Japan’s PM holds off on supporting Bitcoin as reserve asset

Crypto.com, the global crypto exchange platform headquartered in Singapore, has recently added an “AED Fiat Wallet,” allowing its users based in the United Arab Emirates (UAE) to deposit and withdraw UAE dirhams to and from their Crypto.com accounts. In a statement published on its website on Dec. 11, the firm outlined details of the added feature. So as to be able to access the AED Fiat Wallet, UAE residents will need to be registered on the platform with a UAE phone number. Once users configure platform settings to reflect the AED as their default currency, the platform displays the relevant deposit information to enable users to deposit the currency to their accounts. The minimum deposit has been set at 10 AED per transaction with a maximum of four million AED per day.Photo by Katerina Kerdi on UnsplashFacilitated by Standard CharteredCrypto.com claimed on X that the new feature could be set up easily, enabling fast and simple transfers. Additionally, the company is not charging users a deposit fee for AED deposits. Tarik Erk, Crypto.com’s General Manager for Middle East & Africa, explained that a collaboration with British multinational bank Standard Chartered had enabled the offering. Erk stated: “This new wallet launch is made possible through our global banking partnership with Standard Chartered which we announced in August, alongside the ongoing and valued support of VARA [Virtual Assets Regulatory Authority], which enables us to continue our expansion across the UAE. We’re extremely focused on offering our customers a seamless world-class experience and, at its very core, that includes ease of deposits and withdrawals – enabling our customers to interact with our products and services with as much flexibility as possible.” Crypto.com launched its service in the UAE in August, and at the time, it recognized the significance of its partnership with Standard Chartered. In September Standard Chartered announced the launch of crypto custody services in the UAE in collaboration with Brevan Howard Digital. The service was licensed by the Dubai Financial Services Authority (DFSA).  In November of last year, Crypto.com was awarded a license by VARA to provide virtual asset services. Last week, it emerged that the company had acquired Orion Principals Limited, an Abu Dhabi-based securities firm. The brokerage firm is licensed by the local regulator within the Abu Dhabi Global Market, an economic free zone and financial center. Crypto.com said that the acquisition will lead to the company rolling out new services to eligible platform users, including securities, options, futures and contracts for difference. Deutsche Bank partnershipHaving forged a partnership with TradFi banking giant Standard Chartered in the Middle East, Crypto.com announced a similar partnership with another TradFi giant, Deutsche Bank, last week. The collaboration will see Deutsche Bank provide the company with banking support and corporate banking services within its home base of Singapore, as well as in Australia and Hong Kong. Back in June, Deutsche Bank partnered with another crypto exchange business, Bitpanda, to assist it in offering real-time inbound and outbound payments on its platform. 

UAE Starts to Accept Crypto License ApplicationsEarlier this week, the United Arab Emirates (UAE) announced that it has commenced the process of accepting license applications from crypto companies.©Pexels/Andrea PiacquadioThe announcement was made by the Middle Eastern country’s Securities and Commodities Authority (SCA) on Monday. The decision comes in the wake of last year’s UAE Council of Ministers opting to regulate the country’s crypto sector as per Decision №111.VASP approval processAs part of the process, virtual asset service providers (VASPs) are obliged to apply to the SCA for approval with those already licensed within the UAEs financial-free zones not required to undertake the process.When it comes to the individual Emirates of Dubai and Abu Dhabi, both have already implemented their own licensing process relative to crypto service providers. In the case of Dubai, it already has its Virtual Assets Regulatory Authority (VARA) and its procedures have been deemed to be unified with the process now being implemented by the UAE.The SCA suggested that the initiative offers the opportunity for crypto companies to “regularize their status.”Key rulesThe SCA has set out nine articles as part of the process it is asking crypto companies to apply for and sign up to. Article 3 stipulates that VASPs can only trade digital or virtual assets that have been accepted and approved within an official list of virtual assets.Article 4 sets out the tasks and responsibilities of the virtual assets platform operator. It considers the need for integrity, transparency and professional behavior. Service access must be organized through procedures that facilitate access only for permitted persons.Article 5 highlights the obligations of VASPs relative to seven areas. These include operational efficiency and flexibility, and the provision of operational rules. That incorporates the need for the setting and maintenance of operational business rules and meeting operational rules according to a predefined set of standards.The policy sets out the right of the SCA to request provision of documents and data from a VASP and their receipt within a specified time period.Jurisdictional arbitrageThe UAE and particularly its Abu Dhabi and Dubai emirates are demonstrating that they’re open for business where the digital assets sector is concerned. It’s one location that’s on the rise in terms of coming to global prominence in competing for crypto business alongside places like Singapore and Hong Kong.The Biden administration in the United States has shifted policy relative to digital assets to the down side. On Wednesday it emerged that leading US exchange Coinbase has received approval to operate in Bermuda. It’s being speculated that negotiations are also underway in Abu Dhabi to secure a license for the company to trade there.On the day in which Securities and Exchange Commission (SEC) Chair Gary Gensler received a harsh grilling in front of the House Financial Services Committee on Capitol Hill, Coinbase CEO Brian Armstrong confirmed that the company is prepared to move overseas if the regulatory environment doesn’t improve in the United States.Meanwhile, earlier on Thursday, the European Union officially passed its Markets in Crypto-Assets (MiCA) legislation in the European Parliament, providing clarity for the digital assets industry in Europe. In moving forward with crypto licensing, the UAE is jockeying for position among a field of global centers that are vying for crypto business while the US falls behind.

Market speculates on Qatari investment driving bitcoin price surgeRumors are circulating within the cryptocurrency space that Qatar’s sovereign wealth fund may have dabbled in investing in bitcoin, leading to the recent surge in the bitcoin unit price.Such a move, while still an unconfirmed speculation, would be indicative of the increasing recognition of Bitcoin as a mainstream asset class. At the time of writing, bitcoin stands at $44,000. That represents a 16% increase over the space of the past week and a 166% increase since the beginning of the year.Photo by Yiğit Ali Atasoy on UnsplashKeiser’s claimAccording to outspoken Bitcoin advocate Max Keiser, Qatar’s sovereign wealth fund (QSWF), responsible for managing the nation’s significant oil and gas-generated wealth, is considering allocating up to $500 billion to the leading cryptocurrency.To provide context, this investment would eclipse the publicly disclosed bitcoin holdings of MicroStrategy, founded by Michael Saylor, by an astonishing 671 times. MicroStrategy currently holds the position of the largest corporate holder of Bitcoin, with 174,530 BTC acquired in November.Keiser speculates that the QSWF’s monumental investment could propel bitcoin’s price to new highs, reaching $100,000. Keiser tweeted:“The God Candle, a $100,000 uptick in #Bitcoin is in play. It will shift the global axis of wealth and power in 1 tick.”Custodia Bank Founder and CEO Caitlin Long shared a similar view on the X social media platform on Wednesday, pointing out that in September the Emir of Qatar had visited El Salvador and met with President Nayib Bukele. The inference is that it would have been an interest in bitcoin that may have provided the motivation for that visit, given that Bukele and El Salvador have adopted bitcoin as a sovereign currency.However, not everyone is on board with this theory. Some have pointed out that the assertion that the QSWF will invest $500 billion into bitcoin is impossible, given that the fund has $475 billion under management.Bitcoin advocate Luke Broyles weighed in on the rumor, emphasizing the crucial interplay between bitcoin’s supply and demand. Broyles highlighted the $76 billion worth of BTC still available on crypto exchanges, underscoring the fundamental principle of bitcoin’s fixed supply. According to Broyles, any substantial investment would inevitably drive prices higher.However, Broyles remains skeptical of the Qatar news, deeming it a rumor, and expressed shock if it proves remotely true. That view has led many back to the original speculation in relation to this most recent price action, the illusive bitcoin spot exchange-traded fund (ETF) approval in the United States.Some activity in recent days has suggested that BlackRock, the world’s largest fund manager, has been doing preparatory work for the launch of its iShares Bitcoin Trust ETF. Not everyone was positive on the topic of Bitcoin on Wednesday, however. Jamie Dimon, the CEO of JPMorgan Chase, testified before the U.S. Congress on Wednesday, stating “If I were the government I’d close [Bitcoin] down.”