MANTRA snags VASP license in Dubai

Full operating license approval for Hex Trust in DubaiIn yet another instance of progress for the cryptocurrency sector, Hex Trust MENA FZE, the Dubai-incorporated subsidiary of Hong Kong-headquartered institutional-grade crypto custodian Hex Trust, has successfully secured an operating license from the Dubai regulator, the Virtual Assets Regulatory Authority (VARA).Photo by Mohammed Nasim on UnsplashExtending regional presenceThis regulatory milestone, acknowledged by the firm in a statement it made public on Wednesday, not only solidifies Hex Trust’s presence in the Middle East but also marks a strategic move to extend its crypto custodial services to institutional clients and sophisticated investors in Dubai. While based in Hong Kong, Hex Trust has offices in Dubai, Singapore, Vietnam and Italy.This full operating license signifies the successful conclusion of the approval process within VARA’s regulatory framework for crypto service providers, which came into effect earlier this year. Initially granted a minimum viable product (MVP) operational license in February, Hex Trust’s latest achievement grants it the official authorization to continue its operations in the region, marking a pivotal moment in the company’s expansion strategy.With an increased footprint in Dubai, Hex Trust is now poised to deliver comprehensive crypto custodial services to both institutional clients and sophisticated investors. This strategic move is in line with the company’s aspiration to meet the escalating demand for secure and regulated digital asset storage solutions in the Middle East.Filippo Buzzi, Hex Trust’s MENA regional director, underscored the company’s dedication to expanding its reach in the Middle East, stating:“Hex Trust is fully committed to expanding into the Middle East and sees enormous potential for digital asset growth given the progressive regulations, welcoming governments, and thriving crypto ecosystem in the region.”This statement not only highlights the favorable regulatory environment but also emphasizes the increasing interest in cryptocurrencies within the Middle Eastern market.$88 million funding roundHex Trust’s recent success in Dubai comes on the heels of its $88 million Series B funding round last year, showcasing the company’s proactive approach to securing regulatory approvals on a global scale.In August, the firm received regulatory clearance in France, enabling it to offer a spectrum of services, including digital asset custody, purchasing, selling and trading. These regulatory triumphs position Hex Trust as a reputable and compliant entity in the competitive crypto custodial space.Series of approvalsWhile Hex Trust has demonstrated its adept navigation through regulatory processes in Dubai, it’s one of many companies to obtain licensing in the emirate in recent weeks.It emerged yesterday that CRO DAX Middle East, the Dubai-registered subsidiary company of Singapore-headquartered Crypto.com, received a trading license from VARA.Last week, Korean Web3 company CarrieVerse clarified that it had joined the Dubai Multi Commodities Center (DMCC) as a metaverse service provider. The DMCC is a United Arab Emirates (UAE) government agency which has developed into a hub for investors and Web3 startups. CarrieVerse and the DMCC have not as yet revealed details regarding the roadmap for the partnership.At the start of this month, VARA awarded Singapore’s WadzPay, a business-to-business (B2B) technology firm that focuses on enabling digital asset-based transaction processing and settlement, a license to trade within the emirate. Meanwhile, on Nov. 1, it emerged that crypto wallet project Backpack had received a license from the Dubai regulator.

The U.S. Securities and Exchange Commission (SEC) approved the spot bitcoin exchange-traded fund (ETF) last Tuesday, prompting South Korean investors to flock to cryptocurrency exchanges to make transactions. However, the revenues recorded by these exchanges showed a mixed performance in response to this development due to their differing transaction fee policies, according to local news outlet DealSite on Monday.Photo by Maxim Hopman on UnsplashTrading volumes surge and retreatAccording to crypto analytics platform CoinGecko, as of 9 a.m. on Jan. 12 (KST), Upbit's trading volume on Dec. 11 and 12 was approximately $5.1 billion and $6.1 billion, respectively, for a total of about $11 billion. During the same period, Bithumb recorded $2.6 billion and $2.4 billion, respectively, totaling nearly $5 billion. However, as of this writing at 11 a.m. on Jan. 15, Upbit’s 24-hour trading volume has dropped back down to $2.1 billion and Bithumb to $874 million. "After the SEC's approval, crypto exchanges were simultaneously flooded with transactions," an anonymous industry employee commented. "Bitcoin and Ethereum were mainly traded." Fee divergenceAlthough the ETF approval caused a general uptick in trading volumes, the amount of revenue that the exchanges earned from transaction fees varied. Upbit charges a fee of 0.05% for both buying and selling crypto, meaning the exchange made an estimated KRW 14.8 billion in revenue from the fees from Dec. 11 to 12. Bithumb, on the other hand, hasn't earned any revenue from trading fees since its zero-fee policy was implemented in October last year.  Bithumb had previously charged 0.25% for transactions and 0.04% with coupons. By implementing the former, the exchange lost about KRW 15.8 billion ($12 million) in revenue, and with the latter, it lost about KRW 2.5 billion. For crypto investors, Bithumb's zero-fee policy has made investing more accessible, but the exchange is unlikely to reap its own rewards. Significant investor interestMoreover, with trading for the spot bitcoin ETF beginning on the 11th, the influx of funds is expected to boost trading. "All told there were 700,000 individual trades today in and out of the 11 spot ETFs," Bloomberg ETF analyst Eric Balchunas told X (formerly Twitter). "For context, that is double the number of trades for $QQQ." $QQQ refers to the Invesco QQQ ETF. According to an image that accompanied Balchunas’ post, the total trading volume across all 11 spot ETFs was reportedly $4.3 billion. Grayscale's GBTC had the highest volume at $2.1 billion, followed by BlackRock’s IBIT at $1 billion and Fidelity’s FBTC at $673 million.

Velo Token (VELO) has experienced a significant surge in popularity within Southeast Asia's crypto market, drawing comparisons to established players like XRP. Market intelligence platform Santiment highlighted VELO's meteoric rise, noting a substantial 358% increase in price over the last six weeks. This remarkable performance has captured the attention of investors and analysts alike, leading to discussions regarding its potential to become the "XRP of Southeast Asia."Photo by Lucas George Wendt on UnsplashFactors driving VELO's growthThe primary factor fueling VELO's rapid ascent is its substantial trading volume, particularly in the Asian market. According to Santiment data, VELO's trading volume has surged to $95.95 million, a noteworthy figure for a token outside the top 100. This surge in volume reflects growing interest and confidence in VELO, attributed to its integration with leading blockchain platforms such as Solana (SOL) and Binance Smart Chain. VELO has demonstrated significant progress, with a 57% increase over the past seven days and an impressive 225.51% surge over the last 30 days. Despite recent market fluctuations, VELO has maintained a bullish trend, recording a 16.88% rise from a 24-hour low. Santiment's Weighted Sentiment metric indicates a bullish outlook for VELO compared to XRP, further bolstering investor confidence in VELO's potential. Contributing factors to VELO's successSeveral factors have contributed to the unprecedented surge in VELO's value. Notably, VELO tokens are stored in reputable self-custody wallets such as Ledger, Lobstr, and Freighter, enhancing their popularity among investors. Endorsements from crypto influencers, who have labeled VELO as the "XRP killer," have also amplified investor interest. Additionally, VELO's strategic partnerships with industry leaders like iRemit, Visa and Lightnet have expanded its regional market and validated its capacity to revolutionize cross-border payments and digital financing solutions. As a result, VELO has witnessed substantial growth in trading volume, with its price reaching $0.029 per token. VELO's rise signifies its potential as a catalyst for innovation in the cryptocurrency sphere, akin to XRP. Its unique combination of smart contracts, absent in the XRP blockchain, adds to its appeal for investors seeking efficiency and versatility in financial transactions. Velo Labs' focus on revolutionizing international remittance markets further solidifies VELO's position as a game-changer in the crypto landscape. With the possibility of expanding its popularity beyond Asia, VELO's market cap could experience significant growth, further cementing its presence in the cryptocurrency market.