Dubai regulator takes action against unlicensed crypto firms

Strategic investment sees C1 Secondaries Fund target Animoca BrandsThe C1 Secondaries Fund, an investment fund focused on the digital assets space with a presence in Silicon Valley and Dubai, is poised to make strategic investments in crypto powerhouses like Hong Kong-based Animoca Brands.Photo by Towfiqu barbhuiya on UnsplashReady to deploy capitalThat’s according to details from a pitch deck disclosed by the Australian Financial Review on Sunday. The C1 Fund is ready to deploy substantial capital, ranging from $20 million to $50 million, to acquire private holdings in crypto companies. The fund is only interested in targeting companies that boast valuations of $300 million and above from their most recent funding rounds.The crypto venture capital fund was co-founded by former Coinbase executives. Off the back of recent bullish momentum within crypto markets, the C1 Fund is reportedly eyeing significant discounts of nearly 80% on its investments.Share purchase offerThe fund has extended an offer to purchase Animoca Brand shares at approximately $1.12, representing a 75% markdown from its last capital raise where shares were sold at around $4.50.A few years ago, Animoca Brands, a firm that concentrates on blockchain gaming, non-fungible tokens (NFTs) and the metaverse, had been listed on the Australian Stock Exchange (ASX). However, in 2020, the company listing was removed due to the swapping of stock for crypto tokens. It still has involvement with Australia through equity investment from Australian firms Koda Capital and KTM Ventures.In September, Hong Kong-based venture capital firm CMCC Global led a $20 million funding round into Animoca. At the time, it was suggested that funding would go towards further development of Mocaverse, an Animoca project involving the development of Web3-native tools geared towards the gaming and entertainment sectors.Following some market uncertainty regarding the financial health of the company earlier this year, Animoca provided an update on its financial position, clarifying that it held $3.4 billion in cash and assets.Chainalysis interestThe strategic move by the C1 Fund aligns with the recent uptick in the crypto space. Bitcoin (BTC), the market leader, surpassed the $40,000 price point in the first week of December, propelling the overall crypto market capitalization to over $1.6 trillion. At the time of writing, BTC hovers just over $40,000.Similarly, the fund is weighing up an investment in American blockchain analysis firm Chainalysis, offering to acquire its shares at a substantial 63% discount from its latest capital raise.Beyond traditional crypto assets, NFTs are experiencing a surge in market interest. A recent report by DappRadar revealed that NFT trading volume approached $1 billion in November, signaling a notable shift in user behavior. The average value of NFT transactions also witnessed a substantial increase from $126 to $270 in November.The C1 Secondaries Fund was established in March, targeting $500 million worth of investment in blockchain, crypto, Web3 and fintech. As the C1 Secondaries Fund strategically positions itself amid the crypto market boom, its pursuit of discounted investments in industry giants like Animoca Brands and Chainalysis reflects the fund’s confidence in the sustained growth and potential of the digital assets sector.

Crypto emerges as topic in Indonesian election campaignAs Indonesia gears up for its upcoming presidential election, the country’s crypto market has become a focal point for political discourse. Gibran Rakabuming Raka, a vice presidential candidate and the eldest son of President Joko Widodo, recently unveiled his plans to foster expertise in blockchain and crypto within the Southeast Asian nation.Chosen as the running mate for presidential candidate Prabowo Subianto, the 36-year-old politician aims to elevate tech education in Indonesia, opening avenues for the younger generation, particularly in the realm of digital assets. According to a report by Indonesian online news portal detikNews, while speaking at a political gathering on Dec. 10, Gibran asserted:“We are preparing blockchain experts, we are preparing cyber security experts, we are preparing crypto experts.”Photo by Nick Agus Arya on UnsplashCrypto potentialIndonesia has emerged as being ahead of the curve in terms of crypto adoption, ranking seventh on Chainalysis’ 2023 global crypto adoption index. With an estimated 18 million crypto investors, the country boasts a robust industry association that also functions as a self-regulatory body.Local news media reported in October that the Southeast Asian country has seen a 10.1% year-on-year increase in the number of crypto investors. At the time, Tirta Karma Senjaya, Head of the Commodity Futures Trading Regulatory Agency, said, "Growth in the number of crypto investors in Indonesia continues to increase, but investors are still looking for the right time to buy crypto.”Private sector entities have also identified the raw potential. In the same month, Web3 consulting firm Tiger Research, in partnership with South Korean crypto data platform Xangle, produced a report which identified significant potential for the development of Indonesia’s Web3 market. There are over 30 crypto exchanges operating in the country, acting as the primary channel through which growth in crypto is propelled in Indonesia.Capitalizing on crypto interestThe government, under President Widodo, has actively sought to capitalize on this crypto enthusiasm, going as far as establishing a local “stock market” dedicated to crypto assets.Gibran’s proactive stance on crypto education aligns with his broader vision of positioning Indonesia at the forefront of the global digital revolution. The country’s rapidly growing tech landscape and crypto adoption make it an opportune space for fostering expertise in these cutting-edge technologies.As the presidential election approaches, Gibran’s commitment to cultivating a pool of crypto experts underscores the potential influence of the crypto industry in shaping Indonesia’s economic future.An international topicCrypto is increasingly becoming an important topic in elections globally. In the United States, many of the presidential candidates, particularly within the Republican Party, have publicly expressed their interest in crypto and blockchain. Yesterday, Ripple CEO Brad Garlinghouse took to the X social media platform on the subject, stating:”Team @Ripple is putting a stake in the ground, leading the charge with other industry leaders to support pro-innovation and pro-crypto candidates in the 2024 US election cycle. The US cannot afford to continue taking a back seat on the global stage.“With Indonesia’s election frontrunners, Prabowo and Gibran, expressing interest in the sector, it remains to be seen how this focus on crypto will resonate in the upcoming political debate on Feb. 4.

Internal Dispute Sees Co-Founder Depart 5ire5ire, the Dubai-based blockchain platform, is facing a departure of one of its co-founders, Vilma Mattila, due to an internal dispute with her fellow co-founders.In discussion with Tech in Asia, Mattila confirmed her upcoming resignation, stating that she disagreed with the management and financial decisions made by the other co-founders without her consent. The exact timeline of her departure was not disclosed.Photo by bady abbas on UnsplashIndian originsMattila, who was already recognized as an angel investor, co-founded 5ire alongside Indian nationals, CEO Pratik Gauri and CTO Prateek Dwivedi. The company gained attention last year after a successful series A funding round that valued it at a remarkable $1.5 billion, establishing its status as a blockchain unicorn.While the start-up project has established itself in Dubai, its origin story leads back to India. In 2022, 5ire entered into a partnership with the Indian government via Atal Tinkering Labs (ATL). ATL is running an initiative to create and promote a culture of innovation and entrepreneurship in India. As part of that program which is being run in more than 10,000 Indian schools, 5ire collaborated with ATL to provide a blockchain module.Although headquartered in Dubai, the project still maintains that it is “a network of local developer communities established in various cities across India.” It has also been active in the country that makes for its administrative home. Last month, Abu Dhabi University in the United Arab Emirates hosted its first 5ire Web3 and blockchain hackathon.The university had signed a Memorandum of Understanding (MoU) with 5ire in February, with a view towards strengthening blockchain education, research and entrepreneurship, while maintaining a focus on sustainability and accessibility.$100 million raiseIn July 2022, it emerged that 5ire had raised $100 million from the UK-based Sram & Mram Group, an international conglomerate that concerns itself with projects in South and Southeast Asia. It got $10 million on signing the deal, with other tranches to follow. As of January, it had called off $20 million of that funding.5ire is positioning itself as “the world’s first blockchain unicorn with sustainability at its core.” The project seeks to align itself with the Sustainable Development Goals (SDGs) set out by the United Nations. It’s a layer one EVM-compatible smart contract platform that focuses on the development of a for-benefit blockchain ecosystem, aligned with the United Nations SDGs.Working towards mainnet releaseThe company has been diligently working on the development of 5irechain, a blockchain designed around the principles of the “Fifth Industrial Revolution,” from which the company derives its name. The launch of its mainnet is anticipated to take place in the coming quarters. In November 2022, it launched its Thunder (Alpha) testnet. Testnet Thunder (Beta) went live in February of this year.As the departure of Vilma Mattila unfolds, the future direction and leadership of 5ire will come under scrutiny. It remains to be seen how this internal dispute will impact the company’s progress and reputation in the blockchain industry.