Shalini Nagarajan

Dubai says it has now attracted more than 500 crypto companies to the wealthy Middle Eastern city’s budding digital asset ecosystem.



The Dubai Multi Commodities Centre (DMCC) <a href="https://cms.dmcc.ae/news/dmcc-attracts-3049-businesses-dubai-2022-reaching-22000-member-companies-through-another-record-year" target="_blank" rel="noreferrer noopener">said</a> Monday it registered around 3,000 new businesses last year, representing a 23% jump from 2021.



Of those, 343 were digital asset startups joining DMCC&#8217;s “Crypto Center,&#8221; the group told Blockworks, which would mean around 150 crypto-related startups were added in 2021.



The DMCC is the city’s flagship free zone which gives tax breaks and other benefits to startups. It launched a crypto hub in 2021, located in a 68-storey skyscraper in the Jumeirah Lake Towers area of Dubai. 



The center is meant to serve as a coworking and networking space for entrepreneurs in the crypto and blockchain sectors.



While crypto technically falls under the Virtual Assets Regulatory Authority (VARA) purview, the Securities and Commodities Authority (SCA) — a UAE federal agency — is also responsible for some oversight of the digital asset industry.



“Backed by a strong regional macroeconomic landscape, DMCC has been efficiently accelerating its growth strategy throughout 2022, focusing on supporting its member companies in high-impact sectors such as Web3 and blockchain technologies, commodities and global trade,” said DMCC CEO Ahmed Bin Sulayem.



A number of crypto firms <a href="https://blockworks.co/news/crypto-seeks-freedom-in-the-uae-is-it-a-regulatory-rug-pull" target="_blank" rel="noreferrer noopener">began setting up in the UAE last year</a> to take advantage of the region’s ambitions to thrive as a crypto hub. 



Major crypto companies with provisional licenses, such as <a href="https://blockworks.co/news/binance-granted-license-to-operate-in-dubai" target="_blank" rel="noreferrer noopener">Binance</a> and <a href="https://blockworks.co/news/crypto-com-secures-provisional-approval-to-open-crypto-exchange-in-dubai" target="_blank" rel="noreferrer noopener">Crypto.com</a>, haven’t opted to join the DMCC per its member <a href="https://www.dmcc.ae/business-search?directory=1&amp;submissionGuid=0b2cf711-289f-4492-8e87-fbbc3a5a2e04">directory</a>. But the DMCC highlighted a number of metaverse-centric startups on its member list.



Despite the promotion and supposed ease of setting up there, some have found their entrepreneurial journeys complicated as the due diligence process can be taxing.



The center <a href="https://gulfbusiness.com/dmcc-crypto-centre-vc-firm-brinc-to-provide-members-access-to-150m-accelerator-fund/" target="_blank" rel="noreferrer noopener">reportedly</a> partnered with Hong Kong-headquarterd venture capital firm Brinc last October. Brinc said it would offer potential funding opportunities to DMCC crypto startups through its $150 million accelerator vehicle.



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

Dubai Free Zone Now Home to More Than 500 Crypto Startups

Sebastian Sinclair

<div id="highlights-block_63079dcadb044" class="highlights">
 <ul>
 <li>A raft of exchanges hope to take advantage of United Arab Emirates&#8217; digital asset ambitions</li>
 <li>But seemingly friendly jurisdictions have turned out to be regulatory nightmares in the past</li>
 </ul>
 
</div>



The United Arab Emirates (UAE) has become a primary target for plucky crypto businesses seeking to tap a lucrative market — but questions remain as to whether the region will live up to the hype.&nbsp;



Earlier this year, the Emirate of Dubai adopted a new law designed to clarify exactly how local regulators will police the nascent asset class, ushering in leading crypto exchanges including Binance, FTX and Crypto.com.



The <a href="https://dlp.dubai.gov.ae/Legislation%20Reference/2022/Law%20No.%20(4)%20of%202022%20Regulating%20Virtual%20Assets.pdf" target="_blank" rel="noreferrer noopener">law</a>, part of the UAE&#8217;s ambitions to become a major crypto hub, proposes legal definitions for digital assets. It establishes a licensing regime and lays out penalties should firms be found operating out-of-bounds.



It also birthed the Virtual Assets Regulatory Authority (VARA), the primary crypto watchdog for Dubai responsible for stamping out money laundering and terrorism financing.



The law does, however, exclude activities within the Dubai International Finance Centre (DIFC), a sort of economic free zone with its own set of digital asset regulations policed by the Dubai Financial Services Authority.



Indeed, the UAE — technically one country — is legally complicated. Dubai is just one of four jurisdictional authorities, including a federal agency.&nbsp;



Abu Dhabi, the capital, touts itself as the world’s first jurisdiction to introduce a “comprehensive and bespoke” regulatory framework for crypto, running parallel to Dubai’s licensing and policing measures.



The region has long had its own set of rules within the Abu Dhabi Global Market (ADGM) — another free zone — via <a href="https://www.adgm.com/documents/legal-framework/guidance-and-policy/fsra/guidance-on-regulation-of-virtual-asset-activities-in-adgm.pdf?la=en&amp;hash=2E446E61E82CB1252B499B56B485396D" target="_blank" rel="noreferrer noopener">guidance</a> issued under a subsection of the Financial Services and Markets Regulations of 2015, which was later implemented in 2018.



A separate agency, the Financial Services Regulatory Authority, is charged with overseeing digital asset activity within the ADGM.



<h3>UAE pushes crypto clarity</h3>



Dubai and Abu Dhabi’s frameworks attempt to offer enough clarity for crypto firms to carve a foothold in the Middle East.



“I think the main lure is the perceived ease of getting licensed or regulatory approval to set up a crypto business there,” Adrian Tan, Matrix’s former chief risk officer, told Blockworks in an interview. Matrix became Abu Dhabi’s <a href="https://www.khaleejtimes.com/business/matrix-launches-first-abu-dhabi-regulated-virtual-assets-trading-platform" target="_blank" rel="noreferrer noopener">first regulated virtual asset trading platform</a> almost a year ago.



“Personally, if I were to set up a business there, I would find the various systems and rules difficult and confusing to navigate,” Tan said.&nbsp;



Tan, who has migrated back to his home state of Singapore after spending some time in Abu Dhabi, said it was tricky for crypto businesses to find footing in the UAE, as banks are regulated under various central banking authorities, each with differing regulations.



Crypto-friendly jurisdictions do exist, including Singapore, which is home to numerous prominent crypto exchanges despite Binance’s <a href="https://asia.nikkei.com/Spotlight/Cryptocurrencies/Binance-shuts-down-Singapore-cryptocurrency-exchange" target="_blank" rel="noreferrer noopener">pullout announced in December</a>. But mostly, they’re exotic tax havens. The Bahamas — where <a href="https://cms.blockworks.co/bahamas-becoming-crypto-hub/" target="_blank" rel="noreferrer noopener">FTX</a> recently pitched a headquarters — as well as the Seychelles and the Cayman Islands are industry favorites.



Those regions all appear to offer friendlier crypto regulation, making for smoother sailing. Yet part of the UAE’s draw, according to crypto industry participants, is that the region offers a prestigious appeal based loosely on the promise of maintaining a clear working relationship with regulators.



When asked whether Dubai would fall short of expectations in years to come — similar to how the nation of Malta had promised much to crypto businesses applying for licenses in 2018 before relegating them to <a href="https://cryptolawinsider.com/the-maltese-deception-the-crypto-hub-that-never-came-to-be/" target="_blank" rel="noreferrer noopener">regulatory purgatory</a> — Tan demurred.



“I think it’s still early days to make a call on that. They [Dubai] have announced their intentions just recently and are still in the midst of setting up VARA. So, regulations are less mature which also means less arduous than say Singapore at this time. That’s probably one of the attractions.”



San Francisco-headquartered Kraken, which became Abu Dhabi’s <a href="https://cms.blockworks.co/kraken-receives-abu-dhabis-first-virtual-asset-exchange-license/" target="_blank" rel="noreferrer noopener">first crypto exchange</a> to receive a Financial Services Permission (FSP) license from the ADGM in April, recently set up an office and team on the ground.



The decision was part of a three-year-long “deliberate choice” as it weighed up various factors, including the region’s regulatory framework and <a href="https://business.yougov.com/content/41850-two-thirds-uae-adults-are-interested-cryptocurrenc" target="_blank" rel="noreferrer noopener">crypto adoption rate</a>, Benjamin Ampen, Kraken’s managing director of MENA, told Blockworks in an interview.



“The Middle East is one of the fastest growing crypto regions in the world. There is clear interest. There is also proof of business,” Ampen said.



Ampen pointed to Emirati state-owned sovereign wealth fund <a href="https://twitter.com/CNBCMiddleEast/status/1470242071453716480?s=20&amp;t=q3OTKTMmL793TBb560nBAw" target="_blank" rel="noreferrer noopener">Mubadala</a> and its crypto endeavors in late 2021 as proof of a growing appetite for digital assets. Mubadala’s <a href="https://annual.mubadala.com/" target="_blank" rel="noreferrer noopener">total assets under management</a> stood at roughly a quarter of a billion dollars by the end of last year.



“We can’t control what a country or regulator does, but having a long-term relationship and years of trust will help,” Ampen said.



<h3>VARA isn&#8217;t exactly a light touch</h3>



Binance and Crypto.com also told Blockworks that conversations with the region’s regulators to date had been amicable and “progressive” as they both seek to fit into the framework initiated in February.&nbsp;



“[The UAE] is looking to make business easier,” a Crypto.com spokesperson said. “It&#8217;s an attractive place to live, of course, you know apart from the few sticky months in the summer, but the weather, climate, economy, it&#8217;s all been reasonably positive.”



Provisional licenses to operate in Dubai have also been scored by the likes of <a href="https://cms.blockworks.co/okx-to-expand-in-uae-after-dubai-regulatory-approval/" target="_blank" rel="noreferrer noopener">OKX</a>, <a href="https://cms.blockworks.co/crypto-custodian-komainu-follows-exchanges-to-dubai/" target="_blank" rel="noreferrer noopener">Komainu</a> and <a href="https://www.khaleejtimes.com/business/huobi-to-open-regional-hq-in-dubai-after-provisional-approval-from-vara" target="_blank" rel="noreferrer noopener">Huobi</a>. But the term “provisional” means they can’t offer any crypto services just yet.



Tim Buyn, global government relations officer at OKX’s parent firm, said even though VARA has been accessible and open to questions, it doesn’t have a light regulatory touch. “The due diligence process has easily over 100 data items or documents that we need to turn in,” he said, explaining there are steps to the process.



“It means that the regulator is confident enough to proceed, whereas other regulators do not use this framework. They simply wait until they give you the full license,” Buyn, who has held multiple regulatory roles himself for 16 years, added. OKX has about 10 employees in Dubai so far, but it expects to increase that number markedly.&nbsp;



VARA is currently in the process of drafting its full suite of digital asset regulations. These will enable the Dubai World Trade Centre (DWTCA), which aims to become a <a href="https://www.arabianbusiness.com/industries/banking-finance/dubai-world-trade-centre-announces-plan-to-become-crypto-hub" target="_blank" rel="noreferrer noopener">hub</a> for crypto companies, to issue crypto licenses.&nbsp;



Full licensing is planned to begin at the end of this year, the Centre told Blockworks. So, any exchange that has received provisional approval is effectively stuck until then.



“DWTCA will aim to issue licenses to a wide range of VAs (virtual assets) and VASPs (virtual asset service providers) including digital assets, products, operators and exchanges. The final list of licenses shall be released once the new regulations for VAs and VASPs are finalized,” a spokesperson said.



<h3>UAE boasts wealthy investors, Dubai has no crypto taxation</h3>



The UAE is among the top <a href="https://www.gfmag.com/global-data/economic-data/richest-countries-in-the-world">10 richest countries</a> in the world and is estimated to have 92,600 US-dollar <a href="https://www.arabianbusiness.com/industries/banking-finance/uae-ranked-worlds-top-millionaire-destination-in-2022-as-a-powerful-magnet-for-talent-and-capital#:~:text=Millionaire%20migration%20boom%20forecast%20for%20UAE&amp;text=The%20country%20already%20has%2092%2C600,and%2014%20US%2Ddollar%20billionaires." target="_blank" rel="noreferrer noopener">millionaires</a> — another lure for crypto firms.



David Maria, head of regulatory affairs at Bittrex, said Dubai’s wealthy customer base is attractive to companies looking for investors or people to utilize their services. “You have a willing customer base that has money to spend and is interested in [crypto] assets, so that’s a very good starting point,” Maria said.&nbsp;



Under policies in the city, investors are also <a href="https://cms.blockworks.co/indian-crypto-companies-are-relocating-to-dubai-singapore/" target="_blank" rel="noreferrer noopener">fully exempt</a> from paying taxes on cryptocurrency profits.



But the question of how strict the UAE will be in terms of securities laws still permeates. In the US, a tug-of-war has <a href="https://cms.blockworks.co/bitcoin-ether-to-be-regulated-as-commodities-by-cftc-per-new-senate-bill/" target="_blank" rel="noreferrer noopener">broken out</a> between the Securities and Exchange Commission and the Commodity and Futures Trading Commission over who gets to regulate cryptoassets.&nbsp;



The issue is less complicated in Dubai, where VARA is the only dedicated regulator overseeing virtual assets. It <a href="https://dlp.dubai.gov.ae/Legislation%20Reference/2022/Law%20No.%20(4)%20of%202022%20Regulating%20Virtual%20Assets.html#:~:text=Virtual%20Asset%3A,value%20as%20determined%20by%20VARA." target="_blank" rel="noreferrer noopener">defines</a> virtual assets broadly — implying that cryptocurrencies, tokens and NFTs come under its ambit.



“It&#8217;s a great benefit to have a single regulator and to have explicit regulation,” Maria said, adding that the agency still has a lot more work to do in terms of guidance.



Henri Arslanian, formerly PwC’s global crypto leader, agreed that creation of a crypto-specialized regulator is a huge advantage. Arslanian recently <a href="https://www.ft.com/content/7ddc38c3-9a94-4d6f-86f0-783097a49910" target="_blank" rel="noreferrer noopener">left his role at PwC</a> to set up a Dubai-based digital assets fund called Nine Blocks Capital, which has been granted provisional approval.&nbsp;



“That matters because crypto is so unique as an asset class that you want to deal with regulators who understand it,” Arslanian said, adding that crypto companies have felt welcomed in Dubai unlike in many other locations.



No doubt, with regulatory headwinds persisting elsewhere, the crypto industry writ large is banking on those warm welcomes converting to the freedom of which they&#8217;ve sought for years, with few jurisdictions left to explore.



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Crypto Seeks Freedom in the UAE — is it a Regulatory Rug-Pull?

Ben Strack

<div id="highlights-block_62fc048890a1a" class="highlights">
 <ul>
 <li>Dubai’s crypto-friendly frameworks and young entrepreneurs makes it an exciting region to expand, 21Shares exec says</li>
 <li>Firm’s other new hires previously worked at Barclays and JPMorgan</li>
 </ul>
 
</div>



Crypto ETP issuer <a href="https://21shares.com/en-us/" target="_blank" rel="noreferrer noopener">21Shares</a> has brought aboard several executives tasked with helping the company grow in various European countries and expand to the Middle East.&nbsp;



<a href="https://www.linkedin.com/in/sherif-el-haddad-94a02647/" target="_blank" rel="noreferrer noopener">Sherif El-Haddad</a>, to be based in Dubai, will lead the firm’s expansion in the Middle East by introducing retail and institutional investors to the asset class while maintaining compliance with regional regulatory requirements.&nbsp;



Before joining Switzerland-based 21Shares, El-Haddad was head of asset management at Al Mal Capital. Prior to that, he was the managing partner of Pearl Capital Management and led the asset management division of EFG Hermes for 13 years.



Isabell Moessler, 21Shares&#8217; head of distribution for Europe, the Middle East and Africa, told Blockworks in an email that the firm is looking to provide all investors a way to buy, sell and short crypto through existing bank and brokerage accounts.



“Dubai’s supportive environment for crypto, paired with the city’s ability to attract young entrepreneurs who are passionate about new financial opportunities, is what excites us in beginning our entrance into the Middle East,” Moessler said.



<blockquote class="wp-block-quote">“Broadly, the UAE is already laying the foundation for crypto regulatory infrastructure and its overlaying ecosystems, making the region all the more appealing for crypto exchanges and companies to be a part of,” she added.</blockquote>


<div class="wp-block-image">
<figure class="alignright size-full is-resized"><img decoding="async" loading="lazy" src="https://cms.blockworks.co/wp-content/uploads/2022/08/marina-baudean-1.png" alt="" class="wp-image-27304" width="250" height="250" srcset="https://cms.blockworks.co/wp-content/uploads/2022/08/marina-baudean-1.png 300w, https://cms.blockworks.co/wp-content/uploads/2022/08/marina-baudean-1-150x150.png 150w, https://cms.blockworks.co/wp-content/uploads/2022/08/marina-baudean-1-257x257.png 257w, https://cms.blockworks.co/wp-content/uploads/2022/08/marina-baudean-1-261x261.png 261w, https://cms.blockworks.co/wp-content/uploads/2022/08/marina-baudean-1-219x219.png 219w, https://cms.blockworks.co/wp-content/uploads/2022/08/marina-baudean-1-80x80.png 80w, https://cms.blockworks.co/wp-content/uploads/2022/08/marina-baudean-1-50x50.png 50w" sizes="(max-width: 250px) 100vw, 250px" /><figcaption><a href="https://www.linkedin.com/in/marina-baud%C3%A9an/" target="_blank" rel="noreferrer noopener">Marina Baudéan</a></figcaption></figure></div>


Dubai <a href="https://cms.blockworks.co/dubai-is-the-latest-government-to-roll-out-crypto-law-set-up-regulator/" target="_blank" rel="noreferrer noopener">revealed its first cryptocurrency legislation</a> in March, and the emirate granted virtual asset licenses to <a href="https://cms.blockworks.co/ftx-granted-crypto-license-with-dubai-hq-in-sights/" target="_blank" rel="noreferrer noopener">FTX</a> and <a href="https://cms.blockworks.co/binance-granted-license-to-operate-in-dubai/" target="_blank" rel="noreferrer noopener">Binance</a> that month. Kraken also <a href="https://cms.blockworks.co/kraken-receives-abu-dhabis-first-virtual-asset-exchange-license/" target="_blank" rel="noreferrer noopener">revealed plans</a> to expand to the UAE in April, but opted for neighboring emirate Abu Dhabi.



<a href="https://cms.blockworks.co/crypto-com-secures-provisional-approval-to-open-crypto-exchange-in-dubai/" target="_blank" rel="noreferrer noopener">Crypto.com</a> and Hong Kong-based crypto custodian <a href="https://cms.blockworks.co/hex-trust-greenlit-for-virtual-asset-license-in-dubai/" target="_blank" rel="noreferrer noopener">Hex Trust</a> gained regulatory approval to conduct business in the region in June, and exchange <a href="https://cms.blockworks.co/okx-to-expand-in-uae-after-dubai-regulatory-approval/" target="_blank" rel="noreferrer noopener">OKX</a> and <a href="https://cms.blockworks.co/crypto-custodian-komainu-follows-exchanges-to-dubai/" target="_blank" rel="noreferrer noopener">Komainu</a> gained regulatory approval to operate in Dubai last month.&nbsp;



21Shares also revealed that <a href="https://www.linkedin.com/in/marina-baud%C3%A9an/" target="_blank" rel="noreferrer noopener">Marina Baudéan</a> joins the company as its head of France, Belgium and Luxembourg. She spent more than 15 years at Barclays, where she developed the bank’s cross-asset electronic trading platform, <a href="https://www.cib.barclays/markets/barx.html" target="_blank" rel="noreferrer noopener">BARX</a>, and more recently led the electronic rates distribution team in Europe, the Middle East and Africa.&nbsp;


<div class="wp-block-image">
<figure class="alignleft size-full is-resized"><img decoding="async" loading="lazy" src="https://cms.blockworks.co/wp-content/uploads/2022/08/Oliver-Schafer-1.png" alt="" class="wp-image-27305" width="250" height="250" srcset="https://cms.blockworks.co/wp-content/uploads/2022/08/Oliver-Schafer-1.png 300w, https://cms.blockworks.co/wp-content/uploads/2022/08/Oliver-Schafer-1-150x150.png 150w, https://cms.blockworks.co/wp-content/uploads/2022/08/Oliver-Schafer-1-257x257.png 257w, https://cms.blockworks.co/wp-content/uploads/2022/08/Oliver-Schafer-1-261x261.png 261w, https://cms.blockworks.co/wp-content/uploads/2022/08/Oliver-Schafer-1-219x219.png 219w, https://cms.blockworks.co/wp-content/uploads/2022/08/Oliver-Schafer-1-80x80.png 80w, https://cms.blockworks.co/wp-content/uploads/2022/08/Oliver-Schafer-1-50x50.png 50w" sizes="(max-width: 250px) 100vw, 250px" /><figcaption><a href="https://www.linkedin.com/in/oliver-sch%C3%A4fer-33235775/?originalSubdomain=de" target="_blank" rel="noreferrer noopener">Oliver Schäfer</a></figcaption></figure></div>


<a href="https://www.linkedin.com/in/oliver-sch%C3%A4fer-33235775/?originalSubdomain=de" target="_blank" rel="noreferrer noopener">Oliver Schäfer</a>, who previously worked at JPMorgan Asset Management for 15 years, according to his LinkedIn profile, will be the ETP (exchange-traded product) issuer’s head of Germany.



Schäfer replaces <a href="https://www.linkedin.com/in/marco-infuso/?originalSubdomain=ch" target="_blank" rel="noreferrer noopener">Marco Infuso</a>, who left 21Shares to lead global sales at competing firm Valour. Former 21Shares product manager Elaine Bühler and <a href="https://www.linkedin.com/in/petermaerkl/" target="_blank" rel="noreferrer noopener">Peter Märkl</a>, previously 21Shares’ head of legal, also jumped ship to Valour in recent weeks.&nbsp;



The hires and expansion plans come after 21Shares <a href="https://cms.blockworks.co/first-australian-spot-bitcoin-ether-etfs-to-go-live-next-week/" target="_blank" rel="noreferrer noopener">expanded its presence in Australia</a> in April by offering the continent’s first products to invest directly in bitcoin and ether. The firm more <a href="https://cms.blockworks.co/21shares-vying-to-build-out-crypto-winter-suite/" target="_blank" rel="noreferrer noopener">recently introduced</a> a so-called crypto winter product suite, <a href="https://cms.blockworks.co/21shares-expands-crypto-winter-product-lineup/" target="_blank" rel="noreferrer noopener">expanding it last month</a> to include risk-controlled bitcoin and ether index ETPs.



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21Shares Adds Execs as Part of Global Expansion

Bessie Liu

<div id="highlights-block_62bcbc8b6d6e0" class="highlights">
 <ul>
 <li>“A favorable tax regime, supportive legislation, access to capital and a wealth of talent makes Dubai the Web3 hotspot of the future,” a crypto exec told Blockworks</li>
 <li>“India has battled brain drain for decades,” CoinSwitch’s CEO said</li>
 </ul>
 
</div>



India’s <a href="https://cms.blockworks.co/india-clarifies-crypto-taxes-as-trading-volumes-crater/" target="_blank" rel="noreferrer noopener">daunting cryptocurrency taxation</a> policies and seemingly complex treatment of digital assets are pushing local exchanges to Dubai and Singapore.



The nation recently announced a <a href="https://cms.blockworks.co/indias-crypto-tax-takes-effect-with-industry-fearing-it-will-stifle-growth/" target="_blank" rel="noreferrer noopener">1% tax deducted at source</a> (TDS) — meaning crypto users must pay 1% tax on any transaction — on top of a controversial <a href="https://cms.blockworks.co/indias-crypto-tax-takes-effect-with-industry-fearing-it-will-stifle-growth/" target="_blank" rel="noreferrer noopener">30% tax</a> on investment profits.



India’s 30% tax law, which came into effect on April 1, triggered trade volumes at four regional crypto exchanges — WazirX, ZebPay, CoinDCK and BitBns — to immediately <a href="https://www.coindesk.com/business/2022/04/11/crypto-trading-volumes-in-india-collapse-10-days-after-new-taxes-crebaco" target="_blank" rel="noreferrer noopener">crash</a> as much as 72%.



Moves like these have led to India’s central bank being labeled “hostile” to the cryptocurrency sector. Its governor Shaktikanta Das has <a href="https://www.moneycontrol.com/news/business/rbi-governor-interview-citing-crypto-crash-shaktikanta-das-says-rbi-has-been-rightly-cautioning-investors-8559491.html" target="_blank" rel="noreferrer noopener">cautioned against cryptocurrencies</a> and claimed they hold no underlying value.&nbsp;



Nischal Shetty and Siddharth Menon, co-founders of WazirX, have now reportedly shifted operations to Dubai, although they still plan on doing business out of Mumbai.&nbsp;



The Binance Labs-backed exchange told <a href="https://www.businesstoday.in/crypto/story/exclusive-wazirx-ceo-nischal-shetty-co-founder-siddharth-menon-shift-base-to-dubai-330395-2022-04-19" target="_blank" rel="noreferrer noopener">Business Today</a> it is a remote-first organization with employees in over 70 locations. Sameer Mhatre, the third co-founder, continues to head the exchange in India.



Coinbase Ventures-backed Vauld, which recently <a href="https://cms.blockworks.co/coinbase-backed-vauld-cuts-workforce-by-30-seeks-to-halve-exec-pay/" target="_blank" rel="noreferrer noopener">cut</a> its workforce by 30%, shifted its headquarters to Singapore in 2018 alongside ZebPay. CoinDCX is also registered there under the legal name Primestack Pte. Ltd.



“India has battled brain drain for decades. This is a generational opportunity to reset the odds in our favor,” said Ashish Singhal, co-founder and CEO of Bangalore-based CoinSwitch.



CoinSwitch itself isn’t being enticed to move operations away from the country. “We want to play an active role in shaping the Web3 ecosystem in India,” he said.



<blockquote class="wp-block-quote">“Examples from the US and other matured economies show institutional investors are ready to put capital in crypto markets if there is more regulatory clarity.”</blockquote>



While the new taxation in India appears restrictive and discouraging to investors, Dubai has a <a href="https://news.bitcoin.com/dubai-launching-crypto-valley-tax-free-zone/" target="_blank" rel="noreferrer noopener">full exemption</a> on cryptocurrency taxes — similar to its <a href="https://tradingeconomics.com/united-arab-emirates/personal-income-tax-rate#:~:text=The%20Personal%20Income%20Tax%20Rate,source%3A%20Ministry%20of%20Finance" target="_blank" rel="noreferrer noopener">treatment</a> of personal income.&nbsp;



The emirate’s crypto regulator, the Virtual Assets Regulatory Authority, began handing out crypto exchange licenses in March, and two months later Dubai announced its <a href="https://dlp.dubai.gov.ae/Legislation%20Reference/2022/Law%20No.%20(4)%20of%202022%20Regulating%20Virtual%20Assets.html" target="_blank" rel="noreferrer noopener">first law</a> regulating digital assets.



“There’s a unified regulator workflow, which synthesizes the regulations and creates a beacon for the UAE to become a leader in the digital asset space,” Pranav Sharma, founding partner of Woodstock Fund, told Blockworks. “Taxation rules are also on the individual side.”



<h3>Global companies look to Dubai and Singapore</h3>



It’s not just India’s crypto exchanges making the move. A raft of global companies are now preparing to launch in Dubai, including Binance, FTX Europe, Crypto.com and Bybit — even though Dubai-based crypto exchanges can only offer a limited number of products and services to pre-qualified investors and professional finance service providers throughout the first phase of its “test, adapt, and scale” framework.



“Dubai is set to become the largest blockchain hub globally,” Domenik Maier, CEO of Dubai-based crypto market maker iBLOXX, told Blockworks. “A favorable tax regime, supportive legislation, access to capital and a wealth of talent makes Dubai the Web3 hotspot of the future.”



<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">Today, we approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the UAE’s position in this sector. The Authority will cooperate with all related entities to ensure maximum transparency and security for investors. <a href="https://t.co/LuNtuIW8FM">pic.twitter.com/LuNtuIW8FM</a>&mdash; HH Sheikh Mohammed (@HHShkMohd) <a href="https://twitter.com/HHShkMohd/status/1501566703322513408?ref_src=twsrc%5Etfw">March 9, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Singapore’s laws, too, are permissive for cryptocurrencies, where the purchase of digital assets isn’t considered taxable, and so capital gains <a href="https://cointelegraph.com/news/why-singapore-is-one-of-the-most-crypto-friendly-countries" target="_blank" rel="noreferrer noopener">aren’t taxable.</a>



Eric Barbier, founder and CEO of TripleA a company that allows businesses to pay and get paid in crypto says Singapore is “an efficient place to run a global business from.”



“I have been building companies in Singapore since the early 2000s because of its strong [intellectual property] laws, pro-business environment and international connectivity,” Barbier told Blockworks.&nbsp;



TripleA recently became one of the first crypto companies to be licensed by Singapore’s Central Bank, a process that took 18 months. Barbier believes that his company was able to receive regulatory approval as it ran by a business-to-business model, which made it “easier to enforce stringent regulatory and compliance standards.”&nbsp;



“Conducting a comprehensive verification process on a business is much easier than on a consumer or on an individual,” Barbier said.



Despite being headquartered in Singapore, Barbier says he has not completely ruled out the possibility of moving to Dubai.



“We are definitely not closing the doors to this possibility. At the moment, though, we are running a global business from Singapore and Europe,” he said. “It is imperative to have in place proper regulatory frameworks and good systems, which will ensure that we are not used as a vehicle for money laundering or terrorism financing in any way.”



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India’s Tax Regime Prompts Crypto Companies To Leave

<div id="highlights-block_62b124acabb52" class="highlights">
 <ul>
 <li>Dubai&#8217;s government is hoping to attract foreign investment following the passage of its Virtual Asset Law in February</li>
 <li>Hex Trust is the latest crypto firm to be approved, in part, for licensure within the emirate</li>
 </ul>
 
</div>



Hong Kong-based crypto custodian Hex Trust has become the latest crypto firm to receive provisional approval from the Government of Dubai to conduct business in the region.



Hex Trust said it is in the process of obtaining a Virtual Asset MVP License via the emirate&#8217;s Virtual Assets Regulatory Authority (VARA) to provide a range of services to institutional clients and investors, according to a statement Monday.



VARA, set up in March of this year, oversees virtual asset regulation via a licensing regime. The regulator is also responsible for developing strategic plans and policies relating to digital assets in the region, as well as establishing and overseeing know-your-customer checks and anti-money laundering rules.



It also became the world&#8217;s first regulator in May to establish a presence in the <a href="https://mediaoffice.ae/en/news/2022/May/03-05/Dubai-Virtual-Assets-Regulatory-Authority-becomes-world-first" target="_blank" rel="noreferrer noopener">metaverse</a> as a means of increasing accessibility to stakeholders.



With provisional approval now in hand, the custodian said it would open an office in Dubai for use as a regional headquarters in the Middle East. 



The move follows the custodian&#8217;s recent and first significant raise, an <a href="https://cms.blockworks.co/hex-trust-raises-88m-in-series-b-to-expand-into-europe-middle-east/" target="_blank" rel="noreferrer noopener">$88 million</a> Series B funding round in March, where funds were put toward scaling its operations in the Middle East and Europe.



Crypto firms continue to flock to the major Arab emirate following Dubai&#8217;s head, Sheikh Mohammed bin Rashid Al Maktoum, passing the &#8220;Regulation of Virtual Assets in the Emirate of Dubai&#8221; in February.



Better known as the Virtual Asset Law, the regulation sets about providing clear guidelines and definitions regarding digital assets, including NFTs (non-fungible tokens).



Several major crypto firms including <a href="https://cms.blockworks.co/ftx-granted-crypto-license-with-dubai-hq-in-sights/" target="_blank" rel="noreferrer noopener">FTX</a>, <a href="https://cms.blockworks.co/binance-granted-license-to-operate-in-dubai/" target="_blank" rel="noreferrer noopener">Binance</a>, <a href="https://cms.blockworks.co/crypto-com-secures-provisional-approval-to-open-crypto-exchange-in-dubai/" target="_blank" rel="noreferrer noopener">Crypto.com</a>, Bybit and <a href="https://cms.blockworks.co/kraken-receives-abu-dhabis-first-virtual-asset-exchange-license/" target="_blank" rel="noreferrer noopener">Kraken</a> have recently established regional headquarters or received licenses to operate in the United Arab Emirates.



&#8220;Hex Trust is excited and fully committed to expanding into the Middle East and sees enormous potential for digital asset growth given the progressive regulations, welcoming governments and thriving crypto ecosystem in the region,&#8221; Filippo Buzzi, Hex Trust&#8217;s regional director for the Middle East and North Africa, said in the statement.



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Hex Trust Greenlit for Virtual Asset License in Dubai

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.



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

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

David Canellis

<div id="highlights-block_629694b14c8b7" class="highlights">
 <ul>
 <li>The Monetary Authority of Singapore is partnering with JPMorgan Chase to lead a pilot program exploring DeFi&#8217;s potential</li>
 <li>Binance, Bybit and Crypto.com have all initiated moves into Dubai</li>
 </ul>
 
</div>



The central bank of Singapore is tapping JPMorgan Chase to help lead a new blockchain pilot exploring the potential of DeFi.



The upcoming tests are part of the Monetary Authority of Singapore’s (MAS) Project Guardian initiative, which launched Tuesday.



Project Guardian aims to gauge whether DeFi (decentralized finance) applications running on public blockchains, including Ethereum, can improve wholesale borrowing and lending processes without introducing additional, undue risk. The first step: tokenizing bonds and deposits, with smart contracts powering trade executions.&nbsp;



MAS also enlisted Singaporean multinational bank DBS – one of Asia’s largest financial institutions – alongside local digital asset issuance venture Marketnode to co-lead the program.



Singapore’s Deputy Prime Minister Heng Swee Keat revealed the pilot at the launch of tech event Asia Tech x Singapore Summit on Tuesday. Heng, who also serves as coordinating minister for economic policies, urged retail investors to steer clear of cryptocurrencies — despite the government’s DeFi foray.



According to <a href="https://www.straitstimes.com/tech/tech-news/retail-investors-should-steer-clear-of-cryptocurrencies-singapore-to-approach-tech-with-open-mind-dpm-heng" target="_blank" rel="noreferrer noopener">The Straits Times</a>, Heng said Singapore must “pierce through both the hubris and the veil of suspicion” surrounding digital assets to fully grasp the “potentially transformative underlying technologies.” In other words: “blockchain, not bitcoin.”



The project intends to focus on digital securities, or blockchain-powered tokens backed by traditional financial instruments. Singapore’s central bank, which doubles as the nation’s regulatory authority on finance, will leverage the pilot’s results to inform its crypto policymaking.



<h3>Crypto bigwigs already left Singapore for Dubai</h3>



While initial indications are that MAS is open to using public (permissionless) blockchains throughout Project Guardian, the tokenized bonds and deposits will be deployed to a private (permissioned) liquidity pool for the purposes of the pilot. There’s potential for digital securities trade on local regulated online exchanges at some point down the line.



Project Guardian diverges from a similar – already live – DeFi initiative managed directly by JPMorgan.&nbsp;



MAS wants to explore permissionless systems; JPMorgan’s Onyx Digital Assets platform is powered by a private blockchain that facilitates the tokenization and trading of US Treasurys within intraday repurchase, or repo, markets — which are employed by hedge funds and other asset managers looking to borrow money at reasonable rates to fund big-ticket orders.&nbsp;



Blockworks <a href="https://cms.blockworks.co/french-banking-giant-bnp-paribas-joins-jpmorgans-onyx-blockchain/" target="_blank" rel="noreferrer noopener">reported</a> last week that French bank BNP Paribas had joined Onyx, which has so far processed more than $300 billion of digital tokens representing US Treasurys since its December 2020 launch.



In any case, it’s not clear whether the potential for regulatory clarity via Project Guardian will be enough to entice a selection of crypto’s biggest names back to Singapore.&nbsp;



Increased regulatory scrutiny and long wait times for crypto exchanges applying for licenses had clouded hopes for Singapore to become a global hub for digital assets, with the localized arm of the global exchange Binance <a href="https://www.forbes.com/sites/robertolsen/2021/12/13/crypto-giant-binance-shuts-down-singapore-trading-platform/?sh=7351e75f682f" target="_blank" rel="noreferrer noopener">shutting down</a> last December.&nbsp;



Binance’s Singapore affiliate supported the trading of just eight cryptocurrencies at the time, a fraction of the 100 digital assets on Binance’s US platform, plus 600-odd tokens on its flagship exchange.



By March, Binance <a href="https://cms.blockworks.co/binance-granted-license-to-operate-in-dubai/" target="_blank" rel="noreferrer noopener">secured</a> regulatory approval to begin operating in Dubai and quickly began looking to hire 100 new staffers in the region. Founder and CEO Changpeng Zhao <a href="https://www.bloomberg.com/news/articles/2021-11-19/binance-chief-zhao-buys-his-first-home-in-pro-crypto-dubai" target="_blank" rel="noreferrer noopener">bought</a> property in Dubai in the months prior.



Crypto derivatives platform Bybit relocated its headquarters from Singapore to Dubai in April. Singapore-based exchange Crypto.com likewise recently <a href="https://www.reuters.com/business/finance/uae-crypto-push-sees-bybit-cryptocom-announce-dubai-offices-2022-03-28/" target="_blank" rel="noreferrer noopener">signaled</a> the company plans to open its first Dubai outpost.



Longtime crypto hedge fund firm Three Arrows Capital in April also pledged to move its headquarters from Singapore to Dubai. Co-founder Su Zhu <a href="https://www.coindesk.com/business/2022/04/28/three-arrows-capital-to-move-headquarters-to-dubai-raise-external-capital/" target="_blank" rel="noreferrer noopener">cited</a> “electric energy” in Dubai’s digital asset industry at the time.



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Singapore Central Bank Ready To Try DeFi After Crypto Giants Leave for Dubai

Casey Wagner

<div id="highlights-block_62717216df8e7" class="highlights">
 <ul>
 <li>VARA did not provide details about when MetaHQ will be accessible to users or information about the cost of the digital land</li>
 <li>The US is also expanding its crypto regulatory presence by adding 20 positions to its SEC watchog unit</li>
 </ul>
 
</div>



Dubai’s cryptocurrency regulator has become the first such national watchdog to acquire land in the metaverse with plans to establish a virtual headquarters.



Dubai’s Virtual Assets Regulatory Authority (VARA) will create its “MetaHQ” using The Sandbox metaverse platform, according to a Tuesday <a href="https://www.wam.ae/en/details/1395303044162" target="_blank" rel="noreferrer noopener">statement</a> from VARA to the WAM news agency.&nbsp;



MetaHQ plans to provide digital users access to regulatory resources within the virtual environment, something that will become increasingly important as digital presence increases, the statement said.&nbsp;



&#8220;By expanding VARA’s resources to a borderless audience through the Metaverse, Dubai is creating a prototype Decentralised Regulator Model, inviting international thought leaders &#8211; global authorities, governance custodians, and industry shapers &#8211; to participate, exchange knowledge, and problem-solve collectively so that we enable the dynamic virtual assets sector to build economic resilience, accelerate social inclusion, and address environmental sustainability,” Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum said in the statement.&nbsp;



The development comes as the United States likewise moves to increase regulatory oversight of digital assets — albeit in the physical world.



The SEC <a href="https://www.sec.gov/news/press-release/2022-78" target="_blank" rel="noreferrer noopener">announced Tuesday</a> that it will be adding 20 members to the unit responsible for protecting investors in crypto markets and from cyber-related threats.&nbsp;



The newly renamed Crypto Assets and Cyber Unit, formerly known as the Cyber Unit, will now have 50 team members, including the new hires, the SEC said.&nbsp;



&#8220;The U.S. has the greatest capital markets because investors have faith in them, and as more investors access the crypto markets, it is increasingly important to dedicate more resources to protecting them,&#8221; SEC Chair Gary Gensler said in a statement.&nbsp;



The new SEC positions will focus on regulating cryptocurrency exchanges, lending and staking, non-fungible tokens (NFTs) and more.



VARA did not provide details about when MetaHQ will be accessible to users or information about the cost of the digital land.



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Dubai’s Crypto Regulator Buys Land in the Metaverse for Headquarters

<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.



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Kraken Receives Abu Dhabi’s First Virtual Asset Exchange License

Michael Bodley

<div id="highlights-block_623e22cfd78c2" class="highlights">
 <ul>
 <li>LibertyEx is in the process of raising a $10 million Series A round. Follow-up round could take the form of a token sale</li>
 <li>The exchange will support both institutional and retail offerings in digital assets, plus alternative and traditional asset classes</li>
 </ul>
 
</div>



A new cryptocurrency exchange that facilitates the trading of digital assets, NFTs and traditional securities is primed to launch, according to sources familiar with the matter.&nbsp;



LibertyEx has in recent weeks started offering over-the-counter crypto trades, the sources said. A broader launch is set for April.&nbsp;



Leading the effort, according to marketing materials obtained by Blockworks, is CEO James Row of Houston-based boutique investment bank Entoro Capital, which has a healthy crypto book.&nbsp;



Row is in the process of raising a $10 million Series A round for LibertyEx. That’s expected to be followed by a $100 million follow-up round, which could take the form of a token sale. 



The startup exchange is now in the process of obtaining regulatory approval from jurisdictions including the Bahamas, <a href="https://cms.blockworks.co/el-salvador-pushes-volcano-bond-issue-unveils-state-owned-company-backing/" target="_blank" rel="noreferrer noopener">El Salvador</a>, Switzerland and the <a href="https://cms.blockworks.co/abu-dhabi-ramps-up-effort-to-become-middle-easts-crypto-hub/" target="_blank" rel="noreferrer noopener">United Arab Emirates</a>. It plans to offer about 40 spot trading products at launch, with 20 or so additional new trading pairs set to be introduced each month. 



Derivative digital asset trades, which are still in development, are likely set to include perpetuals, futures, options, leveraged tokens and volatility plays. It plans to additionally offer its own NFT (non-fungible token) marketplace, which would support both regulated securities and assets.&nbsp;



Part of the plan includes a so-called “white glove,” turnkey service for institutional investors, who will be able to engage in crypto trading, staking and yield plays and derivatives. The business line would offer advisory services, as well as crypto wealth management.&nbsp;



A market-making business is also in the works — as are integrations with popular third-party DeFi and Web3 platforms.&nbsp;



There’s also pending access to private crypto funds for accredited limited-partners, plus placement-agent and marketing services for digital-asset managers.&nbsp;



The broad idea is to capture multiple alternative and crypto asset classes in a regulatory-approved and know-your-customer-compliant manner — with support for both institutional and retail clients.&nbsp;



LibertyEx has inked a number of crypto service providers as partners, including custodian Fireblocks.



LibertyEx, according to the marketing materials, has pegged its total addressable market at $31.05 trillion, including $1.9 trillion of crypto assets, with the remainder stemming from traditional and alternative asset classes.&nbsp;



The exchange estimates there were 300 million more digital-currency users worldwide last year, along with more than $64 billion of institutional dollars flowing into the space. Venture capitalists, meanwhile, <a href="https://cms.blockworks.co/2021-crypto-vc-funding-tops-30b-market-is-superheated/" target="_blank" rel="noreferrer noopener">plowed nearly $30 billion</a> into digital-asset startups in 2021, up from $6.5 billion the year before, according to the marketing materials. 



The startup also plans to offer banking on-ramp strategies, plus crypto mining services.&nbsp;



At least 14 employees are set to be on board at launch. Among them, in addition to Row: Chief Financial Officer Elias Bahaia Siman, CEO of an El Salvador textiles company; Chief Risk Officer Michael Miller, a former hedge fund professional who has spent time at Oaktree Capital; Chief Operating Officer Paul Mottola, a managing director at Entor0; and Chief Technology Officer Adam Richard, Entoro’s head of crypto.

Startup Exchange Sees Trillion Dollar Opportunity in Combining Digital and Traditional Assets

<div id="highlights-block_623202b2af123" class="highlights">
 <ul>
 <li>Dubai revealed its first cryptocurrency legislation proposal last week</li>
 <li>Competing exchange FTX was also recently granted a license to operate in the region</li>
 </ul>
 
</div>



Binance was granted a virtual asset license by Dubai’s regulator as the crypto exchange seeks to expand further in the United Arab Emirates (UAE).&nbsp;



Under the Virtual Asset Regulatory Authority (VARA), Binance will be allowed to offer limited exchange products and services to pre-qualified investors and professional financial service providers, the company announced Wednesday.



VARA will monitor its licensed service providers to determine if they may open to the retail market.



Changpeng Zhao, founder and CEO of Binance, called Dubai a “progressive regime” targeting uncompromised governance and market security.



“The collaborative way in which Binance has been engaged to bring proven industry compliance-leading experience to the Dubai ecosystem is indicative of the unique operating model that the VARA is creating for the global industry,&#8221; he said in a statement.



The company is hiring engineers, as well as roles in sales, compliance, human relations and talent acquisition in the UAE, job postings on Binance’s website indicate.



A Binance spokesperson did not immediately return a request for comment.&nbsp;



Binance’s move into Dubai comes after the emirate last week <a href="https://cms.blockworks.co/dubai-is-the-latest-government-to-roll-out-crypto-law-set-up-regulator/" target="_blank" rel="noreferrer noopener">revealed its first cryptocurrency legislation</a>, overseen by a new regulatory agency. The 56-page <a href="https://dfsaen.thomsonreuters.com/sites/default/files/net_file_store/CP143_Regulation_of_Crypto_Tokens.pdf" target="_blank" rel="noreferrer noopener">proposal</a>, released by the Dubai Financial Services Authority (DFSA), focuses on “crypto tokens,” but excludes non-fungible tokens (NFTs), central bank digital currencies (CBDCs) and utility tokens.



&#8220;The new VARA is symbolic of Dubai&#8217;s confidence in the potential of this future economy driver — if introduced with prudence and legitimacy,” Helal Saeed Almarri, director general of Dubai World Trade Centre Authority, said in a statement. “To this end, our regime is structured to catalyze collaboration, foster innovation and most critically secure public interest.”



Crypto exchange FTX <a href="https://cms.blockworks.co/ftx-granted-crypto-license-with-dubai-hq-in-sights/" target="_blank" rel="noreferrer noopener">was granted a license</a> to operate within the emirate, Bloomberg reported Monday, and the company will now seek to establish a regional headquarters in the city of Dubai.



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Binance Granted License To Operate in Dubai

<div id="highlights-block_622ffd7b3d87c" class="highlights">
 <ul>
 <li>FTX has been granted approval to operate crypto derivatives products to large clients within the emirate of Dubai</li>
 <li>The exchange provider is also looking to set up a headquarters within the emirate&#8217;s capital city of Dubai</li>
 </ul>
 
</div>



Major cryptocurrency exchange FTX has been granted a license to operate within the United Arab Emirates (UAE) and will now seek to establish a regional headquarters within the city of Dubai.



FTX is now clear to begin offering crypto derivative products to institutional clients in the city, leveraging a progressive virtual asset licensing regime overseen by the Dubai Virtual Assets Regulatory Authority.



Bloomberg first <a href="https://www.bloomberg.com/news/articles/2022-03-14/crypto-exchange-ftx-wins-license-and-plans-regional-hq-in-dubai#:~:text=Crypto%20Exchange%20FTX%20Wins%20License%2C%20Plans%20Regional%20HQ%20in%20Dubai,-By&amp;text=FTX%2C%20a%20major%20cryptocurrency%20exchange,the%20Dubai%20World%20Trade%20Centre." target="_blank" rel="noreferrer noopener">reported</a> the news Monday. In a statement published by the news outlet, FTX CEO Sam Bankman-Fried said his company would offer “complex crypto-derivatives products&#8221; with &#8220;centralized counterparty clearing to institutional markets.&#8221;



It&#8217;s another major win for the exchange provider which is attempting to broaden its services outside the US. Last week, FTX consolidated its European operations under its <a href="https://cms.blockworks.co/ftx-europe-launches-in-switzerland-emphasizing-regulatory-compliance/" target="_blank" rel="noreferrer noopener">FTX Europe</a> umbrella to serve clients on the continent and across the Middle East.



At the same time, the emirate of Dubai, which is one of seven others 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> — the Dubai Virtual Asset Regulation Law — and established a watchdog to monitor the budding sector.



That law seeks to establish crypto governance throughout the emirate and its free zones with the exception of the Dubai International Financial Center, which is overseen by another regulator, the Dubai Financial Services Authority.



Previously, obtaining a license for crypto services in Dubai required filing an application to the government entity Dubai Multi Commodities Centre (DMCC). Established in 2002, the DMCC is a free zone aiming to boost commodity trade flows into the city.



Certain <a href="https://prifinance.com/en/cryptocurrency-license/uae/" target="_blank" rel="noreferrer noopener">benefits</a> for setting up shop within the DMCC include zero corporate income tax for the first 50 years, no limits on the transfer of income of a company and no limits on foreign employment. It is unclear where the proposed headquarters will be established in the city. FTX did not immediately respond to a request for comment.



Rival exchange Binance, the world&#8217;s largest crypto platform by trading volume, has also been pushing to establish a foothold in the Middle East and has reportedly been <a href="https://www.bloomberg.com/news/articles/2022-03-14/binance-wins-exchange-s-first-gulf-crypto-license-from-bahrain" target="_blank" rel="noreferrer noopener">green-lit</a> to begin offering its products under the newly established law.



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FTX Granted Crypto License With Dubai HQ in Sights

<div id="highlights-block_6228de67b8c9b" class="highlights">
 <ul>
 <li>Dubai Financial Services Authority reveals report on crypto token regulation</li>
 <li>Proposal calls for “privacy tokens” and “algorithmic tokens” to be banned</li>
 </ul>
 
</div>



Dubai has revealed its first cryptocurrency legislation, overseen by a new regulatory agency.



“The future belongs to whoever designs it,” Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum wrote in a tweet Wednesday, translated to English. “Today, through the virtual assets law, we seek to participate in the design of this new and rapidly growing global sector. Our step is a leap towards the future aimed at developing this sector and protecting all investors in it.” 



The 56-page <a href="https://dfsaen.thomsonreuters.com/sites/default/files/net_file_store/CP143_Regulation_of_Crypto_Tokens.pdf" target="_blank" rel="noreferrer noopener">proposal</a>, released by the Dubai Financial Services Authority (DFSA) Wednesday, focuses on crypto tokens and follows an October report on digital tokens.



The proposed law focuses on “crypto tokens,” which does not include <a href="https://cms.blockworks.co/the-investors-guide-to-nfts/" target="_blank" rel="noreferrer noopener">non-fungible tokens</a> (NFTs), central bank digital currencies (CBDCs) and utility tokens, including play-to-earn gaming tokens with “non-financial” uses.



“We are proposing to exclude NFTs from the scope of our current proposals on the basis there is no Financial Service being provided,” the report said. “However, this comes with a strong caveat that this exemption will depend on the characteristics of the NFT and its function, and not what terminology or marketing terms are used.”



The Dubai Virtual Asset Regulation Law calls for the ban of “privacy tokens,” designed to obscure token holders and trading patterns, and “algorithmic tokens,” which interfere with supply and demand to control price.



The proposal is currently in the public consultation and amendment phase. The next step is to submit it to higher government authorities for approval.



The final version of the law will be made public once it is complete.



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Dubai Is the Latest Government To Roll Out Crypto Law, Set Up Regulator

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 decoding="async" loading="lazy" width="300" height="200" src="https://cms.blockworks.co/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-300x200.jpeg" alt="" class="wp-image-13254" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-300x200.jpeg 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-1024x683.jpeg 1024w, https://cms.blockworks.co/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-768x512.jpeg 768w, https://cms.blockworks.co/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-386x257.jpeg 386w, https://cms.blockworks.co/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-392x261.jpeg 392w, https://cms.blockworks.co/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-329x219.jpeg 329w, https://cms.blockworks.co/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1-80x53.jpeg 80w, https://cms.blockworks.co/wp-content/uploads/2021/12/Shorafa-Al-Hammadi-1.jpeg 1200w" sizes="(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">“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"/>



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