Crypto exchange MaskEX to set up headquarters in UAE after receiving initial approval from UAE regulator

Crypto exchange MaskEX to set up headquarters in UAE after receiving initial approval from UAE regulator

Crypto exchange, MaskEX has unilaterally announced receiving an initial approval from Dubai’s Virtual Asset Regulatory Authority (VARA) to begin making preparations for its launch in the United Arab Emirates (UAE). It also will be opening its headquarters in Dubai and hiring. 

As per the announcement, the approval represents a major milestone for MaskEX, which has been working tirelessly to expand its presence in the Middle East and bring the benefits of virtual assets to a wider audience.

MaskEX will begin finalizing its entity incorporation, engage banking services, hire more staff in Dubai for its soon-to-be-opened headquarters office, and take the necessary steps to become the first regulated exchange in the UAE.

The services and activities MaskEX has applied for include exchange, lending and borrowing, broker-dealer, and virtual asset management and investment services, with the aim of obtaining VARA’s highly acclaimed FMP license. This license will enable MaskEX to operate in and from Dubai while upholding its commitment to regulatory compliance, customer protection, and innovation. 

“We are extremely proud and grateful to have received initial approval from VARA, which is a testament to our commitment to meeting the highest regulatory standards,” said Eric Yang, CEO of MaskEX. “We believe that our platform will provide users in the UAE with a safe, reliable, and efficient way to access the world of virtual assets, and we look forward to launching as soon as possible, while strictly adhering to the requirements laid out by VARA.”

“The initial approval from VARA is a major milestone for us, and is of great significance not just for the UAE but for the entire MENA region,” said Ben Caselin, Vice President and Chief Strategy Officer of MaskEX. “We look forward to working closely with the regulatory authorities to ensure that our platform meets all necessary requirements and provides a secure and transparent environment for our users.”

UAE EnjinStarter first Web3 Launchpad globally to be initially licensed by regulator

UAE EnjinStarter first Web3 Launchpad globally to be initially licensed by regulator

UAE based EnjinStarter MENA, a web3 Launchpad and incubator, has become the first launchpad globally to receive initial approval by Dubai’s virtual asset regulatory authority.

According to the unilateral announcement, EnjinStarter will continue to undertake the in-depth process of applying for a licence, in accordance with VARA requirements.

With the Middle East and North Africa considered to be a booming Web3 market, Enjinstarter is seeking a foothold in the region as it aims to be the premier Launchpad and incubator for Web3 metaverse, gaming, and entertainment experiences.

Enjinstarter has ambitious plans to be the go-to provider for Web3 adoption in the region, including the addition of more portfolio projects focusing on impact and sustainability initiatives that complement the UAE’s commitment to climate action.

“This is an important step for Enjinstarter. Getting initial approval and continuing with our license application makes clear our commitment to achieving the highest standards of accountability and transparency in the Web3 space. We are committed to   conforming to VARA’s high standards and know this will only accelerate our growth in the Middle East and beyond,” said Prakash Somosundram, co-founder and CEO of Enjinstarter.

“Dubai has been laser-focused on establishing itself as a global hub for Web3. It continues to provide much-needed leadership in terms of regulation and innovation, especially with initiatives such as VARA’s own foray into The Sandbox. We are looking forward to getting started here and contributing to Dubai’s growing Web3 ecosystem,” added Vasseh Ahmed, Enjinstarter MENA’s managing director.

Digital asset exchange Fasset receives initial approval for full market license from Dubai’s VARA

Digital asset exchange Fasset receives initial approval for full market license from Dubai’s VARA

Unilaterally, Fasset, a digital asset exchange platform with a vision to offer affordable and frictionless gateway for people in emerging markets to own and grow their wealth in digital assets has announced  that it has been granted an Initial Approval for a Full Market Product (FMP) license by the Dubai’s Virtual Assets Regulatory Authority (VARA) in UAE.

As per the announcement, “Though the initial approval does not yet allow any virtual asset activity in or from Dubai, this initial stage indicates progress in obtaining full permission to operate in Dubai. This crucial step forward allows Fasset to lead the digital assets market, as one of the first exchanges to provide regulatory protection to consumers in Dubai, as the MENA region has been identified as the world’s fastest growing cryptocurrency market.”

Raafi Hossain, CEO and Co-Founder of Fasset stated, “This is an incredibly exciting time to be leading the way in democratizing access to digital assets. As the world turns to Dubai as the financial epicenter for growth, the opportunity to work with VARA embeds improved access to digital assets with the provision of heavily anticipated regulatory guardrails. We are grateful for the leadership and guidance of VARA team in helping us achieve the milestone of being one of the first exchanges to receive Initial Approval under the FMP license, and look forward to working with the VARA team to achieve full permission to offer our services to the world from Dubai.”

Fasset has sought regulatory permissions across the biggest markets in the Middle East, Asia and Africa, where digital asset-based rails are vital.

Currently Fasset is participating as a sponsor and speaker at the Dubai Fintech Summit. Mohammad Raafi Hossain, participated in a panel discussion on Crypto and the evolving regulatory framework emphasizing the societal value of crypto.

Raafi emphasized that regulation should serve as a positive reinforcement tool for the main benefits of wealth creation and property rights ownership, rather than a reactive response to the negative aspects of the crypto industry. Secondly, he highlighted the need for an international philosophy and ethos around crypto regulation that takes into account the desires and needs of the market with regards to asset ownership and enablement.

Fasset has also signed two MOUs, one with Minted which will provide increased access to tokenized precious metals across developing markets including Turkey, Indonesia and UAE and another one with Oman Mamun which will focus on building innovative new solutions for Oman based on real world assets. The collaboration with Mamun will increase access to investment opportunities and enhance liquidity for physical assets, all within a secure and compliant framework.

CoinBase, Circle, and Bittrex leaving USA and heading to the MENA region

CoinBase, Circle, and Bittrex leaving USA and heading to the MENA region

The exodus of Crypto and Blockchain startups from the United States seems to be intensifying and it looks like the MENA region, and UAE are the new preferred destinations for CoinBase, Circle and Bittrex. 

Tim Draper, Founder of DFJ VC tweeted recently that Silicon Valley startups are relocating to Middle East, Asia, and Europe.

He states, “CoinBase and Gemini are moving out of the US for regulatory reasons. Dubai, London and Singapore are eating into New York’s blockchain leadership. This exodus is not good for US jobs, economy, and homelessness.”

Additionally, in the last 24 hours CoinBase announced that its CEO and Co-Founder Brian Armstrong is currently in the UAE for a series of engagements with policymakers, regulators, partners, Web3 and crypto founders as well as clients.

Armstrong is delivering a keynote address at the inaugural Dubai Fintech Summit, under the patronage of His Royal Highness, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance.

As per CoinBase blog, “Crypto and Web3 serve as enormous opportunities for economic and technological diversification for the UAE, and the region has the potential to be a strategic hub for CoinBase, amplifying our efforts across the world.”

The blog adds, “It further serves as a particularly strategic bridge between Asia and Europe – two of our existing focus international regions to date.”

CoinBase reiterated that it is not only working with Abu Dhabi Global Market (ADGM) regulators to further expand the licensing and availability for CoinBase International Exchange but is also engaging with Dubai’s Virtual Assets Regulatory Authority (VARA), a dedicated regulator for virtual assets, as they put forward a comprehensive retail framework built on the principles of economic sustainability and cross-border financial security. 

CoinBase believes that their presence in the UAE will not only expand their global footprint but also help to bring 1 billion users to crypto.  

The blog adds that the MENA region is out to be a leader in the development of a web3 ecosystem, making it an attractive location to consider investing in. The vacuum created by other notable jurisdictions means that international counterparts, such as the UAE, are racing to fill the regulatory gap.

CoinBase is not the only US Company that is looking at the UAE. It also seems Circle is interested in the region as well. The Circle team were recently present in Dubai UAE at a dinner hosted by Miriam Kiwan, the partner of Raiven Capital.

Jeremy Allaire, CEO of Circle Internet Financial, during an interview with Bloomberg, blamed the shrunken value of the company’s stablecoin, USD Coin, on regulatory challenges in the United States and concerns about its banking system.

In addition in March 2023 the SEC sued crypto exchange Bittrex shortly after it announced it was leaving the US markets. Bittrex, announced it would no longer do business with U.S. citizens because “it’s just not economically viable for us to continue to operate in the current U.S. regulatory and economic environment.”

Stephen Stonberg, CEO of Bittrex Global crypto exchange  has stated that the UAE and Dubai are among the friendliest jurisdictions for the cryptocurrency industry. He added in a Bloomberg interview Dubai is likely to benefit from the expanding crypto market in the Middle East as local regulators increasingly accept blockchain related technologies.

Finally in a recent LinkedIn post by Ali Jamal, CEO of UAE based Cryptos Consultancy, a crypto and Blockchain licensing firm, he noted, “We at Cryptos Consultancy have been getting lots of queries from crypto and tradfi businesses about setting up Virtual Asset practices in Dubai. There is a real buzz around Dubai’s virtual assets ecosystem now that the Virtual Assets Regulatory Authority (VARA) regulations are out.”

So as crypto and Blockchain businesses flee the USA, the tightening regulations in the USA continue with The New York State Attorney General (NYAG) Office announcing last week that Attorney General Letitia James has proposed “landmark legislation to tighten regulations on the cryptocurrency industry to protect investors, consumers, and the broader economy.” The announcement stated, ” Attorney General James’ program bill, which proposes the strongest and most comprehensive set of regulations on cryptocurrency in the nation, would increase transparency, eliminate conflicts of interest, and impose commonsense measures to protect investors, consistent with regulations imposed on other financial services.” 

It seems that this is only the beginning and the MENA region with UAE and Bahrain at the helm will become the new crypto Silicon Valley. 

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UAE virtual asset regulator takes further action against OPNX tokenized exchange

UAE virtual asset regulator takes further action against OPNX tokenized exchange

The Dubai Virtual asset regulatory authority, has issued a formal letter of reprimand to OPNX the tokenized exchange for bankrupt crypto entities,  and its founders for carrying out virtual asset Exchange Services on an unregulated basis in Dubai; and for marketing, promoting and/or advertising OPNX services and its native token [FLEX] without the necessary permits from VARA.

Dubai virtual asset regulator in February 2023 became aware that OPNX exchange was soliciting, and collecting personal data from the public to participate in its new (to be launched) exchange. Through social media platforms, OPNX had been engaged in marketing the exchange without establishing warranted restrictions for residents of Dubai/UAE.

The announcement on VARA goes on to note, “Then on April 4th  OPNX launched the exchange on opnx.com, providing VA Exchange services – a regulated activity under the VARA regime, without securing any regulatory licenses, and as such operating in contravention of local laws.”

As a result VARA issued several cease and desist orders for OPNX followed by the marketplacealert which was later followed with a  written Reprimand issued by VARA to OPNX; 4 founders (Mark Lamb, Sudhu Arumugam, Kyle Davies and Su Zhu); and CEO (Leslie Lamb).

With the continued lack of satisfactory remedial action by the responsible parties, VARA has stated that it is continuing to actively monitor the situation and investigate OPNX’s activity to assess further corrective measures that may be required to protect the market.

This action from VARA comes after OPNX has raised criticsm with some of its recently named investors distancing themselves and refuting investments in OPNX. 

OPNX CEO Lesli Lamb had announced the list of investors which included a saudi arabian investment firm. 

BitOasis receives MVP Operational License from Dubai Virtual asset regulator

BitOasis receives MVP Operational License from Dubai Virtual asset regulator

As per Dubai VARA website, BitOasis, the crypto broker exchange has moved one step forward in its licensing process. It has become the first among VARA’s crypto broker dealers to receive MVP (Minimum Viable Product). operational license one step before the FMP ( Full Minimum Product) Operational License.  

CoinMENA, Scallops, and MidChains are still in the first stage as MVP provisional while GCEX has received an MVP preparatory license one step before MVP operational license.

BitOasis applied for VARA licensing in March 2022. At the time BitOasis had carried out crypto trades worth $4 billion. Ola Doudin Co-Founder and CEO of BitOasis has stated at the time, “  “We will continue to strive to offer our customers the most customized platform for their local needs in accordance with regulations that will best protect them both now and as the industry evolves.”

In April of 2021, BitOasis announced that it had been granted a a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM) in the United Arab Emirates (UAE), but is still awaiting additional launch approvals as well.

BitOasis has raised a total of $30 million in funding from investors such as Alameda Research, Digital Currency Group, Global Founders Capital, Jump Capital, NXMH, Pantera Capital, Wamda Capital and others.

In October 2022 UAE based crypto exchange BitOasis, and MasterCard launched crypto card programs across the MENA region to facilitate day to day usage of cryptocurrencies at points of sale and ecommerce websites.

On Monday May 1st, Bitoasis in its official announcement and VARA made the following statements,

 Henson Orser, Chief Executive Office, VARA stated “We are pleased to welcome BitOasis to the MVP Programme phase. The VARA ecosystem aims to strike a balance between value creation, risk mitigation and enhanced investment opportunities with consumer protection at its core. BitOasis has demonstrated a strong commitment to operating with a firm bias for regulation throughout the licensing process. One of VARA’s founding principles is creating an equal opportunity regime for responsible VASPs and being able to onboard credible home-grown companies, like BitOasis, in addition to leading global platforms, allowing us to bring the shared learnings of our licensees to build the foundation for our global future economy.”

Ola Doudin, co-founder and CEO of BitOasis added, “We are extremely proud to receive VARA’s MVP Operational License. Becoming the first virtual asset trading platform in the MVP programme to attain an operating license is an important milestone for us and the Emirate of Dubai.”

 Samir Satchu, Senior Vice-President of Public Policy & Expansion at BitOasis noted, “Our commitment and ambition at BitOasis is to serve the GCC and MENA region through a network of regulated platforms and on the ground infrastructure. VARA’s MVP Operational License, as well as our in-principle approval in Bahrain, are important building blocks for that strategy. “

BitOasis is following in the footsteps of HexTrust crypto custodian who also received MVP operational license earlier this year.

VARA and UAE’s Security Commodities Authority both announced the commencement of licensing of already existing and new crypto entities. 

Article was updated on May 1st 2023 with quotes from VARA and BitOasis

Dubai Virtual asset regulator warns against dealing with virtual asset exchange OPNX

Dubai Virtual asset regulator warns against dealing with virtual asset exchange OPNX

Dubai’s virtual asset regulator, VARA has issued an alert and warning with regards to virtual asset exchange OPNX (opnx.com) which launched on April 4th 2023.

As per VARA’s announcement investors should note that OPNX is not regulated by VARA and any activity being carried out by them in Dubai is being performed on an unregulated basis.

The warning adds that while OPNX.com claims to offer exchange services for complex VA products including but not limited to derivatives and tokenized bankruptcy claims. These products have not been reviewed by VARA, and may not be suitable for all investors;

As per Dubai Law No. (4) of 2022: mandates that all VA Activity must be regulated in order to be deemed permissible in this jurisdiction, and as such, OPNX is not legally authorised to provide any VA services from/in the Emirate of Dubai; and

Cabinet Resolution No. 111/2022: advises the market to not engage with unregulated VASPs

Any promotions, advertising, solicitation and/or marketing of opnx.com or its native token FLEX has not been approved by VARA, and OPNX is hence not permitted to offer, promote or advertise any of its products or services in/from Dubai, or to residents of the Emirate.

The alert also noted that given that OPNX’s products and services are not permitted to be made available to Dubai residents, the market may wish to notify VARA at varaconnect@vara.ae if anyone has been (i) a subject of any of OPNX’s solicitation/ promotional activities; or (ii) their services have been made available to users in the UAE.

Global crypto exchanges in first phase of Dubai’s regulator journey with Binance and Crypto.com a step further

Global crypto exchanges in first phase of Dubai’s regulator journey with Binance and Crypto.com a step further

Global Crypto exchanges, Huobi, Bybit, Equiti, and OKx have all made it to the MVP ( Minimum Viable Product) provisional phase of VARA’s regulatory journey, while crypto.com  and Binance have moved one step forward to the preparatory license phase. 

As per VARA the MVP License is a 3-stage process starting with a (1) Provisional Permit; graduating to a (2) Preparatory License and concluding with an (3) Operating License. Applicants that are already in the MVP process will be advised by VARA to either continue within the MVP licensing process and/or be transitioned to the FMP Licensing process, ensuring a seamless transition with a focus on efficiency.

So far as per VARA the only crypto exchanges in the second phase under preparatory license are Binance and crypto.com. Binance is also in preparatory phase for its payments offering. 

VARA recently announced that Crypto.com move to the preparatory phase of the license after graduating from the provisional phase. 

As per the release, Crypto.com  received this MVP preparatory license after a detailed review of its key personnel, governance procedures, Anti Money Laundering / Countering the Financing of Terrorism (AML / CFT) capabilities, Know Your Customer (KYC) and Ultimate Beneficial Owner (UBO) policies and procedures, cross-border safety and security measures, and best-in-class compliance practices. 

“We are pleased to welcome Crypto.com to the MVP Programme preparatory phase,” said Henson Orser, Chief Executive Officer of VARA. “VARA’s regulatory framework will be instrumental in creating and managing a unique, resilient and securely future-proofed ecosystem that delivers a sustainable and thriving global best-in-class VA market with secure cross-border interoperability. As such, participation from credible players like Crypto.com will further our mission of delivering a progressive and future-focused regulatory framework”.

“This achievement is the next significant step for Crypto.com in an incredibly important market for our business and industry,” said Kris Marszalek, CEO of Crypto.com. “With the MVP preparatory license, we look forward to continuing to work with regulators in providing customers the most comprehensive and secure crypto experience.”

Only VASPs that receive a final approval post review from VARA – and receive the FMP License, are in a position to undertake any regulated VA activities, or offer such services to and/or from the Emirate of Dubai.

The only entity in VARA that has reached one stage before a fully operational license is HexTrust which provides crypto custody and staking services.

During a recent interview by LaraontheBlock with the CEO of VARA, Orser explains how VARA will be offering more licenses in areas such as DAOs, DeFi, Crypto mining, and more. He also explains what is of most importance to VARA as a regulator.

XRPAYNet to bring Crypto Fiat micro payments and Buy now pay later services to UAE

XRPAYNet to bring Crypto Fiat micro payments and Buy now pay later services to UAE

XRPayNet a blockchain XRP Ledger based crypto-fiat micropayments solution provider is gearing up to launch in the UAE. Already in the process of being regulated through VARA and the Central Bank of UAE, XRPayNet and its partner in the UAE, ChainTech Labs aim to revolutionize the crypto payments sector by bridging the world of fiat and crypto for micropayments and buy now pay later offerings.

Kristian Poliszczuk Founder, of XRPayNet has been a passionate crypto investor since Bitcoin was valued at just $2000; he then became an XRP enthusiast and from there built XRPayNet on XRP’s Blockchain ledger. Poliszczuk is an entrepreneur at heart building small businesses since he was 12 years old. At just 23 years old he had 19 properties under his belt as a real estate broker and today he is seeking to become one of the world’s leading crypto micro payments provider.

A Solution to a Problem

According to Poliszczuk XRPayNet was developed to solve three major problems facing the 420 million crypto holders globally today. The first was that most crypto holders have no place to spend their crypto given that retailers are hesitant to accept crypto due to its volatility, secondly most crypto payment solution providers have yet to bridge fiat with crypto and finally retailers and merchants want a secure, easy technology platform to use seamlessly with their existing technology.

Poliszczuk told LaraontheBlock, “For crypto to be mainstream, it must work in harmony with fiat. I started to think about creating a tool that would allow users to spend their crypto from their wallet while retailer receives fiat currency. We are doing this through both our debit card solution as well as mobile application, making the Crypto to Fiat payment process seamless.”

Today, cryptocurrencies are accepted by less than 0.001% of companies throughout the world, yet $2.5 Billion was spent by consumers on pre-paid crypto cards in 3 months from the end of 2021-start of 2022.

Utilizing XRPL network, as one of the only 145 node validators, XRPayNet is built on one of the most scalable and ecological blockchains developed to date.

In addition to offering micropayments XRPayNet will be offering the first Buy Now Pay Later solution for crypto holders. Poliszczuk explains, “We are bringing the solution of Buy Now Pay Later to the crypto world. Clients who hold our card or application can buy on credit using the XRPAY coin staked with us as collateral. We are offering crypto holders more choice and providing the retailer with fiat currency of their choice.”

Entering the UAE

Currently XRPayNet is going through the process of acquiring a regulated license in the UAE, working with the legal firm Saeed and Company. They are seeking regulatory approval from Dubai’s Virtual asset regulatory Authority as well as the Central Bank of UAE given that they are a payment solution provider.

Poliszczuk says, “We have been told the process will take three months and we are confident given that one of our retail partners is closely involved in the regulatory scene and understand VARA’s requirements well.”

XRPayNet already has clients lined up in the UAE who are looking to offer crypto fiat micropayments and Buy now Pay later services. Poliszczuk, told LaraontheBlock, “We have a UAE chain of stores ready and waiting for us to deliver our technology to start using it in March 2023, we have also been approached by a gas station chain who also want to use our service. We have built a complete POS (Point of service) interface and all these stores need is to download our application on their terminals at point of sale to complete the payments.”

The XRPayNet coin while developed identical to that of XRP Ripple is not the same as XRP. According to Poliszczuk while the coin is built on XRP ledger and identical  to Ripple’s XRP we did not choose to use XRP because Ripple has already positioned it as a coin for international cross border payments for banks and not for micro payments.

To date XRPayNet has more than 10,000 holders of their coin. In addition XRPayNet is considering with its UAE partners to developing their own XRPayNet stablecoin as well as adopting the stablecoin required by UAE regulators. He states, “As part of the regulatory process it stipulates that we should use a particular stablecoin which has to be embedded in our applications. We are adhering to these regulations very strictly.”

XRPayNet founder is confident that there is huge demand in the UAE for crypto retail payments services and this is one of the reasons they were approached by ChainTech Labs. According to Poliszczuk, “ Today there are maybe 100-200 global crypto payment entities in the space and many of them won’t go forward as they usually stop development during bear markets. We are not them, we increased our talent base from 9 people to 26 within the last 6 months, and regardless of our coin price we are still developing to create the best products. So we are positioned ahead of others.”

Expansion and the Future

Other than the UAE, the 14 month old XRPayNet will be expanding to other jurisdictions. In December 2022 alone there were 11 requests for partnerships across the globe.

In conclusion XRPayNet founder believes that crypto is still in its infancy stage and is here to stay as long as people don’t convince themselves that crypto can work in silo of fiat, in the end they both need to work in harmony.

UK Nexo crypto lender to hire a150 workforce in UAE as it expands its MENA presence

UK Nexo crypto lender to hire a150 workforce in UAE as it expands its MENA presence

In a recent article published by Arabian Gulf Business Insight, Nexo Co-Founder and MD Antoni Trenchev announced that the UK entity would be opening its offices in the UAE as it expands into the MENA region.

The MENA region will grow to account for 30 percent of its total global operations. NEXO as per the article which currently has 5 million users across 200 jurisdictions will set up under Dubai’s VARA regulations as well as DIFC.

As per comments made by Trenchev 150 people will be recruited. In the article he states, “We are seeking two lines of regulation,” Trenchev said. “One is for the crypto-related activities which will be at VARA, while DIFC will be for more traditional offerings associated with wealth management.

“There appears to be a political will to create a blockchain fintech financial hub in the region but more specifically Dubai and Abu Dhabi, which is always welcoming,” he said.

“In the Middle East the rules are being developed as we go, but there is the clear desire to have the business here, whereas in the US, when you deal with the various agencies and you assess their moves, you’re not really sure whether they want to have any crypto there apart from maybe Bitcoin,” he adds.