Local crypto firms in talks with Hong Kong’s SFC on crypto staking

In a move that will likely further bolster the digital asset landscape in the United Arab Emirates (UAE) and the wider Middle East region, a collaborative venture between Bridgetower Capital and Deus X Capital is launching a digital asset platform in Abu Dhabi. With an initial investment of $250 million, Bridgetower Middle East, as reported by weekly regional business magazine Arabian Business, is poised to play a pivotal role in fostering institutional-grade digital asset infrastructure within the UAE and the broader Middle East and Gulf Cooperation Council (GCC) region. Cory Pugh, Chairman and CEO of Bridgetower, expressed his enthusiasm about the partnership, stating:“Staying true to our roadmap of global expansion and partnering with top companies, it’s a rare privilege to see Deus X and Bridgetower partner to create Bridgetower ME as one jointly owned, Abu Dhabi entity.”Photo by Kevin JD on UnsplashHeadquartered in ADGMHeadquartered in the Abu Dhabi Global Market (ADGM), Bridgetower Middle East aims to serve as the nerve center for digital asset activities, with a footprint extending to Dubai. The company's core mission is to inaugurate and manage an institutional-grade digital asset infrastructure platform, facilitating the rapid evolution of the digital asset business across the UAE and the region. Backed by significant self-funding, Bridgetower ME brings forth a wealth of expertise, with over $250 million of delegated assets earmarked for turnkey staking, coupled with extensive experience in digital asset management and capital deployment, courtesy of Bridgetower and Deus X. “We have tremendous respect for the UAE business culture and regulatory approach to digital asset infrastructure and look forward to investing resources to both incubate and bring new opportunities to the UAE,” remarked Pugh. Through its suite of services, Bridgetower Middle East aims to provide institutional clients with a secure platform for engaging in staking activities, facilitating transactions across major blockchain networks. In 2022 it partnered with Securitize to offer a Staked Digital Asset Security (SDAS) product on the Avalanche blockchain. Last year, it integrated the Lido liquid staking ecosystem within its own platform. Harnessing AI and blockchain capabilitiesFurthermore, Bridgetower ME is poised to elevate the capabilities of blockchain and artificial intelligence (AI) through its advanced AI GPU services tailored for blockchain networks. By leveraging its specialized data center infrastructure, Bridgetower ME seeks to augment computing capabilities for blockchain and AI applications, thus driving innovation within the digital asset ecosystem. In line with its commitment to nurturing the blockchain ecosystem, Bridgetower ME plans to spearhead private equity investments and support the incubation of startups in the UAE. Additionally, the company envisions the launch of a Web3 commerce platform, aimed at seamlessly integrating traditional businesses with digital assets. Through strategic collaborations with global consumer brands, art markets and sports organizations, Bridgetower ME aims to accelerate the adoption of blockchain technology on a global scale. Tim Grant, representing Deus X Capital, expressed his excitement about the collaboration, stating:“We are delighted to have the opportunity to work with Abu Dhabi to incorporate a company that is solely focused on making the country the global leader in digital assets and fintech.” 

It’s been a tough couple of months for global crypto exchange, Bybit. Having had to leave the Malaysian market due to regulatory issues, the firm is now being forced to shutter its service in India for similar reasons.Photo by Naveed Ahmed on UnsplashWithdrawing services on January 12The exchange announced its withdrawal from the Indian market via a statement published to its website on Jan. 10. The service for Indian residents has been ceased from 08:00 UTC on Sunday, Jan. 12.  Account opening and crypto trading has been disabled. Furthermore, the ability to place market orders through other exchange products offered by the company has also been disabled. The ability for customers to withdraw fiat currency and digital assets remains in place. Achieving full complianceWhile the company is leaving the market, it has stated that its services are temporarily suspended in India. It cited a need to “operate in full compliance” as the firm’s primary objective relative to the Indian market. Elaborating on this, it stated:”We have taken this measure while we continue to work closely with the regulator to finalize our registration as a Virtual Digital Asset Service Provider in India, which we expect to secure in the coming weeks.” Malaysian market issueThe situation mirrors a similar set of circumstances that Bybit finds itself in relative to the Malaysian market. On Dec. 27, the Malaysian Securities Commission published a statement outlining details of an enforcement action it had taken against Bybit and the firm’s CEO, Ben Zhou.  In that instance, Bybit was directed to disable its service offering within the Malaysian market. The company indicated that it would return to the market once it had secured the necessary licensing. India hasn’t proven to be the most crypto-friendly jurisdiction to date. Indian crypto influencer R.K. Gupta took to the X social media platform, claiming that the government was at fault for Bybit having to withdraw from the Indian market. He stated: “Our country’s flawed policies are ruining crypto, while others aim for reserve currency status. Govt targeting exchanges, and now Bybit might stop services in India.” In December 2023, India’s Financial Intelligence Unit (FIU) took action to prevent unregistered overseas exchanges from operating within the Indian market. It issued compliance show-cause notices to nine exchanges at the time. Shortly afterwards, Apple India blocked access to these exchanges on the Indian Apple App Store.  While Bybit wasn’t amongst them, it is now being brought into line by Indian regulators. Back in September, it emerged that the FIU was considering requests to allow four offshore cryptocurrency exchanges to resume activity within the Indian market. Having been deemed to have come into compliance, Binance and KuCoin resumed activities in India in August 2024. Aside from Malaysia and India, Bybit has also encountered regulatory difficulties in Europe. Last August, it left the French market due to regulatory problems. In May 2022, the Autorité des Marchés Financiers (AMF), the French financial markets authority, blacklisted Bybit, warning investors that it wasn’t a registered digital asset service provider.  As part of that market withdrawal, Bybit collaborated with partner Coinhouse, a regulated French crypto-asset platform. Accounts holding assets above the value of 10 USDC were transferred to Coinhouse.

Circle Partners with Asian Convenience Store Chain to Push USDC AdoptionCircle, the issuer of US dollar stablecoin USD Coin (USDC), has entered into a strategic partnership with Taiwanese cryptocurrency service provider BitoGroup and Taiwan FamilyMart, the nation’s second-largest convenience store chain.The primary objective of this collaboration, which Circle announced on Thursday through the publication of a statement on its website, is to expand the utility of loyalty points and enhance their intrinsic value, all the while driving the adoption in the use of USDC in Taiwan.Photo by Jiachen Lin on UnsplashFocus on loyalty pointsThe partnership introduces an innovative service known as “Points-to-Crypto,” accessible through the Taiwan FamilyMart App and the BitoPro Exchange. This service empowers customers to seamlessly convert their FamilyMart loyalty points, commonly known as FamiPoints, into digital currencies such as USDC.This conversion not only preserves the value of loyalty points but also incurs no transaction fees, effectively democratizing access to the world of cryptocurrencies. This move aligns with Circle’s overarching strategy to push the boundaries of digital asset innovation.Broader strategyCircle unveiled a broader strategy along these lines in June. The focus has been on collaborations aimed at transforming how consumers and institutions in the Asia Pacific (APAC) region engage with the digital dollar, especially USDC, to facilitate quicker and more efficient financial transactions. In June Circle acquired a full trading license from the Monetary Authority of Singapore (MAS).Last month it emerged Circle has been actively integrating its Web3 Services platform into the well-known Grab platform. Grab is Southeast Asia’s super app for transportation, deliveries, payments, and more. This integration, initially set to debut in Singapore, seeks to elevate user experiences through blockchain-enabled solutions. Grab has 25 million monthly active users in Southeast Asia.Integrating Circle’s Web3 services and bringing them to these customers eventually will mean a direct touch point for Web3 in their daily lives, and the active use of a digital wallet for each and every one of them.This latest development assumes significance in Taiwan due to the country’s high density of convenience stores, where loyalty points hold substantial value. According to the Market Intelligence & Consulting Institute (MIC) in Taiwan, “Points Accumulation and Redemption” ranked as the most practical function among four primary retail app functions in their 2021 consumer behavior survey.Local industry partnersBitoGroup, one of the primary partners in this initiative, boasts a membership base nearing 800,000 and holds a market share of approximately 90% in Taiwan. BitoGroup offers a diverse range of services, including BitoPro, a cryptocurrency exchange; BELS, an NFT empowerment platform; and O2 META, which is a metaverse-focused social media platform.For nearly a decade, Taiwan FamilyMart and BitoGroup have offered customers the ability to purchase Bitcoin at convenience store locations nationwide. This new partnership signifies a shift from physical convenience stores to online experiences, enabling access to innovative financial tools and reinforcing Taiwan’s position as a digital economy leader.This latest partnership marks a significant milestone in bringing Web3 and digital currency into active and mass market use among ordinary people in Taiwan. The development coincides with Taiwan’s legislature and regulators currently working on the introduction of a regulatory framework for digital assets.