Lillius and Crypto.com Team Up for NFT Collaboration and Global Marketing

Major investment entities linked to the Abu Dhabi government increased their exposure to Bitcoin in the third quarter, according to newly released data. These moves came ahead of a broader decline in the digital asset market amid shifting macroeconomic conditions in the U.S.Photo by Kanchanara on UnsplashInstitutional accumulationThe Abu Dhabi Investment Council (ADIC), a subsidiary of Mubadala Investment Company, more than tripled its holdings in BlackRock’s iShares Bitcoin Trust ETF (IBIT) during the third quarter, increasing its position from 2.4 million to nearly 8 million shares, Bloomberg reported. An ADIC spokesperson told Bloomberg that the organization views Bitcoin as “a store of value similar to gold,” and described the allocation as “part of a long-term diversification strategy.” Other UAE-based conglomerates are also maintaining sizable Bitcoin positions. The Royal Group, which is linked to the Abu Dhabi royal family, holds around 6,450 BTC, according to a Crypto Briefing report citing Arkham data. The assets were accumulated through the group’s majority-owned subsidiary, Citadel Mining. Regulatory and infrastructure developmentsThe UAE’s efforts to position digital assets as a driver of economic growth are also reflected in its regulatory framework. A recent Global Digital Assets Report by the Global Finance & Technology Network (GFTN) identified the UAE as one of seven jurisdictions worldwide whose crypto-exchange rules meet all three key standards for AML/CFT compliance: know-your-customer (KYC) and ID verification, suspicious transaction reporting, and implementation of the Financial Action Task Force (FATF) Travel Rule. The report characterized the UAE’s approach as “federated oversight with zone-specific AML regimes.” Responsibilities are divided among the Securities and Commodities Authority (SCA) at the federal level, the Virtual Assets Regulatory Authority (VARA) in Dubai, and the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). In decentralized finance (DeFi), VARA has issued specific rulebooks covering activities such as lending and borrowing. ADGM has introduced DLT Foundations Regulations to provide legal structures for decentralized autonomous organizations (DAOs), while DeFi operations within the jurisdiction still require authorization from the FSRA. In addition to regulatory developments, the UAE is also advancing the practical deployment of digital asset technologies. In the payments sector, Abu Dhabi Airport has signed a memorandum of understanding (MOU) with Al Hail Holding to pilot stablecoin payment options and digital wallets for travelers, according to Cryptopolitan. Bitcoin declining below $87KThe buildup in institutional exposure has occurred against a backdrop of declining market prices. Bitcoin (BTC) reached a peak of $126,080.00 on Oct. 6 before dropping to roughly $87,000 as of Nov. 21, its lowest level since April 21. Technical indicators show that Bitcoin has fallen below both its 50-day and 200-day moving averages. IBIT has followed a similar trajectory. After closing the third quarter at $65 per share, the ETF rose to $71 on Oct. 6 before falling to $48.96 by Nov. 20. Two days before that, the fund recorded a net outflow of $513.47 million, the largest in its history, according to data from Trader T. Reuters reported that the recent weakness in Bitcoin and other risk assets is tied to the U.S. Federal Reserve’s cautious stance on rate cuts amid persistent inflation pressures. That concern was reinforced on Nov. 20 when the U.S. Bureau of Labor Statistics released September nonfarm payrolls data that had been delayed by the federal government shutdown, showing a figure of 119,000 against the market forecast of 53,000. The stronger-than-expected labor reading has reduced expectations for a rate cut next month, adding pressure to both equities and Bitcoin. 

The CEO of Japanese hotel operator turned Bitcoin treasury company, Metaplanet, has suggested that the firm may consider acquiring a digital bank in the future. Simon Gerovich, the firm’s CEO and a former Goldman Sachs banker, told the Financial Times that part of the second stage of its overall strategy may involve “acquiring a digital bank in Japan and providing digital banking services that are superior to the services which retail now is getting.”Photo by Kanchanara on UnsplashBitcoin gold rushGerovich explained that phase one of Metaplanet’s plan involves participating in what he considers to be “a bitcoin gold rush.” He added: “We need to accumulate as much bitcoin as we can . . . to get to a point where we’ve reached escape velocity and it just makes it very difficult for others to catch up.” Other firms are jumping on the bandwagon, as within a very short timeframe, 140 companies around the world have adopted a Bitcoin treasury strategy. Metaplanet currently weighs in as the fifth-largest corporate holder of Bitcoin globally. Right now, the company holds 15,555 BTC. Its target is a holding of 210,000 BTC, which equates to around 1% of the total Bitcoin supply. Based on current pricing, such a holding would be worth in the region of $23 billion. Acquiring cash-generating businessesOnce the company has accomplished its Bitcoin accumulation goals, it plans to move on to phase two, acquiring cash-generating businesses while leveraging its Bitcoin holdings in order to do so. Using Bitcoin as collateral, Gerovich said that Metaplanet will “get cash that we can use to buy profitable businesses.”  While inroads are being made with regard to the acceptance of Bitcoin as a corporate reserve asset, it is earlier days still for its acceptance as collateral. Last month, the Federal Housing Finance Agency (FHFA) in the United States, ordered Fannie Mae and Freddie Mac, key government-sponsored players in the American mortgage market, to explore the treatment of Bitcoin as eligible collateral for mortgages. Standard Chartered and crypto exchange OKX launched a pilot program earlier this year geared towards the use of crypto for collateral purposes. Gerovich talks in terms of Metaplanet’s phase two plan playing out at a time “when bitcoin, like securities or government bonds, can be deposited with banks and then they’ll provide very attractive financing against that asset.” The Metaplanet CEO stated that he expects the Bitcoin accumulation phase of the plan to play out over a period of between four and six years. The Tokyo-listed firm started accumulating Bitcoin in 2024. Some market participants are backing Metaplanet’s strategy with their own money. Global investment management firm Capital Group recently became Metaplanet’s second-largest investor. Bitcoin treasury criticsHowever, the emergence of Bitcoin treasury firms has also drawn quite a few detractors. Some critics point out that many of these companies have a negative operating income. Market analyst Caleb Franzen asserted that even after buying Bitcoin, they’re still junk companies. Others point out that too many firms have jumped on the Bitcoin treasury bandwagon, making the prospect no longer attractive. Fakhul Miah, managing director of GoMining Institutional, is also concerned about copycats. He told Cointelegraph that ”if these smaller firms crash, we could see a ripple effect that hurts Bitcoin’s image.”

The Enforcement Directorate (ED) — an Indian law enforcement agency — seized 90 crores ($10.5 million) from an online scam app called E-Nuggets with the help of global crypto exchange Binance.  ED is the governmental law enforcement agency responsible for enforcing economic laws and with that, tackling economic crime. According to a report published by Indian English language daily newspaper The Hindu, the online gaming app E-Nugget had cryptocurrencies worth $10 million stored in 70 different crypto wallet accounts spread across the three crypto exchanges.  Local Indian exchanges ZebPay and WazirX also aided the ED in its investigations and subsequent actions. The ED contacted these exchanges to block the wallet addresses and transfer the crypto assets to the agency’s wallet. Photo by Naveed Ahmed on UnsplashCrypto assets seizedThe ED, tasked with upholding such financial crimes, spearheaded the operation against E-Nuggets, an online gaming platform masquerading as a legitimate investment opportunity. Taking to the X social media platform on April 30, the Indian law enforcement agency stated: “ED, Kolkata led a successful operation against a major “online gaming app scam” known as “E-Nugget”. The E-Nugget app, masqueraded as a gaming platform, promised users high returns on their investments. Crypto assets which were taken into possession of ED are transferred into Crypto Wallet of ED.” 70 wallets implicatedWith cryptocurrencies valued at $10 million spread across 70 different wallet accounts on three crypto exchanges, the agency swiftly took action. E-Nuggets enticed unsuspecting investors with promises of substantial returns through its purported gaming interface. However, once investments were made, the platform vanished into thin air, leaving users unable to recoup their funds. The ED's investigation revealed a complex web of deceit, with the agency seizing properties totaling over 163 crores ($19.5 million), comprising cash, cryptocurrency holdings, account balances and office spaces. The scam involved the funneling of funds into digital assets through 2,500 dummy bank accounts, resulting in the discovery of 19 crores ($2.2 million) in cash. A first information report (FIR) filed at the Park Street Police Station in Kolkata, became the catalyst that triggered the ED case that was subsequently registered under the provisions of India’s Prevention of Money Laundering Act (PMLA). Masterminded by Aamir Khan, who was apprehended alongside accomplice Romen Agarwal, the scheme operated under the guise of digital transactions, which, ironically, facilitated its unraveling. Law enforcement agencies adeptly traced, froze and seized the illicit funds as they moved through the digital realm. Public ledger upends scammersCritics often point to the potential for cryptocurrency to facilitate money laundering. However, the inherent transparency of blockchain technology presents significant obstacles to such illicit activities. Notably, in the infamous 2016 Bitfinex hack, where hackers absconded with 119,756 Bitcoin, the culprits were eventually apprehended in 2022 while attempting to launder the stolen funds. The collaborative efforts between Binance, the ED, and local exchanges points to a developing commitment towards combating financial fraud within the cryptocurrency space. This wasn’t the first occasion in which Binance had cooperated with law enforcement on such matters. In October of last year, the company got with the Thai authorities to assist them in crushing a crypto-related scam. By leveraging blockchain's transparency and international cooperation, authorities can effectively dismantle illicit schemes, safeguarding investors and upholding the integrity of the digital asset ecosystem.