Crypto Oasis Founder Thinks UAE Set Up For Crypto Success

Deputy Prime Minister and Minister for Finance Lawrence Wong is slated to unveil the Singapore 2024 Budget Statement on Feb. 16. As Singapore prepares for the unveiling of its 2024 Budget, the city-state’s Web3 community is amplifying its call for crucial government backing. That’s according to a recent report by The Straits Times. The plea from Singaporean firms revolves around two pivotal areas: one, nurturing a proficient talent pool well-versed in blockchain technology; and, in addition to that, having a strength and depth in cybersecurity, so as to fortify defenses against cyber threats.Photo by David Pardo Bernal on UnsplashUrgent need for Web3 talentSome time ago, stakeholders in Singapore set out their stall in terms of the ambition of firmly establishing the city-state as a global hub for Web3 development. It’s off to a good start with many notable crypto and Web3 companies having established themselves in Singapore. However, broadening that industry hub to the fullest extent will involve overcoming the significant hurdles hindering the growth trajectory of Singapore’s Web3 sector. Top of the list is the scarcity of skilled professionals in the blockchain domain. Danny Lim, a core contributor at MarginX, a decentralized exchange, stressed the pressing demand for seasoned developers. Lim underscored the necessity of supporting Web2 developers transitioning into Web3 realms, especially those grappling with job displacement, to solidify Singapore’s status as a nucleus for groundbreaking blockchain ventures. Elaine Zhu, the general manager of the Asian division of blockchain infrastructure firm Parity Technologies, emphasized the critical need for blockchain education, expressing apprehension over the dwindling influx of new developers. In citing a recent report by crypto-focused venture capital firm Electric Capital which quantified developer activity across Web3, Zhu noted that the number of experienced developers in Singapore remains healthy. However, the report found that the number of newly qualified developers dropped by 52 percent last year. Bolstering cyber defensesAdditionally, the industry is clamoring for fortified cyber defenses to shield against the escalating threat landscape targeting digital assets. This focus on security underscores the broader challenge of ensuring the secure proliferation of Web3 technologies and digital currencies within Singapore’s technological ecosystem. A report by Singapore-based blockchain security firm Beosin last year found that exit scams are a growing concern in the crypto-sphere. At the end of last month, the Singapore Police Force, alongside the Cyber Security Agency of Singapore (CSA), issued an advisory in order to raise awareness regarding crypto-centric cyber attacks. Ong Chengyi, representing Chainalysis, hailed Web3 as pivotal for long-term growth and advocated for sustained governmental support to enhance the sector’s capability in mitigating risks using advanced technological solutions. Ong remarked:“We hope to see more public-private collaboration to bolster Singapore’s defences against crypto crime and cyber threats more generally, through the utilization of data and technology.” Angela Ang of TRM Labs echoed that sentiment, emphasizing the imperative for heightened regulatory support to nurture the expansion of digital assets. Ang stated:“To deliver clarity to businesses at scale, whether it’s through licensing decisions or implementation guidance, the Government must invest in both human capital and technology throughout the regulatory process.” 

Wemade Signs MOU with Hub71 to Expand WEMIX Ecosystem in the UAEWemade, a leading blockchain gaming company based in South Korea, has recently entered into a memorandum of understanding (MOU) with Hub71, a global tech hub situated in the United Arab Emirates (UAE).Photo by Mohamad on PexelsGlobal tech hubHub71, established in 2017, serves as a global tech hub that brings together startups, corporates, and investors in the Abu Dhabi Global Market (ADGM), which is also home to Wemade’s branch in the Middle East and North Africa (MENA) region called WEMIX MENA.Hub71 benefits from the support of several influential partners, including Mubadala, the Abu Dhabi Investment Office (ADIO), and ADGM. Mubadala, a sovereign investor, manages a diverse portfolio of assets in the UAE and overseas. ADIO acts as the pivotal government hub promoting investment in Abu Dhabi. Meanwhile, ADGM functions as an international financial center with a regulatory framework based on UK common law.Web3 initiativeIn February, Hub71 launched a dedicated initiative called Hub71+ Digital Assets, aimed at fostering Web3 startups and blockchain technologies in the UAE. The initiative has attracted over $2 billion in capital commitments. Notable partners include Binance, Algorand, Polygon, Mastercard, and Amazon Web Services.As part of this collaborative endeavor, Wemade will participate as a partner by leveraging its native WEMIX token. While WEMIX and startups within its ecosystem will have expedited access to Hub71’s programs, GameFi and DeFi companies in Hub71 will have the opportunity to join the WEMIX ecosystem.Korea and UAE’s investment cooperationEarlier this year, the UAE and South Korea signed an MOU, outlining a $30 billion investment plan in the East Asian nation. This agreement has facilitated the entry of Korean firms into the UAE while also attracting investment opportunities.Wemade aims to expand its WEMIX ecosystem by establishing partnerships with various blockchain projects, both domestically and internationally. The company views the MOU with Hub71 as a significant stepping stone for its expansion in the MENA region.

Credit Saison, one of the largest credit card issuers in Japan, is accelerating its global venture strategy with the creation of Onigiri Capital, a new fund targeting early-stage startups building on blockchain technology. Set up in Singapore last month through Credit Saison’s corporate venture arm, Saison Capital, the vehicle is aiming for up to $50 million in commitments and will run for 10 years, with an optional two-year extension. The fund has already secured $35 million toward its target.Photo by Markus Winkler on UnsplashBuilding on a fintech track recordThe initiative is part of Credit Saison’s broader plan to expand in emerging markets and spur innovation in financial services, drawing on Saison Capital’s track record. Established in 2019, the venture arm has backed fintech startups across Asia and, since 2021, has increasingly focused on blockchain-based finance, investing in more than 40 companies. The firm said those investments laid the groundwork for Onigiri Capital, which will also enable other financial institutions to invest alongside Credit Saison in promising blockchain ventures. Onigiri Capital will concentrate on five areas: stablecoins, payments, asset tokenization, decentralized finance (DeFi), and financial infrastructure. The fund will invest primarily at the seed and early stages, with an emphasis on long-term growth. Managing the fund are Qin En Looi, a partner at Saison Capital involved in over 40 blockchain investments, and Hans de Back, a venture investor with more than two decades of experience. Cross-border stablecoin pilotThe launch comes as Japan steps up efforts in digital assets beyond investment alone. According to Electronic Times, the first phase of “Project Pax,” a cross-border stablecoin remittance pilot involving financial institutions in Japan and South Korea, concluded successfully last week. Participants were Progmat—a tokenization platform backed by a consortium of major institutions, including MUFG—along with Datachain and Shoko Chukin Bank from Japan, and Shinhan Bank, NH Nonghyup Bank, and Kbank from South Korea. Fair Square Lab and Korea Digital Asset Custody helped develop an application programming interface (API) for the trial. The pilot demonstrated the feasibility of a network that converts fiat currency into stablecoins for on-chain transfers and then back into local currency at the destination, an approach expected to reduce the time and cost of cross-border payments. The results add momentum to Japan’s bid to modernize financial infrastructure, a backdrop that Onigiri Capital aims to capitalize on as it deploys capital into the sector.