Maelstrom CIO predicts temporary bitcoin plunge

Abu Dhabi Approves M2 for Crypto ServicesM2, a virtual asset firm based within Abu Dhabi Global Market (ADGM) in Abu Dhabi, has received authorization from the Financial Services Regulatory Authority (FSRA) to establish a multilateral crypto trading facility in the United Arab Emirates (UAE) capital.This pivotal development, announced on Wednesday, allows M2 to provide both retail and institutional clients in the region with the capability to engage in activities such as purchasing, selling, and safeguarding digital assets, including Bitcoin.Photo by Jametlene Reskp on Unsplash2023 platform launchScheduled for a launch later in 2023, the M2 platform’s creation has been a year-long process, designed to cultivate trust, security, and integrity within the burgeoning virtual asset landscape. The company’s mission is to empower users with access to the highest level of services, including the ability to transact with cryptocurrencies using fiat currency and tap into derivative and yield offerings.Stefan Kimmil, the CEO of M2, acknowledged the significance of this regulatory milestone:“The process of obtaining the license is the first step on our journey, and we will remain in close dialogue with ADGM to ensure transparency around the custody of client assets.”Kimmil also expressed M2’s commitment to maintaining the high industry standards, as the UAE solidifies its position as a global front-runner in the virtual asset realm.Founded earlier this year, M2 claims to have a depth of credible expertise driving it, with executives having joined the firm from traditional finance giants such as Deutsche Bank, JP Morgan, and Goldman Sachs.Progressive regulationThe FSRA has taken a forward-thinking approach to digital asset regulation, having introduced a comprehensive framework for virtual assets in 2018. This framework has not only attracted numerous major cryptocurrency-focused companies to establish operations within its regulated financial and economic zone but has also fostered the region’s digital asset landscape.ADGM CEO Salem Al Darei underscored the organization’s mission of driving growth and investment opportunities in the virtual asset sector: “We remain committed to enhancing Abu Dhabi’s digital asset landscape and actively supporting the diversification of our thriving economy.”This sentiment is well-aligned with the broader vision of expanding the digital horizons of the UAE. The approval granted to M2 follows in the footsteps of significant advancements in the UAE’s cryptocurrency landscape. In November 2022, cryptocurrency exchange giant Binance secured financial services permission, bolstering its presence in the region.Furthermore, Rain, a prominent cryptocurrency exchange that serves the Middle East and North Africa (MENA), Turkey, and Pakistan, obtained regulatory approval last month to extend virtual asset brokerage and custody services to UAE residents.The emergence of M2’s platform points to the ongoing fostering of a dynamic virtual asset ecosystem that is currently ongoing in Abu Dhabi and the UAE at a national level. As the platform prepares for its forthcoming launch, it’s seeking to usher in a new era of accessibility, sophistication, and opportunity for the growing community of retail and institutional clients seeking to engage with cryptocurrencies in the UAE.

Zodia Markets Achieves Crypto Broker-Dealer Approval in UAEZodia Markets, the London-based digital asset marketplace backed by Standard Chartered Ventures, has achieved the milestone of receiving In-Principle Approval (IPA) to operate as a cryptocurrency broker-dealer in Abu Dhabi’s over-the-counter (OTC) market.Photo by Kamil Rogalinski on UnsplashADGM green lightThat’s according to a press release published by Zawya, a business intelligence media outlet that covers the Middle East and North Africa (MENA) region. The regulatory approval comes from the Abu Dhabi Global Market (ADGM), a renowned financial hub in the United Arab Emirates (UAE).Salem Mohammed Al Darei, CEO of the ADGM Authority, extended his congratulations to Zodia Markets on this achievement and welcomed them into the ADGM ecosystem. The In-Principle Approval marks the third step in a comprehensive five-stage application process outlined by ADGM. The subsequent stages involve securing final approval and undergoing an “operational launch” test to ensure seamless functionality, with a need to follow ADGM’s guidance meticulously.“The harmony of traditional and new-age finance in Abu Dhabi with an international leading digital asset firm such as Zodia Markets that is backed by the well-established Standard Chartered will contribute to further enhancing the attractiveness of ADGM as a preferred destination for global entities,” Al Darei stated.Expanding global footprintZodia Markets’ strategic decision to enter the UAE market aligns with the growing prominence of the UAE in the digital assets industry. This move compliments Zodia Custody’s decision to launch a crypto custodian service in the UAE emirate of Dubai back in May. While both businesses are independent of each other and fully segregated, they share the very same parent company in Standard Chartered.At the time, a memorandum of understanding (MoU) was signed by parent company Standard Chartered alongside the Dubai International Financial Center (DIFC).This latest move bolsters the geographical presence of Zodia Markets but also provides institutional investors in the Middle East and Africa with convenient access to the world of digital assets, thereby strengthening the company’s global footprint in the digital asset space.News of the firm’s intentions to enter the UAE market emerged last November. The company’s thinking at the time was that it could exploit an opportunity to expand in the MENA region due to more progressive regulation while the US and Europe were perceived to be developing at a much slower pace from a regulatory point of view, making them unattractive comparatively.ADGM has been at the forefront of shaping the regulatory landscape for companies involved in virtual assets. In April, it put forward a legal framework for decentralized tech. As part of its commitment to fostering innovation, ADGM recently granted permission for the operation of a virtual asset platform named M2 and issued a license to the cryptocurrency exchange Rain in July.Usman Ahmad, CEO of Zodia Markets, articulated the company’s mission, stating:“Our goal is to provide institutions seamless access to trade digital assets without compromising on the standards and controls that exist in traditional financial markets.”Zodia Markets is a joint venture between Standard Chartered and Hong Kong-based digital assets platform OSL, which also expressed its enthusiasm for the In-Principle Approval.

It has emerged in recent days that two London-headquartered crypto startups have taken steps towards expanding into the Asian market.  Funding to fuel Asian expansion Haruko, an investment platform that focuses on digital assets based in London, announced that it has raised $6 million in a Series A funding round, with the intention of using the funds to propel the company’s expansion into Southeast Asia. The round was led by White Star Capital and MMC Ventures. Combined with an initial seed round which was completed in March 2022, Haruko has raised a total of $16 million. The firm provided details of its latest funding earlier this week through a press release published via AccessWire.  Having been founded in 2021, the startup has established its operations in Europe and North America, adding in excess of 50 institutions to its client list. Those clients include hedge funds, family offices, market makers, over-the-counter (OTC) trading desks, digital asset custodians and prime brokerages. Haruko co-founder and CEO Shamyl Malik spoke to the firm’s global expansion plans, stating: "We're looking forward to continuing our global expansion, investing in exceptionally talented team members to support us in our goal of building out an industry-leading, end-to-end solution for digital assets and the future of the finance industry. We will continue to invest singularly in this mission, ensuring the quality of our products and services is at the forefront of all our activity." The company has already established a base in Singapore through which it can expand further into the Asian market. Asia is clearly becoming an attractive destination for crypto startups as alongside Haruko, a recent announcement from crypto custodian Copper outlined that it has acquired a trading license in Hong Kong.Photo by CHUTTERSNAP on UnsplashTCSP license in Hong Kong The London-headquartered digital assets custodian outlined on X that it has secured a Trust or Company Service Provider (TCSP) license in Hong Kong from the autonomous Chinese territory’s Companies Registry. Copper CEO Dmitry Tokarev commented on the milestone, stating: "Combining trust and efficiency is fundamental to our institution-first approach. This license approval in a key global hub only strengthens that unique offer, highlighting Copper’s compliance with Hong Kong’s regulatory frameworks and standards." The license enables the company in extending the offering of its digital asset custody services to clients in Hong Kong. Tokarev added that the license approval “is a key development in Copper’s expansion in the Asia Pacific market.” Back in 2020, the firm raised $8 million in funding in a Series A round that, as with Haruko, featured MMC Ventures, with a view towards expanding into Asia and North America. Towards the end of last year, the firm launched a settlement network for institutional crypto traders. Its ClearLoop network enables clients to manage collateral and settle trades across a number of exchanges while increasing capital efficiency and mitigating counterparty risk. Over the course of the month of June, the company claimed to have processed 13.1 million trades via ClearLoop, accounting for a notional traded volume of $109.9 billion. 17,500 individual risk clearing settlements were finalized, with 3,600 inter-exchange movements. The company had a number of significant announcements last month, including a collaboration with the Sui layer-1 blockchain and the integration of the ClearLoop system by global crypto exchange, Kraken.