy-to-use, yet comprehensive solution for individuals and small businesses looking to navigate the complex world of crypto compliance,” said Gilson Ribeiro Da Costa, CEO of VAF Compliance.

“We believe our innovative solutions will help our clients achieve their compliance goals, while also enhancing the overall reputation and credibility of the crypto industry.”

Not only does the company offer support to clients in the MENA region, but it also extends its services in countries such as Turkey, Africa, and Europe. In fact, the company has announced its expansion to Switzerland and the establishment of its office in Zug. The team will be led by Farzaad Gaibie, a seasoned financial services consultant with extensive industry knowledge and experience.

The expansion to Zug will enable VAF Compliance to better understand the needs of its clients and offer tailored solutions that meet their unique requirements.

UAE and USA based C1 Investmet advisors launch $500 million Crypto, blockchain, digital assets fund

UAE and USA based C1 Investmet advisors launch $500 million Crypto, blockchain, digital assets fund

UAE and USA based C1 Secondary’s Fund managed by C1 Investment Advisors LLC, a team of international entrepreneurs and investors, have announced a $500 million investment fund targeting secondary’s in blockchain, crypto, Web3, and Fintech entities.

Secondary funds, commonly referred to as secondaries or continuation transactions, purchase existing interests or assets from primary private equity fund investors. For example, a primary private equity fund may purchase a stake in a private company, and then sell that interest to a secondary buyer.

The C1 Secondary’s Fund is a regulated private investment fund formed for the purpose of investing in secondary’s asset acquisition – the purchase of shares in existing private growth companies. 

 The C1 Fund portfolio focuses on digital assets, blockchain technology and applications, cryptocurrency services (not direct investment in cryptocurrencies), Web3 financial applications, and advanced FinTech.  Sample target company applications include digital assets and cryptocurrency exchanges, payment systems and/or related financial services companies, including wallets, custodian-services, lending, and decentralized finance.

The Fund will invest across multiple geographies but with a focus on secondary’s investments in international markets, especially those with strong and/or growing regulatory regimes.

The C1 Secondary’s Fund is led by Dr. Najamul Kidwai, Co-Founder and Managing Partner, Michael Lempres, Co-Founder and Managing Partner, Michael (Xu) Zhao, Co-Founder and Managing Partner, David Hytha, Co-Founder and Partner, and Cheriyl Lakshmy, Co-Founder, Director of Research and Operations.

The C1 team recently founded and led the successful initial public offering of Crypto 1 Acquisition Corp $230M raise.

C1 Secondary’s Fund Co-Founder and Managing Partner Dr. Najam Kidwai stated, “Despite the so-called Crypto reset, investment in Digital Assets and Crypto-related services continues to grow rapidly.  At its core this is the next digitization of finance”.

The C1 Secondary’s Fund will focus on companies operating under significant regulatory frameworks. Co-Founder and Managing Partner, Michael Zhao stated “the regulated route is the only route for any crypto company’s growth if it wants to be a serious player for the long run. Long gone are the days when digital asset players enjoyed an early-mover advantage and benefited from a fast-growing bull market. Recent crypto market turbulence is just another example that shows why the market needs proper risk control and compliance; we are focused on these companies.”

UAE SEED group partners with two new Blockchain Web3 entities

UAE SEED group partners with two new Blockchain Web3 entities

Over the years, UAE SEED Group has partnered with several or more blockchain and crypto entities as part of its business development activities for the region. Recently SEED Group has partnered with Canadian Blockchain Web 3.0 metaverse company TerraZero technologies, as well as with Farm to Plate , a blockchain-powered SaaS platform built to empower the food supply chain with end-to-end transparency and trust.

 As part of the partnership with TerraZero, Seed Group will help bring its services to SMEs and businesses in the UAE and the Middle East and help them make inroads into the high-potential world of Metaverse.

In reflecting upon the partnership, Hisham Al Gurg, CEO of Seed Group and the Private Office of Sheikh Saeed bin Ahmed Al Maktoum, states, “The Metaverse will become an integral part of all businesses sooner than we realize. The launch of the Dubai Metaverse Strategy was a major step in the direction of turning Dubai into one of the world’s top 10 Metaverse economies as well as a global hub for the Metaverse community. Our partnership with TerraZero seeks to further empower this aim of the emirate. I believe the association will prove fruitful to not just businesses in the UAE but to the regional economic ecosystem on the whole.”

“It is clear where innovation is taking place when it pertains to the future of the Internet and the Metaverse. This is a monumental moment for the industry, and TerraZero sees massive growth potential. Our partnership with the Seed Group will empower the next generation of enterprise businesses and brands to monetize and progress their ecommerce and omnichannel strategies, just as much as we can open the door for legacy corporations and government entities to meaningfully connect with their audiences–and create new ways to build equity in all forms,” says TerraZero CEO Dan Reitzik.

In addition Seed Group onboarded Farm to Plate as its new strategic partner, with an aim to help and guide it to bring its solutions to the UAE and the region. Seed Group will facilitate Farm to Plate’s growth with guidance on how to reach the right audience, access top decision-makers in the government as well as private sectors, and contribute to adding the latest technological innovations in the region.

Farm to Plate is transforming how the food and beverage industry operates through a digital platform that empowers stakeholders to better manage their food supply chain – with visibility from farm to plate. Built by global software developer Paramount Software Solutions, one of the top award-winning tech companies in Atlanta, the Farm To Plate platform uses emerging technologies like Blockchain to work with customers’ existing software assets and provide customisable, secure, web-based visibility of the food and beverage supply chain. With Farm to Plate, stakeholders now have one view of their entire chain of supply – eliminating any chances of data fudging or misalignment. At the same time, the use of blockchain ensures direct financial transactions, secure data management and access controls – creating a truly secure digital ecosystem.

R3 to design and Build UAE’s CBDC as well as tokenize financial and non financial activities

R3 to design and Build UAE’s CBDC as well as tokenize financial and non financial activities

R3 was chosen by UAE Central Bank as its technology partner to design and build a CBDC for the first phase of the central bank’s CBDC project because it is a permissioned based DLT (Distributed Ledger Technology) that decentralize assets privately and works well in regulated industries, but more importantly is its interoperability and asset fluidity. R3 will not only assist UAE’s Central Bank in developing a CBDC but also in tokenizing financial and non-financial activities, in addition to the digitalization of other financial services. 

R3 offers interoperable CBDC solution

LaraontheBlock interviewed R3 to learn more about their role in UAE’s CBDC project.  Alisa DiCaprio, Chief Economist at R3 when asked why R3 was chosen and not another Blockchain technology provider replied, “R3’s Corda is the world’s leading permissioned distributed application platform and is specifically designed to work in highly regulated environments with today’s financial services industry. Corda powers solutions that decentralize assets while maintaining privacy and regulatory oversight, making it a favored technology for central banks looking to issue CBDCs.”

She added, “Its interoperability and asset fluidity means that central banks can move digital currencies openly and freely across network boundaries, using well-defined trusted exchange protocols that meet regulatory demands for privacy and security.” 

This is not the first CBDC project that R3 has participated in. DiCaprio explains, “ R3 has been chosen as the technology partner for numerous CBDC projects, including: Digital Tenge, where the National Bank of Kazakhstan is currently leveraging R3’s Corda for Digital Tenge CBDC project, to test the concept’s feasibility and determine the main parameters of the digital currency model. The Digital Tenge platform recently underwent successful testing with real consumers and merchants in cooperation with market participants. The DT’s entire life cycle (including the programmability and demonstration of the offline transactions chain) was tested.” 

Another project being worked on by R3 is Project Icebreaker, The Bank for International Settlements and the central banks of Israel, Norway and Sweden concluded Project Icebreaker this month, which studied the potential benefits and challenges of using retail CBDCs in international payments. 

According to DiCaprio CBDCs can strengthen financial market infrastructures in several ways. She explains, “CDBCs offer more efficient cross-border payments, faster settlement time periods and the streamlining of multi-party processes, so we’re excited to continue supporting central banks as their respective CBDC journeys.” 

As for why R3 was chosen, one of the most important reasons was the ability to facilitate interoperability and the exchange of data and assets across networks. As per DiCaprio, the platform is exploring ways to act as a bridge to various other platforms outside of the Corda ecosystem. This enables assets to move freely across networks while still maintaining privacy in the decentralization process. 

For Dicaprio interoperability is a critical development and a core focus at R3 to increase reach for users’ assets, minimizing friction with no sacrifice to safety. She adds, “By achieving this, we will be able to connect with other DLT players to provide the most seamless experience for our customers.” 

DiCaprio adds that R3 has seen a growing interest in CBDCs in the region given the region’s rising stature as a global fintech hub. This was appreciated during their partnership with UAE Central Bank. She stated to LaraontheBlock, “We look forward to seeing central banks across the world continue to explore and develop CBDCs and realizing the benefits they can bring to our financial ecosystem.”

R3 readies UAE for Tokenization

The Central Bank of UAE announced on March 23rd 2023 that it had commenced the implementation of its CBDC strategy in partnership with technology entities, UAE based G42 Cloud and Blockchain global solution provider R3. R3 then followed this with its own press release on April 4th 2023 explaining on the UAE Central Bank CBDC project including as well Clifford Chance who will be providing critical legal oversight for the strategy.

R3 in their press release stated that R3’s technological support will enable the Central Bank of UAE to ensure the readiness of the UAE for the potential future tokenization of financial and non-financial activities, in addition to the digitalization of other financial services.

Digitization in UAE

Parties that will be working with the UAE Central Bank CBDC project all agree that the project is part of a wider strategy for digitization in the UAE.

David E. Rutter, CEO at R3, commented, “This is another landmark moment in bringing CBDCs even closer to production and issuance. CBDCs can strengthen our financial market infrastructure in several ways, including more efficient cross-border payments, faster settlement time periods and the streamlining of multi-party processes. The CBUAE has made a significant step forward in realizing these benefits. We are honored and excited that R3 has been selected to design and build CBUAE’s CBDC ecosystem in this innovative move towards building a more open, trusted, and enduring digital economy. We look forward to supporting the CBUAE in the next stage of its CBDC journey.” 

While Talal Al Kaissi, CEO at G42 Cloud, stated, “We’re thrilled to be supporting the CBUAE in the development of its digital dirham. This collaboration represents an important milestone in the digitalization of the UAE’s monetary and payments framework and ensuring that the country remains at the forefront of financial services innovation. As a company founded in the UAE, we have seen first-hand the country’s rapidly advancing status as a global fintech hub and are excited to be working with the CBUAE in leading its digital transformation. We look forward to working with the Central Bank and R3 to deliver a cutting-edge CBDC infrastructure that meets the highest standards of efficiency, security, and innovation.”

While Jack Hardman, Partner at Clifford Chance and Head of Fintech in the Middle East added, “As CBDC development moves from research to real-life building, it is vital that central banks are aware of the legal implications of any chosen design feature or strategy, in addition to how this emerging technology interacts with existing regulations. Clifford Chance has an established track record as a leading advisor in the fields of financial services and technology, and we look forward to working with the CBUAE on its CBDC implementation strategy.”

As per UAE Central Bank, the first phase of the CBDC strategy will be completed within the next 15 months. It will include a soft launch of MBridge to facilitate real value cross border CBDC transactions for international trade settlement, proof-of- concept work for bilateral CBDC bridges with India, one of the UAE’s top trading partners and finally, proof-of-concept work for domestic CBDC issuance covering wholesale and retail usage.

The UAE Central Bank views the UAE CBDC as able to address the pain points of domestic and cross-border payments enhance financial inclusion and the move towards a cashless society. It will further strengthen the UAE’s payment infrastructure, providing additional robust payment channels, ensuring a resilient and reliable financial system. More importantly, the CBUAE aims to ensure the readiness of the UAE to integrate the payment infrastructures with the future potential tokenization world, the tokenization of the financial and non-financial activities. 

H.E. Khaled Mohamed Balama, the Governor of the CBUAE, stated at the time, “CBDC is one of the initiatives as part of the CBUAE’s FIT program, which will further position and solidify the UAE as a leading global financial hub. The launch of our CBDC strategy marks a key step in the evolution of money and payments in the country. CBDC will accelerate our digitalization journey and promote financial inclusion. We look forward to exploring the opportunities that CBDC will bring to the wider economy and society.” 

The Central Bank of UAE stated that it was now ready to enter into the next major milestone of its CBDC journey after several successful CBDC initiatives including project Aber with Saudi Central Bank in 2020, and the accomplishment of the first real-value cross-border CBDC pilot under the “mBridge” Project with the Hong Kong Monetary Authority, the Bank of Thailand, the Digital Currency Institute of the People’s Bank of China and the Bank for International Settlements in 2022.

TripBtoz signs MOU to build Blockchain enabled travel platform in MENA

TripBtoz signs MOU to build Blockchain enabled travel platform in MENA

Web 3.0 travel TripBtoz to develop has signed an MOU with NEOPIN a CeDeFI wallet platform to build a Web 3.0 blockchain enabled based travel platform in the MENA region.

Tripbtoz is a travel platform based on user-created short-form video content. Beyond simple travel commerce, Tripbtoz offers features such as a “community” for sharing travel videos and a “reward system” in the form of “trip cash”. These features have formed a positive travel cycle, resulting in rapid growth in total revenue, monthly active users (MAUs) and user-generated content since the platform’s launch in 2017.

The two entities, NEOPIN, a CeDefi wallet solution and Tripbtoz, established a connection as officials of the business delegation that accompanied the Korean government’s economic summit in UAE, decided to collaborate on a Web3.0 project based in the Middle East.

This is the first incubation project in which NEOPIN supports the web3 transition of a web2 tech company. NEOPIN will help translate Tripbtoz’s existing travel platform into a Web 3.0 version that will showcase the “Travel Web3.0” ecosystem for young travellers to communicate. 

Jake Kim, the CEO of NEOPIN, stated that as NEOPIN participates in the incubation and supports Tripbtoz’s Web3.0 translation, we aim to turn the service into a successful Web3.0 travel platform by leveraging both companies’ experience in blockchain and the travel industry.

Jiha Jung, the CEO of Tripbtoz, stated, “The travel industry is in a big transition period, with lines blurring between the real world and metaverse. We want to create Tripbtoz to excite its customers with high-performing ‘Travel to Earn’ service that is perfectly suitable for Web 3.0.” He also added, “The combination of travel and future tech will disrupt the existing ecosystem, eventually creating a new form of industry.”

UAE based DWF Labs invests $1 million in Blockchain music Korean firm

UAE based DWF Labs invests $1 million in Blockchain music Korean firm

DWF ( Digital Wave Finance) Labs a crypto investment firm, based out of UAE, has invested $1 million into LABEL Foundation, a Korean Based blockchain entity revolutionizing the music industry. 

The investment will be used to foster the development of their pioneering Dapp TRACKS and to expand their user base by bringing innovative solutions to the market. This is the third round for LABEL Foundation. Previously it raised funds from eBest Investment & Securities and Groom investments. This allowed LABEL to launch their Listen and Earn TRACKS decentralized application. 

LABEL believes that this revolutionary application has enormous prospects not just for artists but also listeners who want to contribute to the revenue flow of music and help make this sector more profitable

DWF Labs Managing Partner Andrei Grachev conveyed his enthusiasm for LABEL Foundation’s quest to promote innovation in the music business, stating “Their Listen-and-Earn TRACKS dApp is an exciting opportunity that has the potential to change the way music is created, shared, and monetized”. 

LABEL Foundation CSO Hyungsoon Choi also stated, that for them, this investment is not just about expanding their user base or bringing innovative solutions to the market, it’s perhaps about getting closer to creating a more equitable profit-sharing economy that includes permissionless IP rights application, monetization of music rights, and direct interaction between fans and artists.

DWF Labs is the multi-stage Web 3.0 investment firm. The investment firm is an affiliate of Digital Wave Finance (DWF) which has consistently maintained its position among the top 5 trading entities by volume in the crypto space thanks to its proprietary technology for high frequency trading. It has offices in Singapore, Switzerland, the UAE, Hong Kong, South Korea, and even the British Virgin Islands.

KSA working on policy decision to define different virtual asset types

KSA working on policy decision to define different virtual asset types

During the Financial sector conference 2023 in Riyadh KSA, Mohsen Al Zahrani, Virtual assets and CBDC Program Director at Saudi Arabia’s Central Bank, told Anna Tutova, CEO of Coinstelegram media platform when asked about the regulation of cryptocurrencies in the country, that there is a current forum looking into  that, yet no policy decision has been made yet on different virtual asset types.

He noted in his reply during a panel discussion on CBDC, public money in the digital age, “We are working on a policy decision with the Saudi Central Bank and other relevant governmental agencies.”

KSA appointed AlZahrani in September 2022 to lead the virtual assets and digital currency program at the Central Bank.  In January 2023, The Saudi Central Bank (SAMA) confirmed that the Central Bank is continuing to experiment on Central Bank Digital Currencies (CBDC).  SAMA is currently working on a project that focuses on domestic or national wholesale CBDC use case in collaboration with local banks and FinTech’s. Experts explained to LaraontheBlock that this is a CBDC for local wholesale bank settlements.

During the 2023 World Economic Forum’s session on Financial Institutions innovating under pressure, the Saudi Arabian Minister of Finance Mohammed Al Jadaan states that while CBDCs have privacy issues they are fantastic tool in developing countries.

Prior to this KSA had engaged in a pilot with UAE on CBDC Aber project for cross border wholes sale CBDC transactions utilizing Hyper Ledger Fabric at the time.

Kucoin cryptocurrency exchange revealed in a report published in July 2022 “ Crypto Verse Report on adoption of digital currencies in Saudi Arabia” that 3 million Saudi Arabians are crypto investors who currently own cryptocurrencies or have traded in past six months. This means 3 million out of an adult population of 21 million or 14 percent currently own cryptocurrencies.

The survey also found that another 17 percent of adult population surveyed, was crypto curious and are likely to invest in crypto in the next six months. This would be imply that by the end of 2022, 31 percent of Saudi adult population or 6.6 million will be trading or owners of cryptocurrencies.