Dubai virtual asset regulator calls on more than 1,000 firms to finalize applications in ten days

Dubai virtual asset regulator calls on more than 1,000 firms to finalize applications in ten days

Dubai’s Virtual Assets Regulatory Authority (VARA) announced that while more than 1,000 legacy firms have filed applications to register under Dubai’s unique regulatory framework, underscoring the city’s commitment to fostering a transparent and resilient virtual asset environment, these firms need to complete their applications in ten days, by November 17th 2023.

As per the press release, following the inception of the Authority by Law No. 4 of 2022 and the issuance of VARA regulations in February 2023, Dubai’s Virtual Assets sector, which includes specialist Virtual Asset Service Providers (VASPs) and traditional businesses involved in Virtual Asset activities, became a part of a regulated sector requiring all such legacy operators in the Emirate of Dubai to obtain licenses or registrations under VARA

Further to substantive outreach efforts facilitated in collaboration with the Department of Economy and Tourism (DET) and the Dubai Free Zone Council (DFZC) through 2023, VARA’s dedicated licensing team have successfully rolled out an accelerated domestic outreach program.

Dubai’s Virtual Assets Regulatory Authority (VARA) is advancing its engagement with the virtual asset market to evaluate compliance with its set regulations, emphasizing the obligatory licensing for all Virtual Asset Service Providers (VASPs) in the Emirate. Firms lagging in their application processes have until 17th November 2023 before enforcement mechanisms are due to be triggered by default.

As such VARA is calling on VASPs that have yet to submit the applications, have missed the notifications from their commercial licensing authorities, or have submitted incomplete forms to proactively get in touch, to avoid unintended regulatory consequences.

In recent months VARA has been issuing various market alerts. In its most recent alert it called to attention the media coverage regarding Bitay’s supposed entry into the UAE market, showcasing that unless they have secured approval or regulated by VARA or any other regulatory authority in the UAE. Prior to that it issued a notice with regards to Islamic Coin.

As per VARA, according to Cabinet Resolution No. 111/2022 advises the market to not engage with unregulated VASPs. VARA reaffirmed that Bitay is not regulated by VARA and has not sought to otherwise be registered with VARA.

This latest announcement by VARA comes after the UAE  National Anti-Money Laundering and Combating Financing of Terrorism and Financing of Illegal Organizations Committee (NAMLCFTC), in collaboration with UAE supervisors, has issued guidance on combating the use of unlicensed virtual asset service providers, which is prepared by the supervisory subcommittee.

The guidance, which aims to educate licensed financial institutions (LFIs) and the wider public sector on the risks associated with unlicensed virtual asset service providers, has been issued pursuant to the Decree Federal Law No.20 of 2018 on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) and Illegal organizations. It aligns with the Financial Action Task Force (FATF) publication on updated guidance for a risk-based approach to virtual assets and virtual asset service providers.

The guidance provides the reporting entities, including LFIs, Designated Non-Financial Businesses and Professions (DNFBPs), and Licenced Virtual Asset Service Providers (VASPs), with a comprehensive roadmap to enhancing their governance and operational processes. It also highlights how to identify and address governance challenges and emerging risks, underlining the importance of compliance with regulatory obligations under AML legislation and the regulations, instructions, guidelines, notices, and rules issued by the Supervisory Authorities.

The guidance directs the reporting entities to consult the FATF Report on Red Flag Indicators of Money Laundering and Terrorist Financing regarding Virtual Assets. It specifically requires them to remain vigilant of the various fraudulent methods unlicensed VASPs adopt; continue to manage money laundering, financing of terrorism, and proliferation financing risks effectively; ensure emerging risks are factored into their business and customer risk assessments; and ensure due diligence is conducted to identify instances of forged documents and sanctions evasion.

As per the guidance, VASPs operating in the UAE without a valid license will be subject to civil and criminal penalties, including, but not limited to, financial sanctions against the entity, owners, and senior managers. Furthermore, reporting entities that demonstrate willful blindness in their dealings with unlicensed VASPs and have weak AML/CFT and Counter Proliferation Financing controls may be subject to enforcement action.

Khaled Mohamed Balama, Governor of the CBUAE and Chairman of the NAMLCFTC, said, “The new guidance on combating the use of unlicensed virtual asset service providers comes at a time when virtual assets become more accessible through digital channels. As our digital economy matures, our work on combating all kinds of financial crimes intensifies through raising awareness of their risks and emphasising the importance of compliance with relevant regulations and legislation to ensure the integrity of the UAE’s financial system.”

VARA to license 15 entities by end of 2023, and launch DeFi regulations, Gamefi, and crypto derivatives

VARA to license 15 entities by end of 2023, and launch DeFi regulations, Gamefi, and crypto derivatives

In a recent LinkedIn post, Soham Panchamiya, Associate for tech companies and regulatory disputes at Reed Smith, one of the leading global law firms with more than 1,500 lawyers in 30 offices throughout the United States, Europe, the Middle East and Asia, announced that they are expecting Dubai Virtual Asset Regulatory Authority (VARA) will fully license 15 entities before the end of 2023.

According to Panchamiya, “New developments continue to come forward in the UAE VARA in Dubai is making great strides to earn its stripes as the premier regulator for crypto and Web3 companies in the world.”

He also expects major announcements and change for game-fi, DeFi and crypto derivatives.

So far Dubai VARA has already fully licensed four crypto exchange, brokerage, and custodial firms. Most recently is BackPack exchange, TOKO, received full crypto exchange licenses, while Komainu received full crypto custodial and custody staking services. VARA was one of the first regulators globally to issue crypto staking regulations.  The fifth license was given to Laser Digital for crypto broker and investment services.

On VARA’s register listing are 11 entities that have either received a full license or at the MVP preparatory or operational phase. These include names such as Bybit crypto exchange, Binance, OKX, crypto.com, GCX exchange, as well as Hextrust crypto custodian. Meanwhile, BitOasis license is still inactive, after it had received MVP operational license.

There are others who have received preliminary approval not listed on VARA website.

Given the current numbers, VARA will be licensing 11 more entities before the end of the year.

In August 2023, the Dubai Department of Economy and Tourism and Dubai VARA signed an MOU to unify VASP (virtual asset service provider) offering in the city. The two entities are collaborating to offer a synchronized VA market assurance across the Emirate of Dubai –spanning Customer Care + Complaints; [Business] On-Site Inspection + Enforcement; [Business] VASP Registration + Licensing; [G2G + G2B + G2C] Education-Training-Knowledge Sharing.

During DACOM (The Digital Asset Compliance and Market Integrity Summit) hosted by Solidus Labs, a crypto-native market surveillance and risk monitoring hub tailored for digital assets, in Abu Dhabi in May  2023, Henson Orser CEO of VARA stated, that the future will include tokenization of real world assets, including real estate, as well as micro financing, royalty rights for creators and publishers, with smart contracts for movies /music, permissioned DeFi (Decentralized Finance), gaming and the metaverse. Here he sees, “A billion users will start to challenge the boundaries of title and value” and finally interoperability, transfers identity and more.

Furthermore in an exclusive LaraontheBlock interview with Henson Orser, discussing VARA stated that while the term DeFi is not specifically referenced in the 7 Rulebooks from VARA, DeFi lies very much at the core of Dubai’s Future Economy considerations. Orser explained that VARA’s Rulebooks have focused on facilitating borderless ‘value-exchange’ both in the traditional and new economy contexts, by leveraging a full spectrum of cross-cutting ‘activities’, which should not in any way be construed as TradFi specific.

He stated, “We are well aware that in this sector new technologies and products will be continually emerging, and constructively challenging traditional financial systems. It is exactly for this reason that VARA has been constructed as a technology agnostic and product-neutral framework that allows us to remain progressive and future-focused.  This means that our regime will provide for R&D sandboxes to test, learn and evolve prototypes across DeFis and DAOs today, to wider innovations across Metaverse and Web3.0. As we have maintained, the VARA Regulations will strike a measured balance between remaining agile so we benefit from future waves of technological innovations, yet being definitive in their ability to provide the required market certainty, FATF assurances, and cross-border security which are non-comprisable to us.”

In September 2023, VARA updated its virtual asset rulebook and added new regulations with regards to what it calls Fiat referenced virtual asset ( FRVA) better known to most as virtual assets pegged to a stable value, or stablecoins.

Prior to that VARA opened the door to regulate crypto staking services with its revised Custody Services Rulebook, allowing staking by virtual asset custody Service providers. As per the revised rule book, virtual asset service providers who carry out custody services can offer staking services as well without obtaining a separate license for VA Management and Investment Services. Additional licensing and supervision fees will be payable in connection with the provision of this additional service.

As per Panchamiya in his post, he states, “Not a bad start. It remains to be seen how viable the industry sector is going to be moving forward as the continuance of the bear market dampens spirits worldwide, but with the spot ETF movements in the US, the recent wins in courts and the continued regulatory developments, it seems that market players and UAE regulators are bullish.”

BackPack XNFT wallet receives regulated crypto exchange license in UAE

BackPack XNFT wallet receives regulated crypto exchange license in UAE

BackPack Web3 non custodial XNFT wallet has received a full license by Dubai Virtual asset regulatory authority allowing it to run a regulated crypto exchange in UAE. BackPack,which was considered one of top 30 best crypto wallets in 2023 was developed by Coral. It offers XNFTs built on Solana Blockchain.

Backpack Exchange is set to launch in private beta for its community members in November before going live to the public in Q1 2024. UAE based Trek Labs Ltd FZE, will launch under the name Backpack Exchange. This license only covers Backpack Exchange and not any of the other virtual asset products and services offered by Backpack.

xNFTs are a different type of non-fungible token, that combine use cases of NFTs and applications in one asset. xNFT stands for executable non-fungible token, meaning it is a unique digital item that can run code inside it.

The XNFT is new, programmable non-fungible token (NFT) standard that act as Web3 applications, built on Solana by the developers at Coral which is part of The WAO Company. xNFTs allowing users to interact with their NFTs and use them for more than just collectibles on the blockchain. Their unique feature is to enable applications to run natively inside the NFT. For example, an xNFT lets users play a game, listen to music, or access a DeFi protocol, all within one open, programmable system built for Web3. You can also have a xNFT that updates itself based on external data or events.

The combination of Backpack Exchange and Backpack Wallet (which is currently an unregulated product) is designed to provide the smoothest transition for users from fiat to on-chain applications. While Backpack Wallet users already have access to a variety of dApps and executable NFTs (xNFTs) unique to Backpack, they will now be able to conduct trades on the exchange directly in the app.

Coral is also the company behind Mad Lads which is the Number 1 NFT collection on Solana. Backpack’s CEO and founder, Armani Ferrante, managed to navigate the challenges posed by the collapse of FTX, after which Coral lost approximately $14.5 million of FTX’s investment in a $20 million funding round backed by FTX Ventures.

Over the past five months, Backpack Exchange has developed a next-generation exchange that incorporates a novel zero-knowledge proof of reserves (zk-proofs), Multi-Party Computation (MPC) for custody, and low latency order execution, while also securing licenses in several jurisdictions worldwide and establishing premium fiat on and off ramps for users.

A VARA Spokesperson noted, “Dubai’s VA sector is fully regulated and VARA’s founding principles have been anchored on the need to structure guardrails for market security while remaining progressive and responsive to innovation. To this end, the licensing process is rigorous in its evaluation of suitably qualified ‘responsible’ participants that can serve as the UAE’s bar for convergence across global jurisdictions. In keeping with Dubai’s repute as a preferred global hub for entrepreneurship, Backpack Exchange must be recognized for their commitment to prioritize investor protection and risk assurance, and VARA appreciates their readiness to fulfill necessary prerequisites that has made them among the first VA exchanges to secure a full market license within the VARA regime”.

Armani Ferrante, CEO and Founder of Backpack, stated: “It’s time to put an end to the days of opaque crypto exchanges representing everything our industry stands against. It shouldn’t be normal to use an exchange with a single point of failure, without proof of reserves, or without auditability. A verifiable, unforgeable ledger is the exact problem blockchains solve, and Backpack Exchange is taking full advantage of that. Using cryptographic techniques like zk-proofs, MPC, and state machine replication, Backpack Exchange hopes to raise the bar for transparency and compliance to demonstrate the best this technology has to offer. Don’t trust, verify.”

Backpack Exchange will launch in private beta for existing Backpack and MadLads community members this November. The beta will feature spot crypto trading functionality. The exchange is set to go live to the public in Q1 of 2024. The Backpack Exchange team will be working to add in various trading functionalities such as derivatives, margin, cross-collateral while its compliance team, with decades of experience from Barclays, State Street, HSBC, Coinbase, and other prominent financial institutions continues to secure additional licenses around the world.

Blockchain settlement entity WadzPay receives initial regulatory approval in UAE

Blockchain settlement entity WadzPay receives initial regulatory approval in UAE

WadzPay has been granted “Initial Approval” by Dubai’s Virtual Assets Regulatory Authority (VARA), marking a pivotal step in Wad pay’s journey towards obtaining a Virtual Asset Service Provider (VASP) License for virtual asset services and activities.

“We are immensely honored to have received initial approval from VARA,” said Mr. Anish Jain, Founder and Group CEO of WadzPay. “This recognition reaffirms our commitment to delivering cutting-edge blockchain-based solutions that not only revolutionize but also adhere to the highest regulatory standards. We are grateful for the opportunity to contribute to the growth of the fintech ecosystem in the UAE.”

This Initial Approval is a key milestone and allows WadzPay to commence preparations for the provision of virtual asset services and activities under the VASP License for Transfer & Settlement and Broker/Dealer activities.

“Receiving VARA’s initial approval is a testament to our unwavering dedication to regulatory and compliance excellence,” said Mr. Khaled Moharem, President – MENA at WadzPay. “We’ve built a robust ecosystem that not only meets but exceeds industry standards, guaranteeing a safe and efficient gateway to virtual assets for users in the UAE. We’re poised to launch with strict adherence to VARA’s requirements, ushering in a new era of secure and seamless access to the world of virtual assets.”

While the initial approval is a pivotal achievement, WadzPay emphasizes that it is still in the process of working towards receiving the final approval from VARA and the VASP license. This progression marks a crucial step towards obtaining the necessary regulatory green light to fully operate within the UAE and bring its innovative products and solutions to life.

Prior to this WadzPay Founder Anish Jain had announced that WadzPay had made strides on the licensing front and are in the “final stages”. In addition he added that WPC token would be listed on a Tier1 regulated exchange in the Middle East.

WadzPay, an interoperable blockchain-based technology provider, had also launched the WadzPay 2.0 which it believes will redefine the landscape of virtual asset-based transactions. WadzPay 2.0 provides a unique new architecture primarily based on the Algorand blockchain with inbuilt support for several others such as Ethereum, Tron, Avalanche and several others to be added. WadzPay 2.0 construct is designed in line with evolving regulations and needs of banks, financial institutions, telcos and central banks.

The Hashgraph Association at Gitex 2023 Showcases stablecoin studio as UAE issues stablecoin regulations

The Hashgraph Association at Gitex 2023 Showcases stablecoin studio as UAE issues stablecoin regulations

The Hashgraph Association (THA), the non-for-profit accelerating adoption of the Hedera network globally, will be participating at Gitex 2023 between October 16th and 20th at the Dubai World Trade Center in Dubai UAE, as well as the Future Blockchain Summit being held between October 15th-18th at Dubai Harbour, announcing the launch of its stablecoin studio amidst VARA’s ( virtual asset regulatory authority) latest regulations regarding stablecoins.

The Hashgraph Association will be present at Gitex 2023, inking a groundbreaking partnership with Du Telecom this summer at Envision 2023.  The partnership harnesses the potential of the Hedera network to offer secure, traceable, and scalable solutions on the platform.

Hedera’s distributed ledger technology (DLT) ensures a trusted and reliable foundation for the newly developed solutions. Target sectors include manufacturing, healthcare, education, smart cities, and agriculture, catering to a wide range of industries seeking secure and efficient applications.

The Hashgraph Association will also be participating alongside AgNext, one of 12 projects offered grants by THA in 2022. The Hashgraph Association’s grant funding enables projects to scale globally. AgNext has innovated and developed a full-stack integrated algorithm, software, and hardware platform that address quality assessment issues across the agri-value chain, enabling businesses to analyze food supply chains on the spot in just 30 seconds.

THA had also previously worked with DIFC (Dubai International Financial Centre) Courts, on Tejouri. The first phase of Tejouri was launched at Gitex 2022. Tejouri is a global digital vault that enables the upload and secure storing of documents ranging from insurance contracts, title deeds, wills, and financial certificates to images and multimedia files. Tejouri can be utilized by all individuals globally and is built on Hedera’s DLT, establishing a decentralized trust application.

Alongside Gitex 2023, Jeffrey Tchui, Head of Advisory, at The Hashgraph Association, will be speaking on Hedera’s ecosystem and its stablecoin accelerator, Stablecoin Studio, at Bharat Blockchain Yatra (BBY) sessions under IDS at the Future Blockchain Summit. BBY sessions are powered by Hedera and supported by AICTE.  BBY has arrived in UAE after an awe-inspiring journey that spanned 25 series of events, spreading its wings across 18 states in India as part of a tech tour on Web3 and blockchain, narrating India’s Web3 story.

IDS has been a pioneer in the enterprise blockchain space, providing cutting-edge blockchain solutions to governments and corporations worldwide across nine industry verticals.

With over 17 years of technology and consulting experience, Jeff has a wealth of experience in blockchain and DLT at leading global organizations, Hitachi, Infosys, Cognizant, and even TOKO, an asset tokenized exchange and custodian that recently received a license in Dubai, UAE from VARA (Dubai Virtual Asset Regulatory Authority).

TOKO solves the inefficiencies of today’s capital markets, leveraging DLT technologies of Hedera Consensus Service and the Hyperledger Fabric plug-in. TOKO is a digital asset creation engine created by DLA Piper, a Hedera Governing Council member that couples the compliance and regulatory rigor of a global law firm with the innovative technology solutions of tomorrow. TOKO has also been a grant candidate for THA.

Kamal Youssefi, President of The Hashgraph Association, on the participation of THA at Gitex 2023, stated, “We are here at Gitex and in the UAE because we believe that the MENA region and UAE, in particular, is the new Web3 and crypto powerhouse of the world. We are happy to be launching our upcoming grant fund in Abu Dhabi at ADGM and we are ready to discuss the DLT solutions we can offer SMEs, governments, and enterprises in the region.”

He adds, “One of the biggest discussions we believe to be relevant to the region is the new stablecoin regulations recently released by VARA. This is especially important given the launch of Stablecoin Studio on the Hedera network. Stablecoin Studio is an open-source stablecoin issuance and management toolkit that makes it easy for Web3 stablecoin platforms, institutional issuers, enterprises, and payment providers to build stablecoin. Stablecoin Studio provides organizations worldwide with an all-in-one toolkit that enables stablecoin issuers to quickly configure, issue, and manage bespoke stablecoins on the Hedera network.” 

Dubai’s Virtual asset reglatory authority recently announced what it calls Fiat referenced virtual asset ( FRVA) regulations better know to most as virtual assets pegged to a stable value, or stablecoins.

UAE Public Prosecution discusses money laundering crimes using virtual assets

UAE Public Prosecution discusses money laundering crimes using virtual assets

The UAE Public Prosecution is launching a forum entitled  “Financial Crimes Foresight Forum” on 11th October 2023, to discuss money laundering crimes using Virtual Assets. The event will be organized in anticipation of the upcoming International Summit on Metaverse Governance and Emerging Technology, scheduled to commence early next year in 2024.

The forum aims to study and analyze trends in financial crimes and explore proactive preventive measures based on modern and future global trends. It also seeks to explore the future of financial crimes in all its forms and delve into in-depth research to present them as topics for the upcoming International Summit on Metaverse Governance and Emerging Technology.

The forum presents an opportunity for exchanging experiences and enhancing awareness and commitment to combating various forms of financial crimes, especially those based on virtual assets. Experts will discuss the evolution of financial crimes related to virtual assets to shed light on achieving a balance between technological advancements and financial security guarantees. Moreover, it aims to develop scenarios for future information security challenges in the financial and banking sectors and the cyber risks they may face.

The forum will host a select group of speakers from the UAE Public Prosecution, the Securities and Commodities Authority, the Cyber Security Council, the Executive Office for Anti-Money Laundering and Counter-Terrorism Financing, the UAE Financial Information Unit, the Dubai Police General Headquarters, the Economic Security Center of Dubai, the Dubai Public Prosecution, and the Virtual Asset Regulatory Authority of Dubai.

Dubai’s virtual asset regulator ceases sale of Islamic Coin token in UAE

Dubai’s virtual asset regulator ceases sale of Islamic Coin token in UAE

In a recent marketplace alert issued by Dubai’s virtual asset regulatory authority, it warns investors and market participants of the unauthorized issuance, marketing, and retail distribution of Islamic Coin (ISLM) from Bored Gen (BG) DMCC based out of Dubai UAE.

As per the notice, investors and customers are advised to note the unauthorized virtual asset Issuance given that BG is not a VARA licensed or registered VA issuer, nor a VASP that has otherwise been granted a No-Objection Confirmation to issue a Virtual Asset such as the ISLM token, which is being offered for public sale to interested purchasers including [without limitation] to Dubai residents.

As per VARA alert, the public sale of ISLM by BG through a Regulation D Offering arranged by OpenDeal Portal LLC – conducting business as Republic on republic.com is a potential breach of Regulation III.A.1 (such activity constituting placement and distribution of a Virtual Asset).

Additionally, under the definition of Broker-Dealer Services, such activity is fully regulated under the VARA regime and requires a VA Broker Dealer License that neither BG nor Republic have obtained from VARA.

With regards to marketing activities, given that  BG is a Dubai-based DMCC entity and marketing activity pertaining to ISLM undertaken in and from Dubai has been done without VARA approval, VARA are investigating whether there has been a breach of Administrative Order No. 01/2022 Relating to Regulation of Marketing, Advertising and Promotions Related to Virtual Asset.

Dubai’s VARA has requested that BG cease marketing activity until it obtains the appropriate approvals from VARA and introduces appropriate disclaimers in connection with such marketing.

As a consequence of the breach of VARA’s regulations described above, enforcement action has been taken against BG and BG has been directed by VARA to suspend with immediate effect any further distribution of ISLM and to cease any further issuance and/or marketing of ISLM until approval from VARA is received.

This comes after several media articles that questioned the validity of the token sale by Bored Gem and information provided by Islamic Coin.

South African crypto exchange receives initial approval from Dubai’s virtual asset regulator

South African crypto exchange receives initial approval from Dubai’s virtual asset regulator

In a blog announcement published by VALR, a South African based crypto exchange, they state that their subsidiary VALR FZE has won an initial approval from Dubai’s Virtual Asset Regulatory Authority (VARA), marking a pivotal moment in our journey towards global expansion.

As per the blog post, “The initial approval granted to VALR FZE does not allow it to undertake any virtual asset services yet, but is a critical step as it seeks to establish a virtual asset exchange in Dubai and affirms VALR’s position as a reputable player in the virtual asset industry, committed to upholding the highest standards of operational integrity, compliance and security. “

Co-founder and CEO, Farzam Ehsani, stated, “For the past 5 years, VALR has been working closely with regulators to inform regulatory frameworks that protect the public while allowing responsible innovation to flourish. This initial approval from VARA is a significant milestone for VALR to bring our products and services to a more global audience under the auspices of a world-leading regulator.”

Blake Player, Head of Growth at VALR highlighted the strategic importance of Dubai and the Middle East, adding, “We see Asia, the Middle East, and the UAE as attractive markets with significant crypto flows. Dubai is quickly gaining recognition as a forward-thinking and pragmatic jurisdiction for crypto businesses. Setting up in Dubai provides an excellent opportunity to serve the regional market and a global customer base from a crypto and business-friendly jurisdiction.”

VALR is not the first crypto exchange seeking a license in the UAE nor will it be the last. Many international crypto exchanges including Binance, crypto.com, Bybit, and CoinBase have all expressed their interest in the UAE.

A stablecoin to be launched in Abu Dhabi UAE

A stablecoin to be launched in Abu Dhabi UAE

According to a recent Bloomberg article published October 2nd 2023, Abu Dhabi UAE will witness the launch of a stablecoin. Former Softbank vice president, Akshay Naheta has launched his company called Distributed Technologies Research (DTR) in Abu Dhabi which will focus on developing several products one of which is a stablecoin.

Naheta on LinkedIn posted,” I’m happy to announce my new company Distributed Technologies Research! We’ve been operating in stealth for the past 10 months. And, I’m looking forward to sharing our product releases over the near-term.”

According to Bloomberg, The 42-year-old financier has set up DTR and will partner on the project with Hong Kong-based DRAM Trust, which has ties to several high-net-worth individuals. They’re looking to capitalize on a stablecoin market that analysts at Bernstein estimate will grow more than 20-fold to $2.8 trillion in five years.

DRAM coins will be available on decentralized exchanges including Uniswap, Sushiswap and Pancakeswap, and the team plans to work with centralized exchanges in the near future, according to Naheta.

Akshay Naheta was a former trader at Deutsche Bank. He was central to some of SoftBank’s biggest deals during his tenure. He pitched founder Masayoshi Son on the sale of chip designer Arm to semiconductor designer Nvidia Corp. He also led a $4 billion investment in Nvidia in 2017, earning $3 billion in profit.

In a press release he states, “The launch of DTR’s business in the ADGM and the licensing of its first product to the DRAM Trust is an initial step towards our wider ambitions. Our technologies provide the efficacy, usability, governance, security, transparency and stability sought by the cryptocurrency markets, while leveraging cutting edge technology protocols. The DRAM Trust brings much-needed credibility to the global stablecoin sector.” 

Global law firm Decherts LLP acted as a legal advisor to DTR and the DRAM Trust for structural and regulatory matters. 
 
The DRAM Smart Contract has been audited by Consensys and PeckShield, with real-time reserve audits to be published by The Network Firm through their LedgerLens product.
As part of its product expansion plans, DTR expects to launch a decentralized wallet solution in early 2024, to enable the wide accessibility and utility for digital tokens.  

According to Bloomberg Intelligence crypto market analyst Jamie Coutts, stablecoins on several Layer-1 networks transacted $6.87 trillion in 2022, surpassing the transaction volumes of Mastercard and PayPal. However, stablecoins still lagged behind the Visa network, which processed nearly double the volume at $11.6 trillion.

This announcement comes less than a week after Dubai’s virtual asset regulatory authority introduced its stablecoin regulations.

Updated 5:20 pm Dubai UAE time

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.