Kalam Crypto #127: Positive Regional Regulatory Updates from VARA, SCA, & Qatar
This week brings several positive regulatory updates from the region.
“There is only one success – to be able to spend your life in your own way.” Christopher Morley
Ahlan wa sahlan, and welcome to the 127th edition of CoinMENA’s weekly newsletter, Kalam Crypto! This week brings several positive regulatory updates from the region. The UAE’s Securities and Commodities Authority (SCA) and Dubai’s Virtual Asset Regulatory Authority (VARA) announced new licensing rules, while Qatar unveiled its much-anticipated Digital Assets Framework. Additionally, Bitcoin ETFs bounced back after two weeks of outflows. All this and more in this week’s edition of Kalam Crypto!
Local News 📍
UAE Regulators Announce New Licensing Requirements: The UAE’s Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA) have introduced new licensing rules for Virtual Asset Service Providers (VASPs). This collaboration marks a significant step in regulating the growing virtual asset sector in the region, ensuring better compliance and security. The framework covers tokenization, smart contracts, and custody arrangements, which will provide greater legal clarity for the industry and promote a safer environment for digital asset transactions. Check out what our CEO Talal Tabbaa had to say about it:
Qatar Release Digital Assets Framework: Qatar has introduced a new regulatory framework for digital assets through the Qatar Financial Centre (QFC) in Doha. The framework called the QFC Digital Assets Framework 2024, establishes the legal and regulatory basis for digital assets. It covers key areas such as tokenization, legal recognition of property rights in tokens and their underlying assets, custody solutions, and processes for the transfer and exchange of tokens. Additionally, the framework provides legal recognition for smart contracts, supporting the growing cryptocurrency activities in the MENA region.
Global News 🌍
Business adoption of Bitcoin grew 30% in a year: A recent River report reveals that businesses now hold 3.3% of Bitcoin's total supply, or 683,332 BTC, as of August 2024, reflecting a 587% increase since 2020 and 30% growth in the past year. Five major companies—MicroStrategy, Block.one, Tether, BitMEX, and Xapo—hold 82% of all corporate Bitcoin, amounting to 559,000 BTC. Private firms collectively hold 23,000 more BTC than public companies. River estimates business Bitcoin holdings will grow between 204 and 519 BTC daily until 2026, translating to $12.2M–$31.1M per day at a $60,000 price point.
Mastercard Release a Bitcoin Card: Mastercard has introduced a non-custodial Bitcoin debit card, denominated in euros, allowing users to spend Bitcoin without transferring custody to a third party. The card is issued by the financial institution Nexo and leverages a decentralized protocol to process transactions. Mastercard's new card supports payments with Bitcoin while avoiding the need for custodial wallets, giving users more control over their assets. This move is part of Mastercard's ongoing efforts to integrate digital currencies into mainstream financial services.
Keep an eye on 👀
ETF Flows: U.S. spot Bitcoin ETFs ended an eight-day streak of outflows, reporting $28.72 million in net inflows on Monday. Fidelity’s FBTC led with $28.6 million, followed by Bitwise’s BITB with $21.99 million. Meanwhile, Grayscale’s GBTC saw $22.76 million in outflows, and BlackRock’s IBIT recorded $9.06 million in outflows. The total daily trading volume for Bitcoin ETFs reached $1.61 billion. In contrast, Ether ETFs continued to see outflows, totaling $5.20 million, marking five consecutive days of negative flows.
CoinMENA News 🗞️
🚨NEW Partnership Announcement: We are excited to announce that CoinMENA has partnered with Bitpanda Technology Solutions to enhance trading efficiency and expand its crypto-asset offerings. This collaboration with an industry leader will allow CoinMENA to rapidly add new crypto assets, fulfilling one of the most requested features from users while maintaining top-tier trading services. To learn more about the partnership, kindly check out our blog.
Tweet Of The Week 🐥
Quiz Corner ✅
Last week’s question: which cryptocurrency is known for introducing smart contract functionality? Ethereum
This week’s question, What significant regulatory move has recently shaped the crypto landscape in the UAE?
A) Introduction of a new digital asset tax
B) Collaboration between VARA and SCA on licensing rules
C) Ban on all crypto exchanges in the region
D) Introduction of a central bank digital currency (CBDC)
See the answer in next week’s newsletter. Or check out our new learning platform https://university.coinmena.com/
