Oman Easy Coins becomes first registered VASP entity with Capital Markets Authority

Oman Easy Coins becomes first registered VASP entity with Capital Markets Authority

While the Oman Capital Markets Authority awaits feedback for its virtual assets framework consultation paper, it has approved registry of Oman’s Easy Coins, a non custodial crypto provider, as the first VASP in the country.

Easy Coins has been operating in Oman for over two years. In December 2022 Easy Coins launched its trial of Tether USDT on the Tron Blockchain. Accordingly Easy Coin users in Oman could purchase TRC20 USDT.

Prior to that The Oman Water and Waste Water Services Company ( OWWSC), member of Nama Group, trialed its stablecoin linked to the Oman Riyal. The company signed an MOU with Oman based Digital Digits, the creators of Easy coins and Connected Chains to trial “ Hasalah” a stablecoin Wallet.

Easy Coins was launched in Oman in June 2021, as a non custodial crypto Brokerage platform, The platform is powered by Quantoz Blockchain Technology for financial services, and running on Nexus from connectedChains and supported by ThawaniPay.

Given that Easy Coins was already self regulating and adhering to CMA’s FATF KYC nad AML requirements, they were considered the first to be registered as a VASP seeking full license in Oman.

Dr. Khalid M.W. Tahhan, Co-Founder, Easy Coins ME stated, “We at Easy Coins believe that innovation from society will always be ahead of any regulator in any industry and nation. Thats why for vision 2040’s primary innovation pillar to be properly realized, it is essential that innovation from society should not be slowed down or hindered till regulators catch up, but rather it is essential for innovators to innovate and regulators to catch up with them rapidly. We commend the capital markets for their rapid response and acclimatization towards innovations in virtual assets and believe with such adaptable regulators, this industry will have a healthy place in Oman to flourish.”

Speaking to LaraontheBlock Tahhan explained, ” Registration is stage one which means we were cleared for KYC, AML, CDD requirements, full licensing is the next stage and will happen next year. Today we are allowed to operate because our risk measures are covered.” 

HH Sayyid Azzan Bin Qais Al Said Co-Founder of Easy Coins added “ Easy Coins has been in operations for two years and has been self regulating its operations since its launch. Hence when CMA initiated its registration process for Virtual Asset Service Providers, we were able to instantly meet CMA’s and FATF’s KYC/AML requirements.“

Bahrain based RAIN crypto exchange broker receives full license in UAE

Bahrain based RAIN crypto exchange broker receives full license in UAE

While Bahrain based Rain crypto broker exchange had sent out a teaser last week saying a big announcement was coming, Citywire published an announcement on July 25th 2023 saying that RAIN trading Limited ( Rain ADGM) has been granted Abu Dhabi Global Market virtual asset brokerage and custody service license.

This comes just after BitOasis’s active operational license was suspended by Dubai’s virtual asset regulatory Authority.

According to CityWire, “Rain ADGM will offer institutional and a number of retail clients in the UAE the ability to buy, sell and store virtual assets, in addition to having a fiat-to-virtual asset onramp in AED.”

Joseph Dallago, CEO of Rain, stated to CityWire ‘This achievement represents a significant milestone not just for Rain, but for the entire virtual assets industry. With this license, we can now offer our customers an even greater level of security and trust, as we continue to drive innovation and growth in the virtual assets space. Rain now offers the only regulated on-ramp and off-ramp of AED into virtual assets in the UAE.”

Arvind Ramamurthy, Chief Of Market development at ADG added, “With the inclusion of companies like Rain, we are continuously trying to add value to Abu Dhabi’s digital asset ecosystem, This is while also supporting the diversification of our flourishing economy.”

In 2022 , cryptocurrency platform Rain received in-principle approval for financial services permission (FSP) from Abu Dhabi Global Market (ADGB), which if it is fully approved will allow it to operate beyond the GCC region and offer a greater number of virtual asset pairs.

The in-principle approval was granted by the Financial Services Regulatory Authority (FSRA) to Rain Financial Group’s ADGM registered entity Rain Trading Limited. Prior to that the company had raised$110 million in Series B funding .

At the time of receiving in principle approval, Rain co-founder Yehia Badawy  had said, “Working with regulatory bodies such as the FSRA is one of the fastest and most secure ways to offer cryptocurrencies to the region and benefits both customers and governmental bodies alike. We look forward to working hard to fulfil all IPA conditions to the satisfaction of the FSRA in order to obtain the FSP to operate.”

Rain was founded in 2017 by Abdullah Almoaiqel, AJ Nelson, Joseph Dallago, and Yehia Badawy.

UAE Securities and Commodities Authority receives requests for virtual asset licenses fining non compliant VASPs with $2.7 million

UAE Securities and Commodities Authority receives requests for virtual asset licenses fining non compliant VASPs with $2.7 million

According to a recent news release, The UAE’s Securities and Commodities Authority (SCA) has received licensing requests and inquiries from companies intending to provide Virtual Asset services following the issuance of the necessary regulations. The UAE SCA also announced that those who do not apply for a license either to VARA or SCA will be fined $2.7 million.

The move aims to ensure that all companies that provide products and services related to the Virtual Assets sector in the country are fully regulated, as the SCA’s Board of Directors, chaired by Muhammad Ali Al-Shorafa seeks to strengthen the country’s position by ensuring that the local financial markets are among the best globally.

Dr. Maryam Al Suwaidi, CEO of the SCA, stated that pursuant to Cabinet Resolution No. (111) of 2022 regarding the regulation of Virtual Assets and their service providers, which gave the SCA the mandate to issue regulatory decisions for Virtual Asset transactions and license its service providers; the SCA’s Board of Directors issued the necessary decisions, which requires all companies providing Virtual Asset services based in the country (except for companies licensed in Financial Free Zones) to obtain a license from the SCA.

All companies operating in Dubai must only obtain a license from the Dubai Virtual Assets Regulatory Authority (VARA), which will inform the SCA to have a unified register of all licensed Virtual Asset service providers in the UAE.

She added that the Virtual Assets sector is among the modern technological industries included in the SCA’s strategy as one of the pillars for sustainable growth of the UAE’s financial markets.

The SCA called upon all companies that practice any of the Virtual Assets services to submit a request immediately to obtain the necessary approval to avoid being subjected to appropriate legal measures, which the Authority will initiate during the next stage, which may include one or more of the following: a warning, a fine not exceeding (AED10 million) equivalent to $2.7 million, or referring the violator to the Public Prosecution.

The SCA also urged all investors to refrain from dealing with any company that provides Virtual Assets services before ensuring that it has the necessary licenses and approvals to protect their investments and not expose them to any risks.

Oman takes the last step towards developing its virtual assets regulatory framework

Oman takes the last step towards developing its virtual assets regulatory framework

At the end of July 2023, the Oman Capital Market Authority issued a Public Consultation Paper on its Virtual Assets Regulatory Framework.

The Capital Market Authority, Sultanate of Oman (CMA), which regulates and develops Oman’s financial markets for the capital market and insurance sectors, had earlier announced its plans to establish the new regulatory framework for Virtual Assets (VA) and Virtual Asset Service Providers (VASP).

As per the Oman Capital Market Authority announcement, the entity is currently in the process of drafting the comprehensive and facilitative regulatory framework, which will include a new regulation to cover all virtual assets activities, a licensing framework for all VASP categories and a supervisory framework to identify, assess, and mitigate ongoing risks. This is being done after the CMA had made an extensive global analysis and benchmarking with other jurisdictions.

The proposed new regulatory framework is envisaged to cover activities such as crypto assets, tokens, crypto exchanges, and initial coin offerings, among others.

The CMA has invited public and all relevant stakeholders, VASPs, financial institutions, academics, legal firms, consumer groups and other businesses that may be impacted by the VA and VASP frameworks, to provide their views and comments to the public consultation paper. The public consultation paper may be downloaded from the CMA’s website at www.cma.gov.om.

Responses are required within three weeks or before August 17th 2023. Responses to the public consultation paper can be made electronically via email to: kemal.rizadi@cma.gov.om.

In February 2023, Oman CMA announced its plans to develop a regulatory framework for virtual asets and VASPs. To assist in the development of a comprehensive regulatory framework for virtual assets in Oman, the CMA engaged the services of XReg Consulting Limited, an international policy and regulatory consultancy that specializes in virtual assets, and Said Al-Shahry and Partners, Advocates & Legal Consultants (SASLO), an Omani law firm.

Dubai Virtual Assets Regulatory Authority publishes fee’s schedule for various activities

Dubai Virtual Assets Regulatory Authority publishes fee’s schedule for various activities

The Dubai Virtual Assets Regulatory Authority [VARA] has announced a schedule of fees covering the issuance of no-objection certificates to proprietary traders, amendments or withdrawal of licence applications, and the submission of whitepapers for VARA review.

All proprietary traders will require a no-objection certificate to carry out the activity of proprietary trading in or from the Emirate of Dubai. VARA shall confirm its evaluation of a firm’s activity through the firm’s commercial licensor and firms assessed as carrying out the activity of proprietary trading will be required to pay an annual NOC fee of AED 1,000. For the avoidance of doubt, there is no additional fee payable in relation to the requirement for mandatory registration applicable to large proprietary traders (under Regulation IV.A.7).

Licensed firms wishing to amend details of their VARA licence will be charged a licence update fee of AED 500 per request. Licensed firms seeking to withdraw from Dubai and wind down their Virtual Asset operations will be charged a licence withdrawal fee of AED 10,000.

Issuers of Virtual Assets seeking VARA review under VARA’s Virtual Asset Issuance Rulebook will have to pay a whitepaper submission fee of AED 5,000. Firms will then be notified of the subsequent fee (of up to AED 50,000) to be charged for completion of a detailed review. The maximum amount payable for submission and review is therefore AED 55,000.

Submission of amendments to whitepapers (and the detailed review of such amendments) will also be subject to fees of AED 5,000 (for submission) and a further fee for completing a detailed review (of up to AED 50,000). The maximum amount payable for submission and review of an amendment is therefore AED 55,000.

Where legal opinions or memorandums are submitted to VARA for review and consideration of the regulatory perimeter applicable to a firm’s virtual asset activity, a legal review fee of up to AED 4,000 may be charged for a written confirmation to be provided by VARA.

Dubai’s VARA to see several hundred VASPs enter licensing regime as Hong Kong ups its crypto stance

Dubai’s VARA to see several hundred VASPs enter licensing regime as Hong Kong ups its crypto stance

In a recent Forbes piece, it was noted that the virtual asset regulatory authority in Dubai expects to see several hundred virtual assets exchanges and service providers enter its licensing regime. This comes as CEOs of major crypto exchanges laud both UAE and Hong Kong as crypto hubs.

As per Henson Orser CEO of VARA, speaking to Forbes, “VARA makes Dubai one of a handful of global jurisdictions implementing a mature framework for crypto and virtual assets. The VARA framework expects to see several hundred virtual asset exchanges and service providers in Dubai start to come into its licensing regime in 2023.”

At the same time Hong Kong is also competing to get a piece of the crypto and digital asset market with the launch of new crypto licensing regime. In addition Hong Kong’s banking regulator is pressuring financial institutions including HSBC and Standard Chartered to take on crypto exchanges as clients.

In parallel the Central Bank of UAE came out with its new guidance on anti-money laundering and combatting the financing of terrorism (AML/CFT) for Licensed Financial Institutions (LFIs), banks, finance companies, exchange houses, payment service providers, towards virtual assets and Virtual asset service providers. While VARA came out with its virtual asset rulebook for, the virtual assets transfer,  and settlement service. 

Both countries are showing digital asset entities that they are serious for business. In a Yahoo article, Ben Caselin, CEO of Maskex states Dubai and Hong Kong are establishing themselves as crypto hubs by recognizing the potential for virtual assets and blockchain technology.

He explains, “Much of the discussion has focused on whether Dubai, Hong Kong or indeed some other jurisdiction will come out on top. However, the debate is much more nuanced than that. The emergence of Dubai and Hong Kong as crypto centers is really a testament to the power of healthy competition in spurring innovation in the Web3 space.”

He believes that as the U.S. grapples with crypto regulation, there is a real opportunity for other countries to assert themselves on the more level playing field provided by a digital-first global economy. With favorable yet robust regulatory environments, both Dubai and Hong Kong are well-positioned to lead the way.

Despite being on similar paths, Dubai and Hong Kong have different motivations for their push into crypto and the Web3 space. To him Hong Kong wants to reinvigorate the greater Chinese economy, while Dubai seeks to shift its dependence on oil.

Yet he contends that both have recognized the scale of opportunity and understand that by pooling resources they could be at the forefront of a new wave of digital innovation leading advancements in the scalability, privacy and interoperability of blockchains, therefore benefiting the entire crypto ecosystem.

OKX says Dubai’s Virtual asset regulator has given MVP Preparatory license approval …. But… has it really?

OKX says Dubai’s Virtual asset regulator has given MVP Preparatory license approval …. But… has it really?

It s no surprise that global crypto exchanges are flocking to the UAE, first it was Binance, then Kraken which left, then crypto.com, coinbase, and now the second biggest global exchange OKX.

OKX announced unilaterally that it had received a minimal viable Preparatory license from Dubai’s virtual asset regulatory authority (VARA). In 2022 OKX had received its provisional license and opened offices at the Dubai World Trade Centre. 

In the announcement they stressed that the UAE is a key strategic growth and business hub for OKX global with the company planning ot hire 30 staff locals and senior management.

OKX also added that it plans to extend its nine-figure brand partnerships to the UAE with customer and fan-focused activations and activities.

As per the announcement, once licensed to be operational, OKX Middle East will be able to extend its approved suite of duly regulated virtual assets activities and will provide spot, derivatives, and fiat services, including USD and AED deposits, withdrawals and spot-pairs, to institutional and qualified retail customers.

OKX Global Chief Commercial Officer Lennix Lai said, “We’re thrilled to receive the MVP preparatory licence from VARA. Regulated entities are the future of digital assets and capital markets and Dubai and VARA have succeeded in creating a unique environment where VASPs can thrive. With the expansion into a new office this year, we are focused on hiring local staff and senior management. The MENA region has incredible potential as a centre of excellence for Web3 and virtual assets, we look forward to the opportunity to expand the already growing ecosystem across the region.”

OKX Chief Marketing Officer Haider Rafique  added “We’ve been waiting to enter the UAE and we want people here to experience our products first hand. We’re different – we do things in a measured and transparent manner. May was our seventh consecutive month of publishing our proof of reserves, making us the only crypto exchange globally with that commitment. This attitude is consistent with the brand partners who represent us, Manchester City Football Club, McLaren Racing, and the Tribeca Festival. We take our time, and do things the right way.”

But on VARA’s website OKX is not listed in its public register, while Crypto.com, Binance, and BitOasis are. This is despite the fact that both Crypto.com and Binance have the same license approval as OKX.

This is not the first crypto exchange or virtual asset service provider to unilaterally announce they have received a license yet have never been put on VARA’s public register. Examples include, Aquanow, Maskex crypto exchange, Fasset tokenized assets exchange, and many others.

The question that is puzzling is why? Why put some names and not others, why highlight some companies in VARA press releases, like for example BitOasis, Crypto.com, GCEX, Enjinstarter, Binance, Hextrust, , but not Maskex, OKX and many more?

It might seem to be a small discrepancy, but to those who look at the VARA website as a legitimate source for knowing the status of VASP entities regulated in Dubai, it is a significant slip-up or maybe not!

As an update to this article, OKX has now been listed on VARA’s registry page on its website, still waiting to see Maskex, Aquanow and others 

UAE Dubai virtual asset regulator publishes its virtual asset settlements and transfers rulebook

UAE Dubai virtual asset regulator publishes its virtual asset settlements and transfers rulebook

The UAE virtual asset regulatory authority has published its new virtual asset rulebook for, the virtual assets transfer,  and settlement service.  

This comes after the Central Bank of UAE published its guidelines for AML CFT compliance for financial institutions in relations to VASPs in the UAE.

As published in the rulebook, VASPs providing VA Transfer and Settlement Services must comply with all applicable legal and regulatory requirements issued by the Central Bank of UAE which apply to the VASP, which pertain to the end-to-end enablement of payments, remittances and/or other related services as may be amended from time to time.

As per the transfer and settlement service rulebook document, VASPs providing VA Transfer and Settlement Services must ensure that they comply with all legal and regulatory requirements for such services, inside and outside of the UAE. VASPs must ensure at all times that any transmission or transfer, and/or settlement being undertaken is permissible and can be facilitated through, and concluded in, all jurisdictions that are relevant to that transmission or transfer, and/or settlement.

The VASPs also have to comply with the compliance and risk management rulebook. VASPs providing VA Transfer and Settlement Services must comply with all requirements with respect to AML/CFT contained in that Rulebook, including but not limited to FATF-specific compliance requirements such as the Travel Rule.

The VASPs are liable to clients for the correct transmission, transfer or settlement of virtual assets to recipients whether from VASP wallet or VA wallet. VASPs are also responsible for the functioning of VA wallets or accounts of its clients for the purposes of receiving Virtual Assets, as well as providing all routing information that is necessary for a transmission or transfer, and/or settlement to be completed when requested by the sender’s VASP.

In addition VASPs must maintain records of all client instructions for a period of eight [8] years.

With this Dubai and the UAE have now finalized the major crypto and virtual asset rulesbooks, allowing VASPs to offer  transfers, and settlements for virtual assets. 

Crypto trading in Qatar flourishes despite Central Bank ban

Crypto trading in Qatar flourishes despite Central Bank ban

Over the past years and despite the continuous banning of crypto in Qatar by the Qatar Central Bank, crypto trading and investing in Qatar is flourishing reflected in various ways. 

The first reflection of the attractiveness of crypto trading in Qatar is the statement made by Qatar’s Ahli bank, at the end of May 2023. The bank warned customers against, trading, buying and selling virtual assets and currencies through accounts and banking services, citing the reasons as being associated with high risks.

Secondly Triple A report in January 2023 put Qatar’s crypto ownership at 0.9 percent of the population, around 24,000 people. Since then it could be the numbers have increased. Just over a year ago CoinMENA had announced that it was serving clients in Qatar. Even Bahrain’s RAIN crypto broker supports Qatar, as does UAE based BitOasis.

But the third and most significant reflection of the growth of crypto in Qatar is the recent MENA FATF report, where they mention that Qatar needs to work more on improving its risk understanding, implementation of TFS ( Targeted Financial Transactions) and NPO (Nonprofit organizations) preventive measures for virtual assets, and virtual asset service providers.

As mentioned in their report, “ Qatar has a very strong level of compliance with the FATF Standards, with only minor improvements needed in relation to risk understanding, implementation of TFS and NPO preventive measures, VAs and VASPs, wire transfers, transparency for legal persons and arrangements and cross-border movements of cash and BNIs.

So while Qatar has embraced blockchain, digital assets, and is studying the possibility of implementing CBDC, while shunning crypto, the population in Qatar seems to be moving forward with the crypto times.

Crypto.com to receive MVP operational license from VARA soon

Crypto.com to receive MVP operational license from VARA soon

Crypto.com, a global crypto exchange seems it will soon  become the second crypto exchange in Dubai UAE to receive MVP operational license after BitOasis.

VARA’s public register had listed CRO DAX Middle East better known as Crypto.com as having an MVP operational license authorized for specific activities and product types. As stated prior, Crypto.com is only authorized to serve qualified retail and institutional clients, but VARA website has since then removed it and now states it has an MVP preparatory license. 

Sources close to the matter state that this is a sign that an operational license is soon to come. This would make crypto.com the first global exchange to receive an MVP (Minimum Viable Product) operational license from VARA. 

This comes after the UAE Central Bank recently announced its AML (Anti Money Laundering) and FTC for financial institutions dealing with VASPs.

Binance has also yet to receive its operational license and still holds the status of MVP preparatory license.

More and more global crypto exchanges are seeking to set up regulated licenses in UAE.