B. Riley Financial Agrees Strategic Bitdeer Share Purchase

Dubai Tempts AI and Web3 Enterprises With Subsidized Commercial LicensesDubai has demonstrated over the past twelve months that it has its sights set on becoming a regional hub for innovation, and we have further evidence of that strategy today with news that the city is now enticing artificial intelligence (AI) and Web3 businesses with an unprecedented offer — commercial licenses at a 90% subsidy.Photo by Aleksandar Pasaric on PexelsAI and Web 3.0 CampusThe focal point of this strategic move is the Dubai AI and Web 3.0 Campus, a burgeoning tech haven designed to foster innovation and collaboration. The campus recently unveiled its decision to heavily subsidize licenses for companies choosing to establish a foothold within the city, publishing details of the move on Monday via a press release. The issuance of these licenses falls under the auspices of the Dubai International Financial Centre (DIFC), underscoring the city’s determination to attract global talent and diverse investment opportunities.Mohammad Alblooshi, CEO of DIFC’s Innovation Hub, expressed confidence in the power of this initiative, stating:“We are confident that by granting these licenses, we will attract more global talent and investment to the region and create a culture of collaboration and innovation.”The Dubai AI and Web 3.0 Campus is geared up to cater to its prospective denizens, equipped with cutting-edge AI lab facilities, comprehensive training programs, essential hardware support, and accelerator initiatives.All enterprises setting their sights on seizing the opportunity presented by the 90% subsidized commercial licenses are required to follow an application process.Crypto trading licensingDubai’s tech evolution extends beyond AI and Web3 realms. The city has been proactive in granting operational licenses to cryptocurrency exchanges, marking yet another stride toward its tech-driven future.In a recent development, Nomura’s crypto arm, Laser Digital Middle East, secured an operational license from Dubai’s Virtual Asset Regulatory Authority (VARA). This coveted license empowers Laser Digital to provide broker-dealer services and manage virtual asset investments within the emirate.The progressive regulatory approach taken in Dubai has led to crypto exchanges such as Bybit, choosing the city as the location for its headquarters. In June MENA-focused digital assets platform BitOasis became the first crypto company to be awarded a broker dealer license by the Dubai regulator.The regulatory approach taken in Dubai is proving to be progressive yet firm. The emirate hasn’t made the mistake of opting for ineffective light touch regulation that would attract the wrong type of crypto startup.That’s evidenced by the response of VARA to the establishment of the OPNX exchange within its jurisdiction. OPNX was founded by Su Zhu and Kyle Davies, the founders of failed Singapore-based crypto hedge fund, Three Arrows Capital (3AC). VARA issued the business’ founders with a reprimand earlier this year, for establishing a crypto-related platform in Dubai without having obtained a crypto trading license.Dubai’s willingness to embrace innovative technologies, coupled with its strategic initiatives and progressive regulation, is propelling it to the forefront of the global tech revolution. As it beckons AI and Web3 pioneers with enticing subsidized licenses and facilitates the growth of the cryptocurrency ecosystem, Dubai is carving a unique niche as a hub of technology and innovation and exploiting the potential growth opportunity that presents as a consequence.

Chainlink, a prominent decentralized oracle network, has partnered with the Abu Dhabi Global Market (ADGM), a free zone and international financial center located on Al Maryah Island in Abu Dhabi in the United Arab Emirates (UAE), with a view towards further developing tokenization frameworks.Photo by Shubham Dhage on UnsplashCompliant tokenization frameworksAccording to an announcement on the ADGM website, the international financial center signed a memorandum of understanding (MOU) with Chainlink. It claimed that the collaboration marks “a major step in advancing compliant tokenisation frameworks.” Chainlink provides a suite of services. Central to that is the delivery of real-world data feeds into blockchain networks. ADGM believes that through the partnership, projects located within the free zone will be able to access this technology, while the ADGM’s Registration Authority will ensure regulatory compliance. The CEO of the ADGM Registration Authority, Hamad Sayah Al Mazrouei, said that the strategic alliance is a significant step towards ADGM leadership in blockchain innovation. He added: “By collaborating with Chainlink, we are aiming to set a global benchmark that spearheads transparency, security, and trust across the blockchain space.” The collaboration includes plans to host events and workshops aimed at educating the blockchain sector within the UAE. The two parties also aspire to the initiative, sparking greater dialogue on regulatory matters relative to blockchain, artificial intelligence and other emerging technologies. Global collaborationsThis is the latest in a long list of collaborations that Chainlink has entered into, relative to asset tokenization. In October, it partnered with Singapore’s DigiFT, an exchange dedicated to tokenized real-world assets (RWAs). The following month, it completed a pilot program alongside financial messaging service SWIFT and UBS Asset Management under the umbrella of the Monetary Authority of Singapore’s (MAS) Project Guardian. The project concerned itself with the settlement of tokenized funds. Earlier in 2024, Chainlink partnered with U.S. financial market infrastructure firm DTCC on the Smart NAV pilot project. The initiative centered on the creation and issuance of tokenized funds, counting JPMorgan, State Street, BNY Mellon, Invesco and Franklin Templeton among its participants. In the UAE, Chainlink has been added as a member of the Digital Asset Lab of one of the country’s largest banking groups, Emirates NBD. For its part, the ADGM has also been on the front foot with regard to tokenization initiatives. Its Regulatory Authority has established a regulatory framework with regard to asset tokenization, with an emphasis on investor protection. In October of last year, RWA tokenization platform Realize launched the financial center’s first tokenized U.S. treasury bill fund. At the time, the ADGM said that the development highlighted an objective for the region in becoming the global market leader where RWA tokenization is concerned. The ADGM began operations in 2015 with its own legal system. As of the end of 2024, the financial center hosted 134 fund and asset managers. Market maker and Web3 investment firm DWF Labs moved its headquarters from Singapore to Abu Dhabi’s ADGM at the end of last year, citing the goal of wanting to expand tokenized RWA-based projects as one of the reasons for the move.

The Chinese autonomous territory of Hong Kong is moving closer towards the issuance of stablecoin licenses, while 30 kilometers away on the Chinese mainland, the authorities in Shenzhen are warning against stablecoin investment scams. Hong Kong has set Aug. 1 as the effective date for its incoming Stablecoin Ordinance. Firms such as JD.com and Ant Group, an affiliate company of Alibaba Group, are understood to be interested in seeking licensing. Photo by ダモ リ on UnsplashSingle-digit license issuanceIn a recent interview with Chinese language newspaper Ming Pao, Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, outlined that stablecoin licenses are likely to be issued in 2025 following the passing of the Aug. 1 effective date, although he indicated that the number of licenses issued will remain in single digits. Hui hopes that stablecoins can address some of “the difficulties and pain points in the real economy,” like cross-border payments involving volatile local currencies. The official said that stablecoins can reduce transaction costs and facilitate cross-border transactions when based on fiat currencies and serving as effective payment tools. Yuan-based stablecoinsHui stated that the issuance of a stablecoin in Hong Kong which is based on the sovereign currency of another jurisdiction would only be permitted following “discussions with the relevant authorities."  It’s understood that the aforementioned Chinese e-commerce firms have been lobbying government for the approval of offshore yuan-based stablecoins. Last month, the Governor of the People’s Bank of China, Pan Gongsheng, acknowledged that stablecoins are disrupting global payments infrastructure. However, mainland China still has a mining and trading ban in place in relation to crypto, despite previous speculation that the country would open up to crypto. Hui expressed the view that where a stablecoin implicates another sovereign currency, there are additional risk factors that would have to be taken into account. Exploiting uninformed view of stablecoinsMeanwhile, 30 kilometers from Hong Kong, the authorities in Shenzhen have issued a warning to members of the public highlighting that scammers are exploiting the public’s uninformed view of stablecoins as a guise through which to lure victims into investment scams. They asserted that scammers are using new concepts, in this case stablecoins, for hype in an effort to peddle illegal fundraising, gambling, fraud and money laundering schemes.The Shenzhen Municipal Task Force Office for Preventing and Combating Illegal Financial Activities asked the public to report such schemes “engaged in illegal fundraising in the name of investing in stablecoins,” in order to enable the authorities to crack down on the illicit activity. The authorities added: "We urge the general public to remain rational in their investment decisions, avoid blindly trusting extravagant promises, develop a correct understanding of money and investment, stay alert to financial risks and avoid falling victim to scams." Last month, JD.com took to Weibo to warn the public that fraudulent JD stablecoins were being offered by scammers at a time when the company has yet to issue a stablecoin.