James Cirrone

Researchers are developing an Ethereum-based blockchain tool called Salsal to help museums and cultural institutions organize and keep track of valuable historical collections.



Mark Altaweel, a professor in the archeology department at the University College of London, has been working on Salsal alongside colleagues at Abu Dhabi University for roughly two years.&nbsp;



Altaweel said putting history on the blockchain would be the first step toward “decolonizing museums” and taking back the past.



“Blockchain…allows a decentralized way in dealing with and managing heritage. So if I have expertise about something, and you have expertise about something, we can all participate in these networks,” he told Blockworks in an interview. 



Expertise is the key thing Salsal needs to achieve wide adoption. Museums and collectors would submit their collections of historical objects to the Salsal blockchain. Experts, such as archaeologists, would then examine each artifact to determine their condition, provenance, and whether they were legally obtained.



Experts on the Salsal network, which will be a partially-private version of Ethereum, will use the Museum Association’s sliding scale rating standard. A rating of one means the collection and/or items were legally and ethically obtained with plenty of documentation. A rating of five means the items “have clear evidence that they were obtained illegally,” according to Salsal’s white paper.



If a collection is shown to be ethically and legally legitimate with enough documentation to reasonably prove where the items came from, “the collector can then turn their collection into NFTs.”



The NFT portion of the Salsal network will be the public aspect of the blockchain, so people will be able to see and purchase them. This has the added benefit of monetarily supporting museums and collectors.



“Cultural institutions tend to have struggles with things like fundraising. So giving some carrots for people to be involved is what the NFTs are for,” Altaweel said.



Obviously, concerns brewed among Altaweel and his colleagues that illegitimate collections could profit with this incentive in place, so they have removed the option for items that don’t meet experts’ standards to be fashioned into NFTs.



Additionally, Altaweel wants to show all the collections they receive — even the ones with a ‘five’ rating — on the blockchain for transparency’s sake. It’s also his strategy for holding museums with shady ethical practices accountable in terms of holding items of historical significance that were stolen from other cultures.



Many have <a href="https://www.theguardian.com/world/2019/nov/04/british-museum-is-worlds-largest-receiver-of-stolen-goods-says-qc">accused</a> the British Museum in London of retaining pilfered items, some of which were taken during colonial conquests by the British Empire. Some examples of these include the Benin Bronzes from Nigeria, the Parthenon Marbles from Greece, and the Rosetta Stone from Egypt.



The governments of <a href="https://www.britishmuseum.org/about-us/british-museum-story/contested-objects-collection/benin-bronzes">Nigeria</a> and <a href="https://www.nytimes.com/2023/01/17/arts/design/parthenon-sculptures-elgin-marbles-negotiations.html">Greece</a> have requested these priceless items back at one point or another. A group of prominent Egyptian archaeologists <a href="https://www.reuters.com/world/middle-east/egypt-calls-return-rosetta-stone-200-years-after-it-was-deciphered-2022-10-05/#:~:text=CAIRO%2C%20Oct%205%20(Reuters),marked%20the%20birth%20of%20Egyptology.">called</a> for the return of the Rosetta Stone in October 2022.



Altaweel wants to discourage situations like this in the future with his tool.&nbsp;



Read more: <a href="https://blockworks.co/news/sandbox-british-museum">Sandbox, British Museum shepherding history into ‘new online era’ with metaverse exhibits</a>



The other inherent use case for Salsal is to have a running, immutable record of the collections stored in museums around the world.&nbsp;



Altaweel brought up how the Baghdad Museum in Iraq was looted during the US invasion of the city in 2003 as part of the US&#8217; war on terror. Anticipating chaos, museum staff vacated the premises two days before the invasion, which allowed thieves to roam the halls and take whatever they wanted. 



In all, 15,000 objects were stolen from the museum, according to a <a href="https://www.sydney.edu.au/news-opinion/news/2018/04/10/iraq-museum-looting--15-years-on.html">2018 analysis</a> by the University of Sydney.&nbsp;



“While 7,000 items have been recovered, more than 8,000 remain unaccounted for, including artifacts thousands of years old from some of the earliest sites in the Middle East,” the university wrote.&nbsp;



Altaweel likes to imagine that a tool like Salsal, with enough adoption by museums around the world, could prevent future acts of cultural vandalism.



If records of all the items in the Baghdad Museum had been in a blockchain, Altaweel argues that “you would not only know what&#8217;s missing, but the community would be involved in looking for these objects.”



Having a record on chain makes it so attestation of ownership and authenticity can’t be destroyed or lost. On-chain storage also allows anyone with an internet connection to view records, which in this case would decentralize control away from museums and better enable the public to help identify and report stolen items, should they reappear in the future.



Altaweel and his colleagues have been pitching Salsal primarily to museums in Abu Dhabi, including the Louvre located in the emirate. They’re also looking to attract funding, something Altaweel said has been tough during the summer.



Salsal is still in its test version, but the overall goal is to launch it on Ethereum within six months, he said.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

Abu Dhabi

Could Ethereum help stop museums from hoarding stolen artifacts? These researchers think so

Katherine Ross

Abu Dhabi’s Financial Services Regulatory Authority granted Rain a Financial Services Permission on Tuesday.



The Bahrain-based crypto company is the first to receive a license to operate as a “regulated brokerage and storage services,” for some retail investors as well as institutions, according to a tweet from the company.



Rain added via Twitter thread, “This permit allows us to usher in a new era for the adoption of virtual assets in the region, as the company will be able, through this permit, to provide services for the purchase, sale and storage of virtual assets to customers, including institutions and a number of individual customers in the United Arab Emirates.”



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">يتيح هذا التصريح الدخول في حقبة جديدة لتبني الاصول الافتراضية في المنطقة، حيث ستتمكن الشركة من خلال هذا التصريح تقديم خدمات شراء الأصول الافتراضية وبيعها وتخزينها للعملاء ومنهم  المؤسسات وعدد من العملاء الافراد في الإمارات العربية المتحدة.&mdash; Rain (@rain) <a href="https://twitter.com/rain/status/1683821225204649985?ref_src=twsrc%5Etfw">July 25, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



CEO Joseph Dellago added some clarity to what this license means for Rain customers. Dellago said “residents will now be able to fund their accounts in minutes” and alluded to a ”partnership with a local UAE bank.”



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">What does this mean for customers? UAE residents will now be able to fund their accounts in minutes, thanks to a partnership with a local UAE bank. Furthermore, customers are further protected through the supervision of a local regulator and thorough legal framework.&mdash; Joseph Dallago (@_jayd3e) <a href="https://twitter.com/_jayd3e/status/1683774864249745409?ref_src=twsrc%5Etfw">July 25, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Rain did not immediately respond to a request for comment.



Yehia Badawy, Rain’s cofounder, said that Rain initially met with regulators in 2018.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">منذ خمس سنوات، قابلنا سلطة تنظيم الخدمات المالية في سوق ابو ظبي العالمي. يسعدنا اليوم الإعلان عن حصول <a href="https://twitter.com/rain?ref_src=twsrc%5Etfw">@rain</a> علي تصريح الخدمات المالية&mdash; Yehia | يحي (@YehiaBadawy) <a href="https://twitter.com/YehiaBadawy/status/1683818981700907009?ref_src=twsrc%5Etfw">July 25, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Abu Dhabi Global Market rolled out a crypto framework back in 2018. At the time, the ADGM said the regulatory framework showed its “ongoing commitment to bolster the economic diversification of Abu Dhabi through innovation and sustainable initiatives.”



In 2021, ADGM’s Shorafa Al Hammadi told Blookworks, “<a href="https://blockworks.co/news/abu-dhabi-ramps-up-effort-to-become-middle-easts-crypto-hub">The whole ecosystem in Abu Dhabi</a> [&#8230;] is working together to make it easy for all the actors of that space, to not only attract them but bring them here, to develop the legal framework.”



<a href="https://blockworks.co/news/kraken-receives-abu-dhabis-first-virtual-asset-exchange-license">Kraken initially sought and received a license</a> in Abu Dhabi in 2022, but the exchange shuttered its office there in February of this year.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

Abu Dhabi grants Rain permit for virtual assets brokerage, custody services

Shalini Nagarajan

Kuwait&#8217;s capital markets regulator banned bitcoin mining this week as they reiterated prohibitions on crypto activities.



The prohibition came down via an official circular released on Tuesday. Kuwaiti authorities had previously only expressed disapproval of crypto payments.



As early as 2017, the local regulator had warned banks and other intermediaries that crypto wasn’t legal tender and prohibited institutions from handling digital assets.



Kuwait is now reinforcing restrictions on institutions and other payment services touching crypto, but so far it seems to have stopped short of outright criminalizing interactions with crypto for individuals.



Still, regulators <a href="https://www.cma.gov.kw/en/web/cma/cma-board-releases/resolutions-and-regulations/-/cmaboardreleases/detail/1384960" target="_blank" rel="noreferrer noopener">stated</a> the use of crypto as a form of payment is strictly prohibited, and residents are advised against engaging in any transactions involving cryptocurrency.



But until now, the regulatory status of crypto mining had been <a href="https://freemanlaw.com/cryptocurrency/kuwait/" target="_blank" rel="noreferrer noopener">ambiguous</a>. The recent circular changes that.



<h2 class="wp-block-heading">Kuwait shuns crypto as neighbors open arms</h2>



Bitcoin mining is a resource-intensive process, requiring specialized equipment and substantial energy consumption — so low energy costs can greatly impact profitability.



Gauging realistic costs of mining bitcoin is difficult. Large-scale operations are often vertically integrated with their own power sources, or have specialized deals for cheaper rates, which can bring down costs.



Still, estimates have previously dubbed Kuwait the most affordable location to mine bitcoin (<a href="https://blockworks.co/price/btc" target="_blank" rel="noreferrer noopener">BTC</a>) worldwide. One <a href="https://www.911metallurgist.com/blog/the-cost-to-mine-different-cryptocurrencies-in-every-country" target="_blank" rel="noreferrer noopener">roundup</a> suggested the cost of mining in Kuwait was just $1,400 per BTC in 2022 compared to more than $18,000 in Texas (bitcoin was worth more than $40,000 at the time).



Local <a href="https://www.arabtimesonline.com/news/government-working-on-dealing-with-miners-of-virtual-currencies/" target="_blank" rel="noreferrer noopener">reports</a> indicated some crypto miners had exploited Kuwait&#8217;s low electricity tariffs by disconnecting home cooling devices in favor of mining rigs to avoid drawing suspicion with high electricity usage.&nbsp;



The Ministry of Electricity and Water reportedly took measures to curb such practices, including cutting off power supplies.



Bitcoin mining aside, Kuwait regulators emphasized that they’re banned from granting licenses to entities for the purpose of offering crypto services as a commercial enterprise.&nbsp;



The capital markets authority warned that any violation of this regulation would be subject to penalties in accordance with the rules pertaining to money laundering and terrorist financing.



In contrast, neighboring Dubai has taken a more inclusive stance towards crypto, positioning itself as an attractive destination for the digital asset ecosystem.&nbsp;



At the beginning of the year, Dubai&#8217;s &#8220;crypto zone&#8221; had already <a href="https://blockworks.co/news/dubai-free-zone-now-home-to-more-than-500-crypto-startups" target="_blank" rel="noreferrer noopener">attracted</a> over 500 crypto companies. 



More specific to mining, major outfit Marathon recently <a href="https://www.globenewswire.com/en/news-release/2023/05/09/2664929/0/en/Marathon-Digital-Holdings-and-Zero-Two-To-Develop-and-Operate-the-First-Large-Scale-Immersion-Bitcoin-Mining-Facilities-in-Abu-Dhabi.html" target="_blank" rel="noreferrer noopener">pledged</a> to open two facilities in nearby Abu Dhabi.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

‘Cheapest country to mine bitcoin’ just banned the practice altogether

Ornella Hernandez

<div id="highlights-block_6299dd9749ad1" class="highlights">
 <ul>
 <li>The announcement comes on the heels of a visit by Women in Web3 to the emirate</li>
 <li>Abu Dhabi is just one of many cities working with Unstoppable Domains, others to be announced throughout the year</li>
 </ul>
 
</div>



Unstoppable Domains, a decentralized domain name provider, is running a giveaway in collaboration with Abu Dhabi firms to ensure each woman residing in the United Arab Emirates (UAE) capital receives a domain name.&nbsp;



The idea came out of a meeting of entrepreneurs from the US-based Women of Web3 organization, Access Abu Dhabi — a program that helps women-led business expand into the UAE — and the Emirati government’s Abu Dhabi Investment Office (ADIO).



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><a href="https://twitter.com/unstoppableweb?ref_src=twsrc%5Etfw">@unstoppableweb</a> is giving free <a href="https://twitter.com/hashtag/crypto?src=hash&amp;ref_src=twsrc%5Etfw">#crypto</a>, <a href="https://twitter.com/hashtag/NFT?src=hash&amp;ref_src=twsrc%5Etfw">#NFT</a>, and <a href="https://twitter.com/hashtag/blockchain?src=hash&amp;ref_src=twsrc%5Etfw">#blockchain</a> domains to all women in <a href="https://twitter.com/hashtag/AbuDhabi?src=hash&amp;ref_src=twsrc%5Etfw">#AbuDhabi</a>! In partnership with Access Abu Dhabi, powered by <a href="https://twitter.com/hashtag/ADIO?src=hash&amp;ref_src=twsrc%5Etfw">#ADIO</a>, the initiative aims to give women in Abu Dhabi the opportunity to enter the world of <a href="https://twitter.com/hashtag/Web3?src=hash&amp;ref_src=twsrc%5Etfw">#Web3</a> and be part of shaping the future🌐 <a href="https://t.co/WvLFxcIdAV">pic.twitter.com/WvLFxcIdAV</a>&mdash; Abu Dhabi Investment Office (@InvestAbuDhabi) <a href="https://twitter.com/InvestAbuDhabi/status/1532298549144207361?ref_src=twsrc%5Etfw">June 2, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The mission of the initiative, according to Unstoppable Domains&#8217; Senior Vice President Sandy Carter, is to give power back to the people. A “domain in Web3 is actually a domain with superpowers,” she said.



Each Unstoppable Domain web name is an NFT that is minted and sold like any other non-fungible token. While users can usually choose whatever domain they want, if available, the giveaway will allow people to secure their given names. The most popular top level domains are .nft, .crypto and .888 — which is popular in China and among Abu Dhabi’s large Chinese population, Carter said.



Tying a domain name to a singular, portable digital identity, whether from Unstoppable Domains or one from competitors such as Ethereum Name Service (ENS), enables the holder to replace complicated crypto wallet addresses and have more control over their data.&nbsp;



Carter told Blockworks that Unstoppable Domains’ vision is to help cities that are interested in educating their citizens on Web3 to get started. Abu Dhabi was the chosen location to kick-start this initiative that aims to educate its citizens on Web3 and support businesswomen. Other cities will be announced throughout the year, according to the company.



Sarah Omolewu, managing partner of Maven Global Access and founder of Access Abu Dhabi, said in a statement, &#8220;In a market of expats from more than 200 countries, this initiative could potentially impact the lives of generations of women around the world.&#8221;



She added that more and more women are recognizing the value that blockchain technologies have in growing and funding their businesses. But the biggest barrier to entry is making educational opportunities accessible and widespread.&nbsp;



That’s why earlier this year, Carter <a href="https://www.prnewswire.com/news-releases/unstoppable-women-of-web3-launches-diversity-and-education-initiative-with-10-million-grant-by-unstoppable-domains-301497231.html" target="_blank" rel="noreferrer noopener">founded</a> the networking and training group “Unstoppable Women of Web3,” made up of a coalition of companies including Blockchain.com, Deloitte, Google Cloud, Polygon and Consensys. Unstoppable Domains pledged to distribute over $10 million worth of NFT domains to support women in their Web3 journey. 



Public figures including supermodel Tyra Banks represented America at the Women in Web3 delegation visit from May 24-26 in Abu Dhabi. Kevin O’Leary, &#8220;Shark Tank&#8221; personality and businessman, is an ambassador of Access Abu Dhabi but was not present at the meeting.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

Unstoppable Domains Gifted Blockchain Domain Names to 1M Women in Abu Dhabi

Ben Strack

<div id="highlights-block_6266b69dd1205" class="highlights">
 <ul>
 <li>Kraken seeks to allow investors in the region to trade, withdraw and deposit bitcoin and ether directly in Emirati dirham</li>
 <li>The Abu Dhabi Global Market (ADGM) launched its crypto framework in 2018</li>
 </ul>
 
</div>



Kraken is set to expand its footprint to the United Arab Emirates, but unlike some of its competitors, the exchange is opting for Abu Dhabi rather than Dubai.&nbsp;



The company announced that it has become the first exchange to receive a full financial license to operate as a regulated virtual asset exchange platform in the Abu Dhabi Global Market (ADGM).



Kraken will launch its crypto exchange there in the “near future,” according to a Monday statement. It has set up an office and executive team in Abu Dhabi and plans to scale post-launch.



The exchange seeks to bring the ability for investors in the region to trade, withdraw and deposit bitcoin and ether directly in the local currency, Emirati dirham. Regional investors currently must first convert dirhams into dollars, euros, British pounds and other foreign currencies to access crypto trading and investing.



Founded in 2011, Kraken has about nine million clients across 60 countries. A Kraken spokesperson did not immediately return a request for comment.&nbsp;



The ADGM <a href="https://www.adgm.com/media/announcements/adgm-launches-crypto-asset-regulatory-framework" target="_blank" rel="noreferrer noopener">launched its framework</a> to regulate spot cryptoasset activities in 2018 in an effort to “bolster the economic diversification of Abu Dhabi through innovation and sustainable initiatives.”



Binance <a href="https://www.adgm.com/media/announcements/binance-awarded-in-principle-approval-for-a-financial-services-permission-from-adgm" target="_blank" rel="noreferrer noopener">received an initial approval</a> from ADGM regulators to operate as a broker-dealer in virtual assets earlier this month as part of its plans to become a fully-regulated virtual asset service provider.&nbsp;



Kraken’s competitor gained licenses to be a crypto service provider in Dubai and Bahrain, Bloomberg News reported last month.



Crypto exchange FTX also <a href="https://cms.blockworks.co/ftx-granted-crypto-license-with-dubai-hq-in-sights/" target="_blank" rel="noreferrer noopener">received a license</a> to operate within the UAE last month and seeks to establish a regional headquarters in Dubai. The news came as the emirate of Dubai — one of seven within the UAE — adopted its <a href="https://www.reuters.com/world/middle-east/dubai-adopts-first-law-governing-virtual-assets-ruler-2022-03-09/" target="_blank" rel="noreferrer noopener">first piece of crypto legislation</a> and established a regulator to monitor the sector.



Representatives for Binance and FTX did not immediately return requests for comment about offerings and plans within the region.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>
</ul>

Kraken Receives Abu Dhabi’s First Virtual Asset Exchange License

Dan Keeler

<div id="highlights-block_61cb5832ffd67" class="highlights">
 <ul>
 <li>Abu Dhabi’s determination to become a crypto hub is part of its effort to reduce its reliance on oil and gas</li>
 <li>Regulators are focused on anti-money-laundering, tech governance systems and controls, protecting client money, custody and exchange-operations risks</li>
 </ul>
 
</div>



Abu Dhabi, the capital of the United Arab Emirates, is stepping up its efforts to attract crypto-focused businesses as it seeks to become the leading cryptocurrency center in the Middle East.



In an interview with Blockworks, the Chairman of the Abu Dhabi Department of Economic Development, Shorafa Al Hammadi, said the government of Abu Dhabi had set itself a deadline of the end of this year to “ease passporting between digital cryptocurrency exchanges to ‘normal’ instruments.”



The emirate is already among the global leaders in developing a crypto-friendly regulatory environment, having established an initial framework in 2018, according to the CEO of Abu Dhabi’s Financial Services Regulatory Authority, Emmanuel Givanakis. “At that time, the industry was already talking about needing to come under a regulatory umbrella, and we came out with what we think is a fairly comprehensive framework,” Givanakis told Blockworks. 



Abu Dhabi’s neighbor and fellow emirate, Dubai, is also keen to attract digital-assets firms and last week <a href="https://www.dwtc.com/en/press/dwtca-signs-agreement-with-binance-to-participate-in-the-worlds-first-virtual-asset-ecosystem-2021" target="_blank" rel="noreferrer noopener">revealed</a> that it enlisted Binance to help it develop an “international virtual asset ecosystem.” Binance <a href="https://cms.blockworks.co/binance-scores-regulatory-win-in-bahrain-as-exchange-continues-mea-focus/" target="_blank" rel="noreferrer noopener">announced</a> on Dec. 27, 2021, that it has also received approval for a license-in-principle in Bahrain. 



Two regulated digital asset exchanges — <a href="https://www.matrix.co" target="_blank" rel="noreferrer noopener">Matrix Exchange</a> and <a href="https://midchains.com" target="_blank" rel="noreferrer noopener">Midchains</a> — are already operating in Abu Dhabi and a third, <a href="https://dex.ae" target="_blank" rel="noreferrer noopener">DEX</a>, is due to commence full operations soon, according to Al Hammadi.



<div class="wp-block-image"><figure class="alignleft size-medium"><img loading="lazy" decoding="async" width="300" height="200" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-300x200.jpeg" alt="" class="wp-image-13254" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-300x200.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-300x200.jpeg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-300x200.jpeg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-300x200.jpeg?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-300x200.jpeg?w=392 392w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-300x200.jpeg?w=329 329w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-300x200.jpeg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-300x200.jpeg?w=1200 1200w" sizes="auto, (max-width: 300px) 100vw, 300px" /><figcaption><meta charset="utf-8">Shorafa Al Hammadi, chairman, Abu Dhabi Department of Economic Development</figcaption></figure></div>



“The whole ecosystem in Abu Dhabi…is working together to make it easy for all the actors of that space, to not only attract them but bring them here, to develop the legal framework, to find what are the pain points worldwide so we can remove them, and have a very strong robust regulatory framework for those people,” Al Hammadi said.















Abu Dhabi’s determination to become a crypto hub is part of its effort to recast its economy to reduce its reliance on oil and gas. As part of this effort, the emirate is focusing on innovation in financial technology, providing the private sector with a fintech sandbox where they can test their products in a live environment to ensure they meet the UAE’s strict anti-money-laundering (AML) and other regulatory standards. 



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“The number-one risk we are focused on is AML, but tech governance systems and controls, protecting client money, custody and exchange-operations risks are all really important risks for us,” Givanakis said. “We needed to develop systems to monitor these frameworks.”</blockquote>



Amy Oldenburg, head of emerging market equities at Morgan Stanley Investment Management, said a challenge for regulators is ensuring they don’t stifle innovation as they try to protect investors. “It’s really important for business operators that the regulators think about…how to allow for innovation and the adaptation necessary as things change,” she told Blockworks. “The UAE and Abu Dhabi seem to be striking the right balance between putting regulation around [crypto] but not so much that they’re constraining the growth and the exploration that will continue to happen for many years going forward.”



Givanakis said Abu Dhabi’s efforts to ensure it has a comprehensive regulatory framework for a broad range of digital securities, including digital funds and derivative products, are helping it attract international interest. “We’re one of the few places they feel they can establish and people try to understand them and try to understand how to regulate them,” he said.



<hr class="wp-block-separator"/>



Get the day’s top crypto news and insights delivered to your inbox every evening. <a href="https://cms.blockworks.co/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a> now.



<hr class="wp-block-separator"/>

Abu Dhabi

Newsletter

Blockworks Research