UAE

Binance, crypto firms optimistic about UAE amid potential US regulatory shift

Ghaf Capital managing partner Feras Al Sadek argued that the UAE’s “regulation by education” sets it apart from other jurisdictions.

Binance and other cryptocurrency firms based in the United Arab Emirates are optimistic that the country will remain a hotspot for virtual assets despite a potential shift to the United States should the Western superpower become a more crypto-friendly jurisdiction.

The “regulation by enforcement” regime in the U.S. has pushed global crypto firms to move to locations such as the UAE, the United Kingdom, Switzerland, and Singapore. However, the idea that companies could potentially return to the U.S. should there be a change in direction was floated during a panel discussion on Dec. 11 at the Global Blockchain Congress event in Dubai.

Highlighting the UAE’s approach toward technology and innovation, Alex Chehade, Binance’s general manager for the Middle East and North Africa, said the local government has built infrastructures around numerous initiatives that encompass not just AI but also Web3, sustainability, and other verticals:

Dubai regulator grants crypto license to Bahrain’s CoinMENA

The permit allows CoinMENA to provide retail and institutional customers in the United Arab Emirates with the ability to deposit and withdraw in UAE dirhams.

Dubai’s Virtual Assets Regulatory Authority (VARA) has awarded a virtual asset service provider (VASP) license to Bahrain-headquartered cryptocurrency exchange CoinMENA to operate and offer services in and from the Emirates.

The license acquired by CoinMENA FZE, the Dubai subsidiary of CoinMENA B.S.C., permits the platform to offer virtual asset broker-dealer services, the Dec. 12 announcement shared with Cointelegraph said. It comes a year after the platform obtained a provisional license from the Dubai regulator.

The exchange said it is already in partnership with digital banking platform Zand.

Dubai awards conditional crypto license to climate-friendly Web3 firm

AYA is a climate-focused launchpad that supports innovations around sustainability, such as reforestation, nature credits, mangrove conservation and sustainable agriculture.

Dubai’s Virtual Assets Regulatory Authority (VARA) granted a conditional license to Enjinstarter’s AYA platform for offering crypto asset and investment services.

On Dec. 11, the Dubai arm of Web3 launchpad and advisory firm Enjinstarter received a crypto license subject to fulfilling certain conditions before the commencement of services. After meeting all the requirements of VARA, the platform will be subject to regulatory verification and approval. The announcement read:

Enjinstarter has not yet responded to Cointelegraph’s request for comments about the outstanding regulatory prerequisites. However, in the official announcement, Prakash Somosundram, the co-founder and CEO of Enjinstarter and the AYA foundation, shared the company’s willingness to comply with the process laid out by VARA.

Binance says decision to pull Abu Dhabi licensing bid unrelated to US settlement

Former Binance CEO Changpeng Zhao, who pleaded guilty to one felony count in the United States in November, may not be able to return to the UAE before being sentenced.

Cryptocurrency exchange Binance’s unit in Abu Dhabi has pulled an application with the Emirate’s financial regulator, a move it claims was unrelated to the firm’s November settlement with authorities in the United States.

In a statement to Cointelegraph on Dec. 7, a Binance spokesperson said the exchange had chosen not to move forward with an application with Abu Dhabi’s Financial Services Regulatory Authority following an assessment of its “global licensing needs.” The agreement, withdrawn by BV Investment Management in November, would have allowed Binance to manage a collective investment fund.

The spokesperson said Binance’s decision was “unrelated” to a $4.3 billion settlement with U.S. authorities, in which Changpeng “CZ” Zhao pleaded guilty to one felony charge and stepped down as CEO. Binance’s former head of regional markets, Richard Teng, succeeded CZ and told Cointelegraph the exchange was “totally different” following the deal.

Phoenix seals $380M deal with WhatsMiner for green Bitcoin mining

Phoenix Group is acquiring hydro cooling mining equipment from WhatsMiner worth over $136 million, with the option of an additional $246-million purchase.

United Arab Emirates firm Phoenix Group has disclosed a new purchase of hardware equipment from WhatsMiner, aimed at expanding its portfolio of hydro cooling rigs. According to an announcement on Dec. 7, the $380-million deal represents WhatsMiner’s largest order in two years.

Under the agreement, Phoenix received mining equipment valued at $136 million, with an additional option worth $246 million available. WhatsMiner’s line of hydro cooling equipment was released in 2022, with current prices ranging from $1,008 to $2,484, according to the company’s website.

WhatsMiner’s hydro cooling hardware uses a closed-loop water system, preserving the volume and quality of water inside pipes. According to the company, the system offers more efficient heat transfer since water is a more effective heat conductor than air or oil. The benefits of this system include a reduction in operational costs and a minimized environmental impact, the company claims.

Bitcoin miner Phoenix surges 50% after $371M Abu Dhabi IPO

Crypto mining firm Phoenix Group has debuted trading on the Abu Dhabi Securities Exchange, with the stock opening at $0.6.

Cryptocurrency mining firm Phoenix Group has debuted trading on the Abu Dhabi Securities Exchange (ADX), becoming one of the Middle East’s first publicly listed industry firms.

The Phoenix Group stock price opened at 2.25 dirhams ($0.6) on Dec. The price has soared as much as 50% from the initial public offering (IPO) price of 1.50 dirhams ($0.41) as per the Phoenix IPO prospectus.

The public listing comes a few weeks after Phoenix Group successfully closed its IPO with an oversubscription of 33 times on Nov.

The cryptocurrency miner aims to use the IPO proceeds to fund its future growth and deliver positive returns for investors. According to Phoenix Group co-founder and CEO Bijan Alizadeh, the company’s ambitions are anchored by four pillars: “innovation in Bitcoin mining, renewable energy ventures, advanced manufacturing capabilities and strategic acquisitions.”

Founded in 2015 by Alizadeh and Munaf Ali, Phoenix is a major company in the Middle East blockchain industry, collaborating with major regional authorities. In August 2023, Phoenix signed an agreement to build a $300 million crypto mining farm in Oman in the presence of Omani Minister of Transport Saeed Al Maawali and chairman of the Abu Dhabi Stock Exchange, Hisham Malak.

One of the main aspects of Phoenix’s vision is its commitment to sustainability in cryptocurrency mining or using renewable sources for cryptocurrency mining.

IOTA makes 40%+ move after $100M ecosystem foundation announcement

IOTA price saw a high volume surge that took the altcoin to a near one-year high, but are there reasons to support further upside?

Iota, an open-source distributed ledger focused on the Internet of Things (IoT), saw its native IOTA token rally 43% on Nov.

According to a press release from the project, the foundation will be seeded with $100 million in IOTA tokens, which will be vested over a four-year period.

Historically, ecosystem and developer incentives by blockchain and DeFi protocols tend to attract liquidity to the project and boost market participants’ sentiment.

In August 2021, Avalanche’s AVAX (AVAX) token went on a 1,400% tear after the announcement of the Avalanche Rush decentralized finance (DeFi) incentive program.

A similar outcome was seen with Trader Joe’s JOE token in the months following December 2022 after the DeFi protocol announced plans to establish a presence on Arbitrum.

Currently, the Arbitrum ecosystem is hosting liquidity and developer incentives, and these initiatives align with the recent 62% resurgence in the ARB token’s price.

Was IOTA’s price move another sell-the-news event?

On Nov.

$IOTA

Funding Rate and Long/Short ratio at historical low! pic.twitter.com/wloZNoLMxu

— Coinalyze (@coinalyzetool) November 30, 2023

Traders often interpret funding rates and longs-to-shorts ratios as sentiment gauges and indicators of how active investors are positioned.

Crypto investment platform Fasset granted operational license in Dubai

Fasset has been granted a Virtual Asset Service Provider (VASP) license from regulators in Dubai, allowing it to perform broker-dealer services legally in the emirate.

Digital asset investment platform Fasset was granted an operational license on Nov. 29, according to a listing on the Dubai Virtual Asset Regulatory Authority (VARA) website.

The Virtual Asset Service Provider (VASP) license granted to Fasset allows it to perform broker-dealer services legally in Dubai.

The company was initially based in London, though it now operates in Indonesia and Dubai.

Cointelegraph contacted Fasset for comment and additional information on the development but has not yet received a reply.

VARA, the issuing regulator, is the sole authority for enforcing regulations on digital assets in Dubai. Earlier in November, the VARA shuffled around its leadership as it prepared to expand operations and “ramp up to full-scale market operations” in 2024.

Dubai regulator demands Binance provide info on ownership, governance: Report

According to Bloomberg, the Dubai crypto regulator is also seeking similar details from other global crypto players.

The Virtual Assets Regulatory Authority (VARA), the entity that oversees crypto activities in Dubai, has asked Binance to provide more information about its business requirements in its efforts to tighten regulatory guardrails in the emirate, Bloomberg reported.

Citing three anonymous sources, Bloomberg reported on April 5 that the regulator had asked Binance to submit more information about the exchange’s ownership structure, governance and auditing processes. The people close to the matter said VARA has requested the same details from global crypto players looking to be licensed in Dubai.

VARA officials have also required Binance to provide similar information, on top of board procedures, at its global group level, with queries taking longer to address given the exchange’s size and complexity, two of the sources said.

The increased scrutiny over virtual assets service providers (VASPs) in Dubai adds to Binance’s woes as it faces more pressure from regulators in the United States.

Last week, the United States Commodity Futures Trading Commission filed a lawsuit against Binance and its CEO, Changpeng Zhao, alleging that the exchange engaged in improper compliance procedures and trading.

Zhao has since rejected the claims, calling them “an incomplete recitation of facts” and saying that Binance “does not trade for profit or ‘manipulate’ the market.”

My Response to the CFTC Complaint | Binance Blog https://t.co/TadyotM7HN

— CZ Binance (@cz_binance) March 27, 2023

Binance received a preparatory minimal viable product (MVP) license from VARA in September last year. The permit allows the platform to set up an office in the United Arab Emirates and provide digital asset exchange services to pre-qualified investors. However, the company can’t yet offer locally regulated digital asset services in the emirate.

The largest crypto exchange by trading volume would need to submit the necessary requirements to VARA to upgrade to an operational MVP license, which would allow it to offer its services to qualified individual and institutional investors, before securing a full market product permit.

Currently, only digital asset custodian Hex Trust has secured an operational MVP license from the Dubai regulator.

According to VARA’s website, VASPs already providing their services must comply with their requirements before the end of June.

Magazine: Best and worst countries for crypto taxes — Plus crypto tax tips

UAE central bank signs deal for CBDC strategy

The CBDC strategy was first unveiled in February as part of the central bank’s program to position the UAE as a global financial hub.

The Central Bank of the United Arab Emirates (CBUAE) is inching closer to fully launching its central bank digital currency (CBDC) — the digital dirham — for domestic and cross-border payments.

According to an announcement on March 23, the CBUAE signed an agreement with Abu Dhabi’s G42 Cloud and digital finance services provider R3 to be the infrastructure and technology providers of the CBDC implementation.

In addition to addressing the challenges of domestic and cross-border payments, the central bank says it will also help boost financial inclusion as the country looks to become a “cashless society.”

The first phase of the CBDC strategy consists of the soft launch of “mBridge,” which facilitates CBDC transactions for international trade, along with proof-of-concept work for bilateral CBDC bridges with India, and domestic CBDC issuance for wholesale and retail use. This stage is expected to be completed in the next 12–15 months, the announcement said.

During the initial unveiling of the strategy on Feb. 12, the CBUAE governor Khaled Mohamed Balama said:

“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.”

While the UAE looks to push the boundaries of CBDC use cases, debates over the asset’s viability in the United States continue.

On March 21, Republican Senator Ted Cruz introduced a bill to block the U.S. Federal Reserve from issuing a “direct-to-consumer” CBDC over fears of it becoming a spying tool.

Meanwhile, a study released by a division of the U.S. Treasury claimed that integrating a CBDC into the economy would destabilize banks , calling the harm it could cause to banking “significant” in times of stress.

Nigeria, on the other hand, Nigeria is witnessing increased adoption of its eNaira, as paper currency faces severe shortages. The total number of CBDC wallets in Nigeria sits at 13 million, growing more than 12 times compared with October 2022.

As of March, 114 countries, representing over 95% of the global GDP, are exploring CBDCs. 65 nations are already in advanced stages, according to the U.S.-based think tank, the Atlantic Council.