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Ripple’s Resilience Shines As Sologenic Reports Surge Institutional Interest in Dubai

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In a testament to Ripple’s steadfast appeal, Sologenic, a platform anchored on the XRP Ledger, underscores a steady influx of institutional investors into Dubai. Despite an ongoing legal tussle with the SEC, Ripple remains undeterred in its global expansion, setting its sights on the lucrative markets of Dubai and the broader Middle East and North Africa (MENA) region.

In a strategic move earlier this year, Ripple bolstered its presence in Dubai by inaugurating a cutting-edge office space at the Dubai International Financial Centre (DIFC). At the Dubai Fintech Summit, Brad Garlinghouse revealed that the XRP Ledger (XRPL) now boasts a staggering 4.8 million wallets, with a notable 20% emanating from the MENA region. This surge signifies a palpable appetite for Ripple-based solutions in this dynamic market.

Ripple’s Global Outreach And MENA Market Dominance

A pivotal statistic reveals that over 90% of Ripple’s operational endeavors are conducted beyond the borders of the United States, underscoring the company’s global reach. The MENA region, a pivotal arena for Ripple, houses some of its esteemed clientele, including financial powerhouses like SABB, Qatar National Bank, Lulu Financial Holdings, Al-Ansari Exchange, and RAK Bank.

Sologenic, an indigenous UAE entity, rejoices in aligning with XRP mission to entice institutional investors, having triumphantly ushered over 200,000 customers onto the XRP Ledger. The growing acceptance of XRP payments mirrors the burgeoning wave of cryptocurrency adoption. Bitpay, a trailblazing cryptocurrency payment processor, recently lauded two enterprises for embracing XRP via its platform.

In an epoch-making development, ExpressVPN, the esteemed VPN service provided by the British Virgin Islands-registered enterprise Express Technology, now warmly welcomes XRP payments through BitPay, as heralded by the crypto payments juggernaut. Additionally, the digital games marketplace, Kinguin, has enthusiastically integrated XRP payments through BitPay, empowering gamers to navigate their virtual realms with the seamless efficiency of XRP.

As Ripple’s influence burgeons, the Dubai and MENA markets stand poised to play pivotal roles in the company’s trajectory, affirming the undying allure of this groundbreaking cryptocurrency platform.

Related Reading: | Bitcoin Leads Fidelity’s List as the Safest and Most Decentralized Cryptocurrency

Komainu Crypto Custody Evolution: Secures Full Operating License From Dubai’s VARA

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In a significant milestone for the crypto industry, Komainu, a renowned digital asset custody service provider tailored to institutional clients, announced today that it had been granted a fully-fledged operating license by Dubai’s Virtual Asset Regulatory Authority (VARA). This significant achievement comes after the firm secured its Minimum Viable Product (MVP) license in November of the previous year.

Notable players in the crypto exchange domain, such as Binance, Bybit, Laser Digital Middle East, BitOasis (currently suspended), OKX, Crypto.com, FTX (license revoked), and Huobi, have previously attained similar operational status under VARA.

Komainu’s Commitment to Institutional Crypto Services

In a strategic move to expand its offerings, Komainu unveiled a key partnership last month with Figment, a leading staking infrastructure provider. This collaboration enables institutional investors, including asset managers, family offices, hedge funds, and pension funds, to reap protocol staking rewards primarily on the Solana and Polkadot networks. 

Meanwhile, their digital assets will remain securely held within Komainu’s custody solution. Notably, Komainu clients will continue to maintain control over their staked assets even while in custody, thanks to Figment’s provision of a non-custodial staking service.

Komainu’s newly acquired full operating license from VARA is a pivotal achievement that grants the company the authority to offer its comprehensive array of custody services. These services encompass institutional staking and collateral management through the Komainu Connect platform, thereby allowing the company to cater to clients based in the Emirate.

Situated in Dubai, Komainu MEA FZE, the company’s local presence, underscores its commitment to building a robust organizational presence to fulfill its objectives in the region. Speaking about the strategic move, Sebastian Widmann, Komainu’s Head of Strategy, highlighted the immense prospects for business growth in Dubai’s thriving digital asset ecosystem. 

Widmann emphasized:

Dubai has a vibrant digital asset ecosystem and impressive talent pool, and we are proud to contribute to the growth of this innovative financial hub. Our presence and desirable regulatory status in the region marks another differentiator for us as we execute the next phase of our business.”

Komainu’s latest achievement represents a significant step forward in the institution’s journey to becoming a prominent player in the crypto custody and institutional services arena, as it aligns with Dubai’s broader vision for the digital asset industry’s growth and development.

Related Reading | Crypto Market Sentiment Dips: $55M Outflows Amid SEC ETF Uncertainty

Binance’s Dubai Subsidiary Becomes First To Gain Operational MVP License

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Strengthening its foothold, Binance announced its Dubai subsidiary, Binance FZE, became the first crypto exchange in the world to secure an Operational MVP License from Dubai’s Virtual Assets Regulatory Authority [VARA], initially for institutional and qualified retail investors.

The issuance of the operational MVP license, which is seen as a significant accomplishment, follows Binance’s successful acquisition of a provisional MVP license in March 2022 and a preliminary MVP license in September 2022.

Users registered with the exchange’s local wing would be now able to access regulated virtual asset services in Dubai under VARA’s investor protection and market assurance criteria after receiving an Operational Minimum Viable Product [MVP] authorization.

This involves two licensed operations: virtual asset broker-dealer services and virtual asset exchange services, which are only available to accredited clients and qualified institutional investors in the city-state, as stated in the announcement post.

Institutions and residents that qualify to use the services provided by the Operational MVP License in Dubai can do so knowing they’re under investor protection and market assurance standards tailored specifically for the virtual asset sector, and required by VARA for any licensees to provide regulated virtual asset services in Dubai.

The news comes amid a challenging period for the global cryptocurrency sector, particularly for digital asset service providers like Binance, which are being closely scrutinized by numerous international regulatory bodies across the world.

Binance Refuse To Bow Before CFTC

Last week, the CZ-led trading platform indicated its readiness to take on market regulators. As reported by TronWeekly, the leading crypto exchange planned to file a petition seeking a dismissal of the CFTC lawsuit against it.

The exchange and its CEO, Changpeng Zhao [CZ], were charged by the Commodity Futures Trading Commission with operating illegally, not properly registering the exchange, and willfully breaking American laws.

Refusing to back down, multiple Binance entities, Zhao, and former Chief Compliance Officer Samuel Lim considered submitting two separate petitions to file the complaint before July 27, according to a recent filing to an Illinois District Court.

“The Foreign Binance Entities and Zhao intend to file a joint Motion to Dismiss the Complaint. Lim intends to file a separate Motion to Dismiss the Complaint and join parts of the motion filed by the Foreign Binance Entities and Zhao,” the filing read then.

BitOasis License Suspended: Dubai Crypto Regulator Takes Action

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VARA, the Virtual Assets Regulatory Authority in Dubai, has taken decisive action against cryptocurrency exchange BitOasis, ⁠ suspending its license for falling short of the mandated conditions within the specified timeframes. In two market alerts issued on July 10, VARA announced its ⁠ legal actions and the continuous examination of the Dubai-based firm. ‌

The first notice revealed that VARA started enforcement ⁠ measures and ongoing supervisory controls towards BitOasis. The regulatory body expressed concern about the exchange’s inability to meet the prescribed conditions that must be fulfilled within ⁠ 30-60 days following issuing its License for Institutional and Qualified Retail Investors on April 12th, 2023. ‍

Under the provisions of the Virtual Assets and Related Activities Regulations 2023, VARA is empowered to oversee ⁠ conformity, ensure the fulfillment of prescribed conditions, impose remedial measures, and commence essential enforcement proceedings. Consequently, the exchange’s license status has ⁠ been assigned as inactive. ​

BitOasis’ License Status Designated As Non-Operational

The second notice reiterated VARA’s enforcement ⁠ actions against the exchange. The market alert clarified that the conditional MVP License, granted to BitOasis on April 12, 2023, had been suspended ⁠ due to the inability of the exchange to fulfill the essential requirements within the designated 30-60 day periods. ​

As a result, the license for institutional and qualified retail investors remains inactive until the ⁠ required conditions are met, allowing BitOasis to seek the Full Market Product License (FMP). ‌

VARA emphasized its commitment to monitoring the situation closely, ensuring regulatory compliance, ⁠ and overseeing the fulfillment of necessary actions imposed on BitOasis. The cryptocurrency exchange must address the specified requirements expeditiously to ⁠ restore its operational condition and continue its market operations. ​

Investors and customers of BitOasis have been advised to take note of VARA’s ⁠ market alerts and stay cautious throughout this time of regulatory examination. The suspension of BitOasis’ license serves as a reminder of the importance of adhering to regulatory guidelines ⁠ and meeting the prescribed conditions to uphold a thriving and compliant cryptocurrency system in Dubai. ​

However, VARA’s proactive actions against BitOasis emphasize its pledge to uphold ⁠ transparency, accountability, and consumer protection within the virtual assets industry. The regulatory body aims to foster a secure and regulated environment for investors and market participants, ⁠ ensuring long-lasting viability and progress of the virtual currency domain within Dubai. ​

Related Reading | Standard Chartered Bank Revises Bitcoin Price Prediction, Forecasts $50,000 By Year-End And $120,000 Next Year

Dubai’s Regulatory Framework Is Top Notch, But Adoption Rate Lags

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Dubai has established itself as one of the preferred destinations for crypto juggernauts, along with its sister center Abu Dhabi. This is evident by the arrival of Binance, Coinbase, Crypto.com, and a host of other leading crypto firms that have gravitated toward the region.

Not long ago, Binance CEO CZ praised the city’s global appeal and business-friendly atmosphere, both of which have aided in the exchange’s quick expansion. It has increased its workforce from a few employees to over 700 in Dubai alone in just one and a half years.

The most recent is OKX, which is also attempting to expand its local team in Dubai to 30 individuals. The region, in contrast to other nations, has a distinct license for crypto assets in addition to more conventional assets like stocks, futures, and bonds, says the firm, rather than treating cryptocurrencies like commodities or securities.

All these might have contributed to the region being counted among the top echelons of global financial centers, of the likes of New York, London, and Hong Kong.

In the latest survey undertaken by CoinDesk, Dubai and Abu Dhabi cemented top positions in the regulatory structure, the most heavily weighted criterion at 35% of the total score.

According to Al Kalooti, executive director of Binance MENA, Dubai, the USP of the United Arab Emirates is that “it offers a home for all those types of use cases.”

Dubai Targets 1000 Blockchain Firms By 2030

In fact, immediately after founding VARA, the government released its Metaverse Strategy, outlining its goal to construct “one of the world’s top 10 metaverse economies as well as a global hub for the metaverse community.”

By 2030, the nation hopes to draw 1,000 blockchains and metaverse businesses and create 40,000 virtual employment.

That said, its geographical proximity to Northern Africa, Asia, and Europe, Dubai helps foster global networking and collaboration.

The region, however, fared poorly on the crypto adoption score [measuring 10%] despite its growth opportunities. These indicated that the country’s general populace is less knowledgeable about the technology compared to its residents.

It remains to be seen whether Dubai can overcome its low crypto adoption rate and fully harness the potential of cryptocurrency innovation.

 

Dubai’s CetoEX Welcomes BabyDoge Coin To Their Exchange, Fueling Meme Coin Frenzy

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Dubai-based cryptocurrency exchange CetoEX made an exciting announcement, stating that they will be listing BabyDoge Coin (BABYDOGE) on their platform. This news comes as a significant development for the meme-inspired cryptocurrency, which has been gaining notable attention in the crypto space. 

The tweet from CetoEX, posted on June 20, expressed excitement over the listing and encouraged users to prepare for trading on their platform with the BABYDOGE/USDT trading pair.

Prior to the listing on CetoEX, Canadian DigitalAssets Exchange, Biconomy, had also made a noteworthy announcement regarding BabyDoge Coin. 

Biconomy revealed that they now support the BABYDOGE ERC20 token, enabling users to deposit and withdraw the cryptocurrency on their platform. It further adds to the growing popularity and acceptance of BabyDoge Coin within the crypto community.

BabyDoge Coin Shifts Focus With BabyDogeSwap DEX

BabyDoge Coin, often regarded as a competitor to Shiba Inu, has recently taken a significant step towards establishing itself as more than just a fun meme token. 

The cryptocurrency has introduced its own decentralized exchange (DEX) platform called BabyDogeSwap, signaling a shift in focus toward providing utility for its users. 

This move is expected to open up a wide range of services for participants, including token swapping, creating farms and pools, utilizing the DEX’s free token locker, and exploring the collection of non-fungible tokens (NFTs) available on the platform.

While the launch of BabyDogeSwap is indeed a remarkable milestone, it inevitably draws comparisons to Shiba Inu’s ShibaSwap exchange, which has already cemented its position as one of the most widely used decentralized trading platforms in the realm of decentralized finance (DeFi). 

The performance of BabyDogeSwap will be closely monitored to gauge its ability to compete with the established rival. On June 18, an official announcement declared that BabyDogeSwap.com was live and operational. 

Users can now take advantage of the platform’s token aggregator for swapping, create farms and pools as needed, utilize the free token locker, explore available NFTs, obtain a virtual crypto card specifically for BabyDoge, leverage the burn portal to reduce buy fees, purchase cryptocurrencies using fiat through on-ramp services, and even track the charitable impact of BabyDoge.

However, the listing on CetoEX and the launch of BabyDogeSwap mark significant milestones for BabyDoge Coin, showcasing its potential for growth and utility within the crypto ecosystem.

It remains to be seen how BabyDogeSwap will fare against its established rival, ShibaSwap, in the rapidly evolving landscape of decentralized exchanges.

Related Reading | Shiba Inu’s Stellar Rise Leaves Ethereum Behind, Catches Attention of US Politician

OKX Middle East Gains MVP Preparatory License from Dubai’s VARA, Eyes UAE Expansion

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In a significant move that solidifies its presence in the Middle East, OKX, the second-largest crypto exchange, announced today that its subsidiary, OKX Middle East Fintech FZE, has been granted a Minimal Viable Product (MVP) Preparatory license by the Dubai Virtual Assets Regulatory Authority (VARA).

With the UAE being a pivotal growth and business hub for OKX globally and regionally, the exchange is gearing up to expand its operations through OKX Middle East. 

As part of this expansion plan, the company has established a new office in the prestigious Dubai World Trade Center and aims to hire 30 local professionals, emphasizing senior management positions and local talent. 

Furthermore, the company intends to introduce its popular brand partnerships, which include collaborations with renowned entities such as Manchester City Football Club, McLaren Racing, and the Tribeca Festival, to the UAE market through engaging customer-centric initiatives.

The MVP preparatory license enables approved licensees to fulfill all prerequisites necessary for conducting MVP operations within the VARA framework. 

Once operational, the company will offer a wide range of duly regulated virtual asset activities, providing spot, derivatives, and fiat services, including deposits, withdrawals, and spot-pairs in USD and AED, to institutional and qualified retail customers.

OKX Leadership Expresses Excitement & Confidence

Expressing excitement over the MVP preparatory license, Lennix Lai, OKX Global Chief Commercial Officer, praised VARA for creating an environment where virtual asset service providers (VASPs) can flourish. 

Lai highlighted the company’s commitment to local talent acquisition and identified the MENA region as a potential center of excellence for Web3 and virtual assets.

Tim Byun, OKX Global Head of Government Relations, applauded Dubai and VARA for their exemplary regulatory framework, asserting that compliance with the comprehensive VARA guidelines is a crucial aspect of its global strategy. 

Byun emphasized the significance of strong regulation in an uncertain market, ensuring security, transparency, and consumer protection for VASPs. Such a regulatory framework enables industry growth and increased participation in the crypto and Web3 sector.

Haider Rafique, OKX Chief Marketing Officer, expressed the company’s eagerness to enter the UAE market, highlighting the company’s measured and transparent approach. 

Rafique drew attention to the company’s commitment to publishing monthly proof of reserves, distinguishing the exchange as the only global player to do so consistently. 

Additionally, Rafique mentioned its focus on innovation in the Web3 space, emphasizing its leading decentralized ecosystem and the introduction of new security features.

With OKX’s MVP preparatory license in hand, the company is poised to contribute to the expanding crypto and Web3 ecosystem in the MENA region. 

However, as Dubai and VARA lead the way in establishing a robust regulatory framework, OKX aims to leverage the UAE’s potential and reinforce its position as a trusted and compliant player in the digital asset industry.

Related Reading | Strange Ethereum Whale With Holdings Worth $738M Resurfaces In Market

Binance CEO Unveils Dubai’s Crypto Rise & Lightning Network Ambitions

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Binance CEO Changpeng Zhao, commonly known as CZ, recently participated in an hour-long Twitter Spaces session where he addressed various topics and provided insights into the exchange’s operations and future plans.

Among the highlights of the session was CZ’s discussion on Dubai’s emergence as a global hub for crypto innovation and the exchange’s growing presence in the city.

CZ expressed his enthusiasm for Dubai, noting the significant growth in the number of crypto companies and the vibrant crypto events taking place there. 

He emphasized the city’s international appeal and its business-friendly environment, which has contributed to Binance’s rapid expansion. In just a year and a half, the exchange has gone from a few employees to over 700 in Dubai alone. CZ confidently stated that Dubai is already a crypto innovation hub and will continue to thrive.

During the session, CZ also advised caution to crypto newcomers when seeking advice from social media platforms. He stressed the importance of conducting thorough research and considering individual circumstances before making investment decisions.

CZ urged newcomers not to blindly follow advice from famous individuals on the internet, as personal factors and risk management play a crucial role in determining investment strategies.

Binance’s Non-Involvement In Mining

Regarding Binance’s involvement in the mining sector, CZ clarified that Binance does not engage in mining activities itself. However, the exchange operates one of the largest mining pools, offering miners access to low fees and utilizing Binance’s liquidity to cover operational costs. 

While mining is acknowledged as an important aspect of the industry, CZ stated that it is not the exchange’s core expertise, citing the complexities associated with hardware and other factors.

One topic of interest was Binance’s potential support for the Lightning Network, a layer-two scaling solution for Bitcoin. CZ explained that implementing the Lightning Network is not a simple process and requires careful security considerations. 

The Binance team is currently exploring solutions and may enable Lightning Network transactions for small amounts initially. CZ expressed the belief that every exchange will eventually need to support the Lightning Network due to its cost-saving benefits and faster transaction speeds.

However, CZ’s Twitter Spaces session provided valuable insights into the exchange’s growth, its stance on mining, and its plans for implementing the Lightning Network. 

As Binance continues to expand its presence in Dubai and explore innovative solutions, the crypto community eagerly awaits further developments from the leading exchange.

Related Reading | Coinbase Launches Institutional Bitcoin & Ether Futures On Derivatives Exchange

Ripple To Expand Footprint In Dubai With New Office & Swell Global Conference

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Ripple, a prominent provider of cryptocurrency and enterprise blockchain solutions, is set to broaden its footprint in Dubai by establishing a new office at the Dubai International Financial Centre (DIFC). 

Ripple’s CEO, Brad Garlinghouse, and Navin Gupta, Managing Director for South Asia & MENA, revealed the news while attending the Dubai Fintech Summit.

Additionally, this move coincides with the announcement of the company’s seventh Swell Global conference, scheduled to take place on November 8-9 in Dubai. 

The company considers the MENA region important, with 20% of its RippleNet customers based there, including SABB, Qatar National Bank, Al-Ansari Exchange, Lulu Financial Holdings, and RAK Bank. 

Over 50% of Ripple’s payment volume in MENA is cross-border payments like remittances from UAE, Bahrain, and Saudi Arabia to India. In 2020, DIFC was chosen as its MENA headquarters due to Dubai’s innovation-forward regulations and reputation as a leading global financial center.

Dubai was chosen for Ripple’s office and Swell Global due to its progressive regulations that allow for growth in the crypto industry while promoting responsible behavior, according to Garlinghouse.

Garlinghouse said:

Regulators here have risen to the challenge of establishing a framework that allows the local crypto industry to thrive, create jobs and increase economic growth while also ensuring participants act in a responsible manner.

Ripple’s Commitment To Improving Financial Institutions

As per the press release, in 2021, the company launched its first-ever On-Demand Liquidity deployment in partnership with Pyypl, a blockchain-based financial services technology company, in the Middle East. ODL utilizes XRP, a digital asset, to facilitate instant and cost-effective cross-border payments. 

The deployment enables financial institutions and Small- and Medium-Sized Enterprises (SMEs) to utilize previously trapped pre-funded capital to expand their businesses. Since its launch, billions of dollars have already been transacted through ODL in the MENA region. 

Ripple has expressed its commitment to improving financial institutions in the Middle East. With an estimated $156 trillion worth of cross-border payment flows expected in 2022, the need for faster and more efficient remittance markets and corridors in the region is on the rise. 

“Ripple excels” in this area, said Navin Gupta, Managing Director for South Asia & MENA at Ripple, noting the company’s expertise in leveraging crypto to tackle the challenges associated with cross-border payments. Ripple is proud of its presence in the UAE and looks forward to future growth in the region.

The Swell Global 2023 event will gather the company’s clients and partners following successful events in London and Singapore. Garlinghouse will give a keynote speech at the Dubai Fintech Summit 2023 and other leaders in fintech, finance, and crypto.

Related Reading | Ethereum’s Post-Upgrade Liquidity Surge: What Happened To The 1.55M ETH?

Binance Under Scrutiny, Dubai Cracks Down On Crypto License Applicants: Report

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Dubai is ramping up its oversight of crypto license applicants, with officials at the Virtual Assets Regulatory Authority (VARA) requesting more information from Binance, one of the world’s largest crypto exchanges, according to the latest report, citing a person with knowledge of the matter.

The move comes after last year’s bankruptcy of digital-asset exchange FTX and reflects a wider trend of increasing global scrutiny of the crypto industry.

Dubai, which has been trying to foster innovation while ensuring proper oversight of the crypto industry, is a significant hub for Binance’s Middle Eastern expansion plans. 

The emirate’s stricter approach could pose a challenge for Binance CEO Changpeng “CZ” Zhao, who is based in Dubai and is under pressure from US regulators.

According to anonymous sources, VARA requests similar information from other international companies seeking permits. The regulator is looking for information on ownership, board procedures and auditing at the global group level of Binance, which has a complicated corporate structure with several holding companies.

Binance has said that “it has disclosed all necessary information to VARA on a proactive basis and in line with regulatory and fiduciary responsibilities.” However, according to sources, the queries from VARA are taking longer to address due to Binance’s size and complexity.

In early February, a senior executive at Binance said that the exchange had been trying to hire an auditor for its entire balance sheet, but finding a firm able to take on the work was challenging. 

The recent lawsuit by the US Commodity Futures Trading Commission against the largest crypto exchange and its CEO, CZ, for alleged derivatives violations has added to the pressure on the company.

Moreover, as reported by TronWeekly, in Q1, the company suffered a major setback as it saw a 16% decline in its market share, resulting in a closing market share of 54%. The primary reasons behind this decline were the CFTC’s legal actions against Binance and the termination of its zero-fee trading program.

US Regulators Pressure Binance As Net Flow of Funds Decline

According to a report by Glassnode, a crypto data analyst, US regulators are exerting pressure on Binance. Given the uncertainty surrounding the solvency of banks and exchanges, market sentiment has been evaluated by examining the net flow of funds into and out of the exchange.

Glassnode’s analysis indicates that the net flow of stablecoins on the Ethereum blockchain through the company has been negative, with a 14-day Exponential Moving Average (EMA) displaying a net outflow of -$295M/day, the largest in history. 

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Source: Glassnode

In addition, the overall USD value of Binance reserves has decreased by 45.1% or $29.6 billion but has stabilized at $35.9 billion since the FTX fallout. The drop can be attributed to the decline in token prices and significant redemptions of BUSD, a stablecoin. 

Nonetheless, the YTD market rally has pushed the total USD-denominated value of Binance reserves back above $35 billion this week.