MiCA may force crypto firms into Middle East relocation

Former FTX COO Finds New Role at Sino GlobalConstance Wang, previously known for her executive roles at FTX, has recently joined crypto venture capital firm Sino Global Capital.That’s according to sources Bloomberg cited in a recent report as being familiar with the matter. Wang held the role of Chief Operating Officer at FTX and was also the Co-Chief Executive Officer of FTX Digital Markets, the affiliate of the now-defunct crypto exchange, which was based in the Bahamas. Her responsibilities at FTX included overseeing global business expansion, token listings, and public relations and marketing.Following the collapse of FTX and its sister trading firm Alameda Research, Wang has reportedly spent a significant amount of time in China, according to an undisclosed source.Sino Global Capital, founded in 2015 by Beijing-based American investor Matthew Graham, had revealed its early investment in FTX after the exchange’s collapse. The management team stems from a background in consulting, Wall Street, private equity, government, and corporate spheres. A year prior, the venture capital firm launched a $200 million fund with FTX as a key investor. Sam Bankman-Fried, the Founder of FTX, expressed gratitude for Sino Global’s support, stating that they believed in the FTX vision from the beginning and assisted in making it a reality.Photo by Henry Kobutra on UnsplashLawsuitGraham was quite public in his support of FTX and Sam Bankman-Fried. He appeared frequently on podcasts, always explaining that the FTX founder was a genius. On investing in FTX and in projects in general, Graham stated repeatedly that Sino Global maintained a high level of due diligence. Most of the leading venture capital investors in FTX (including Sino Global) have been subject to class action lawsuits filed by creditors. It’s claimed that many of these investors didn’t simply invest capital but also got involved in actively marketing what turned out to be a fraud.In January, the court-appointed management team overseeing the FTX bankruptcy proceedings sought permission to subpoena Wang and other former executives of the company. Court filings indicate that Wang has not been accused of any wrongdoing in relation to the collapse of FTX or Alameda.Prior to her tenure at FTX, Wang briefly worked at the crypto exchange Huobi in Singapore as a Business Development Manager. She also spent two years as an analyst at Credit Suisse.New rolesIn recent months, other former FTX employees have also reappeared in new roles. Amy Wu, who left Lightspeed Venture Partners to lead FTX Ventures, announced her joining Menlo Ventures, one of the oldest venture firms in Silicon Valley. Brett Harrison, former President of FTX US until his sudden resignation in September 2022, has founded a startup with plans to provide a “GPT-4-powered trading algorithm code generator.”The transition of Constance Wang and her fellow FTX alumni into new positions at face value seems like a logical progression. However, all of the FTX c-suite executives remain under ongoing scrutiny. Having brought charges against Bankman-Fried, Caroline Ellison, and Nishad Singh some months ago, Southern District of New York (SDNY) Attorney Damian Williams stated clearly that more arrests would follow.

It’s proving to be a significant week for the further development of stablecoins in the United Arab Emirates (UAE) with leading U.S. dollar-backed stablecoin issuer Circle achieving in-principle licensing approval in Abu Dhabi, while a group of Abu Dhabi-based institutions have announced plans to launch a UAE dirham-pegged stablecoin.Photo by Yan Ma on UnsplashRegulatory licensingIn a press release published on April 29 Circle outlined that it had received in-principle approval to operate as a money services provider from the Financial Services Regulatory Authority (FSRA), the regulator for projects operating out of the Abu Dhabi Global Market (ADGM). ADGM is a free zone located within the UAE capital that has established its own regulatory framework for virtual asset-based businesses. The in-principle licensing award puts the company on a firm path towards the acquisition of a full Financial Services Permission (FSP) license. Circle Co-Founder Jeremy Allaire said that this in-principle licensing “advances our strategy to establish deep roots in markets embracing the onchain economy, creating new pathways for investment and innovation in the region.” On X, Ian Ballina, founder and CEO of Token Metrics, said that the licensing milestone signaled more global momentum for crypto adoption. Ballina pointed out that Circle’s USDC stablecoin is gaining traction as a result of the company’s strategy of partnering with local tech innovators. In addition, Circle announced a collaboration with Hub71, an Abu Dhabi-based global tech ecosystem. The objective of the partnership is to strengthen innovation within the digital assets space, with Circle joining Hub71’s digital assets ecosystem to offer expertise to a community of more than 500 tech startups and venture capital firms. Dirham stablecoin launchIn a separate development, ADQ, an Abu Dhabi-headquartered sovereign wealth fund, announced that it had joined with local partners to launch a UAE dirham-pegged stablecoin.  In its efforts to launch the stablecoin, ADQ has partnered with First Abu Dhabi Bank (FAB), the UAE’s largest bank, and conglomerate International Holding Company (IHC). The trio envisage that the stablecoin will be regulated by the UAE’s central bank and will be used “by citizens and consumers, businesses and institutions.” Once regulatory approval has been granted, the stablecoin will be hosted on the ADI blockchain, a network which was established by the Abu Dhabi-based non-profit ADI Foundation. ADQ CEO H.E. Mohamed Hassan Alsuwaidi described the launch of the stablecoin as “a pivotal step in our commitment to strengthening the UAE’s digital infrastructure ecosystem.” He added that the stablecoin will provide a secure, efficient and scalable solution for market participants as the UAE progresses towards an increasingly digital and connected economy. FAB CEO Hana Al Rostamani suggested that the new stablecoin would make a significant impact, with the potential to “revolutionize the use of trusted blockchain payments for UAE consumers and businesses.” Last December, the FSRA approved leading U.S. dollar stablecoin Tether (USDT) as an accepted virtual asset (AVA). Some weeks prior to that approval, Tether outlined that it planned to launch a dirham-backed stablecoin in collaboration with local partners. In October the country’s central bank issued in-principle approval to the promoters of another dirham-backed stablecoin, AE Coin.

Tiger Brokers (Hong Kong) is gearing up to bring its virtual asset trading platform to professional investors in Hong Kong, with plans to extend the service to retail-level investors in the short to medium term. Unified solution for equities and digital assetsTiger Brokers is an online broker, headquartered in Beijing, with an office and operations in Hong Kong. Additionally, the company has been listed (TIGR) on the Nasdaq stock exchange in the United States since 2019. With this latest plan which it outlined in an announcement shared with Cointelegraph, the company will offer professional investors a single solution for the trading and portfolio management of both securities and digital assets.  In merging traditional securities and crypto assets, the firm has partnered with Hong Kong’s HashKey Exchange, allowing access to 18 digital assets. That offering will include Bitcoin and Ethereum. Alongside these digital assets, the company will offer investors traditional financial products such as equities, options, futures and U.S. Treasury bonds. Integrating traditional and digital assets within the one platform eliminates certain complexities that come with managing multiple accounts across distinct brokers and platforms. As a consequence, investors are being extended greater convenience and flexibility in terms of global asset allocation.Photo by Ansel Lee on PexelsExtending service to retailInvestors with a preference for exposure to the recently approved spot Bitcoin exchange-traded fund (ETF) products will be enabled to purchase those ETFs through the platform.  Tiger will become the first technology-led brokerage in Hong Kong to offer an all-encompassing service supporting both traditional securities and virtual assets. The firm has incorporated competitive rates and a 24/7 trading ability into the offering in an effort to gain traction. Additionally, it has waived digital asset custody fees.  Through the Tiger Trade platform, professional investors will be given access to this array of investment options. Initially, availability of the facility will be confined to professional investors in Hong Kong. Hong Kong residents with an investment portfolio valued above 8 million Hong Kong dollars ($1 million) and corporate entities with assets in excess of 40 million Hong Kong dollars ($5 million) qualify within the definition of accredited investors. Once it gains the relevant regulatory approval, Tiger Brokers intends to extend the service to retail investors. The company also outlined that it is considering adding cryptocurrency spot withdrawals and deposits as features within the new service offering. Zeng Qingfei, Chief Financial Officer of Tiger International, expressed the company's pride in leading the charge in virtual asset trading services. He emphasized Tiger Brokers' commitment to meeting the evolving needs of investors by expanding its product portfolio to include diversified investment opportunities. Through this strategic expansion, the company is aiming to equip investors with the tools they need to navigate dynamic market conditions effectively. The company hasn’t confined its efforts to achieve further growth to Hong Kong. In recent days, it has also enabled 24-hour trading of U.S. stocks and exchange-traded funds (ETFs) in New Zealand. Through extended trading hours, Kiwi investors will have greater opportunity than ever to participate in the market.