Four in 10 wealthy UAE investors hold crypto, survey finds

XREX secures MPI license from Singapore regulatorTaipei-based cryptocurrency exchange XREX has received in-principle approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution (MPI) license.Photo by Mark König on UnsplashBitCheck payment tool offeringThe approval marks a crucial step for the fledgling exchange business, enabling it to offer digital payment token products and services in Singapore. Once it’s upgraded to a full license, XREX will be able to expand its BitCheck payment tool, currently facilitating transactions involving fiat currencies, stablecoins and various cryptocurrencies.This regulatory milestone places XREX among the approved exchanges, stablecoin issuers, neobanks and payment service providers in Singapore. Since the introduction of the licensing regime in January 2020, the MAS has received over 580 applications for payment services licenses, with fewer than 20 Digital Payment Token (DPT) licenses and in-principle approvals granted to date. XREX now joins the ranks of established entities like Coinbase, DBS Vickers, Circle, Paxos, Ripple and Revolut in receiving approval from the MAS.Taking to X on Friday, the company acknowledged the license award while outlining that the license would mean that it can now start to offer an e-money issuance service, cross-border money transfers, account issuance services, digital payment token services, as well as merchant acquisition and domestic money transfer services.Serving home and overseas marketsWayne Huang, Co-Founder and Group CEO of XREX, emphasized that XREX Singapore will serve as the primary provider of products across the Asia Pacific (APAC) region. Simultaneously, XREX Taiwan will continue to play a pivotal role in product design, engineering, research and threat analysis functions for the company. Positioning itself as the Asia Pacific headquarters for the group, XREX Singapore aims to target emerging markets in the region where access to USD liquidity may present challenges.Christopher Chye, CEO of XREX Singapore, expressed the significance of the approval, noting the thorough scrutiny by Singapore’s regulatory authorities. Chye stated:“Singapore wants to attract responsible actors, and the reality is that doing so necessitates a fine-tooth comb. This is great for Singapore and great for our industry as a whole. XREX is looking forward to introducing cheaper, safer, and faster domestic and cross-border payments for Singapore and emerging market businesses.”It was no secret that the company had been working towards acquiring a license in Singapore for some time. In December 2022, its Singapore team tweeted out such a claim, adding that an MPI license from MAS “is one of the most coveted and well-regarded licenses worldwide.”Highlighting Singapore’s progressive and robust regulatory framework, Nick Chang, XREX Group and XREX Singapore Head of Compliance, said:“Singapore boasts a progressive and robust regulatory framework, offering our users the clarity and confidence they need to access digital assets and use stablecoins.”XREX has also made in-roads into the European market. In May of last year, the company opened an office in Lithuania, while becoming a crypto asset service provider within the Baltic state. Earlier this year the company strengthened its compliance process by integrating transaction monitoring and investigative tools from blockchain analysis firm Chainalysis.

UAE strengthens regulatory oversight of virtual asset service providersThe Central Bank of the United Arab Emirates (CBUAE) and other relevant authorities in the Middle Eastern country have issued new joint guidance for virtual asset service providers (VASPs) operating within the UAE.Photo by Thomas Drouault on UnsplashPushing back against unlicensed VASPsThese guidelines aim to prevent VASPs from operating without proper licenses in the jurisdiction, demonstrative of the country’s efforts in fighting financial crimes and maintaining the integrity of its financial system.The document outlines the penalties for VASPs operating in the UAE without a valid license. They will face civil and criminal sanctions, including financial penalties against the entity, its owners and senior managers. Moreover, the guidance cautions that licensed financial institutions (LFIs), designated non-financial businesses and professions (DNFBPs) and licensed VASPs that engage with unlicensed VASPs will be subject to law enforcement actions.The National Anti-Money Laundering and Combating Financing of Terrorism and Financing of Illegal Organizations Committee (NAMLCFTC) is the specific entity responsible for having issued the guidance in conjunction with the central bank.VASP ‘red flags’As part of those guidelines, a list of “red flags” for VASPs has been included. Through reliance on these indicators, it’s hoped that bad acting VASPs can be identified by consumers and other industry stakeholders. The document refers to red flags such as the lack of regulatory licensing, no physical presence in the UAE, pressure being applied by a platform to invest quickly and a lack of regulatory disclosure as items to look out for.Otherwise, the guidance encourages stakeholders to be suspicious of unsolicited contact being employed as a means of operation by a platform, the lack of a record of compliance, poor website and communications and the offer of unrealistic promises.Lastly, the document suggests that people should be observant of any illicit use of virtual currency, the use of fake wallets, engagement in terrorist financing and a lack of consumer protection as red flag items.The new guidance instructs all LFIs, DNFBPs and licensed VASPs to report transactions involving suspicious parties. The guidance also emphasizes that information related to unlicensed virtual asset activities can be reported through whistleblowing mechanisms.Exiting FATF ‘grey list’The release of these guidelines is part of an effort by the UAE to be removed from the Financial Action Task Force’s (FATF) “grey list.” The grey list indicates deficiencies in a country’s anti-money laundering (AML) and counter-terrorist financing (CTF) regimes.Improving control mechanisms relative to crypto has been a theme for several countries who are similarly looking to exit the FATF grey list. Last week, it emerged that Turkey is crafting new regulations governing crypto in an effort towards “grey list” removal. Earlier this year, Pakistan announced a renewed ban on cryptocurrency, as part of its efforts to remain off the grey list it had been listed on over an extended period.The UAE was placed on the FATF’s grey list in March 2022 due to AML and CTF deficiencies. However, the country made a commitment to work with the global watchdog to improve its regulatory frameworks in these areas.

Nassau and Treasure Labs Go Metaverse to Step into the Future of StyleKorean sports equipment manufacturer Nassau has entered into a partnership with metaverse company Treasure Labs to step into the future of style.According to a report by local news agency News1, this collaboration aims to introduce an innovative fashion brand on Pararium, the metaverse platform developed by Treasure Labs. Pararium users will have the opportunity to enjoy unique fashion items through their avatars while engaging in virtual experiences and earning rewards.Photo by Ben Hershey on UnsplashSports brandHaving built a reputable brand over the course of 50 years, Nassau is widely recognized in Korea for producing durable sports goods. By joining forces with Treasure Labs, Nassau aims to tap into the potential of Web3 content and services to enhance its global market presence.Metaverse platformTreasure Labs has been establishing a strong presence in the metaverse sector through collaborations with various entities such as blockchain platform Solana Labs, cryptocurrency exchange Crypto.com, and decentralized gaming platform The Sandbox. Notably, Treasure Labs is the first Korean company to secure investment from the Solana Foundation, the sister organization of Solana Labs.Both companies are enthusiastic about the prospects of this partnership. A representative from Treasure Labs emphasized that the collaboration will introduce a creative fashion brand that appeals to millennials and Generation Z, bridging the virtual and real worlds within the metaverse. The representative further mentioned plans to establish a dedicated brand hall within Pararium, where a series of events will showcase unique and trendy Web3 content. Echoing this sentiment, a Nassau official anticipates that the collaboration will give both firms a competitive edge in the global market.