Gemini Announces Singapore Expansion Plans

Binance and Gulf Energy launch digital asset exchange in ThailandThe world’s largest cryptocurrency exchange, Binance, has teamed up with Gulf Energy Development, a leading energy company in Thailand, to operate a digital asset exchange in the country.Photo by Than Diep on UnsplashInvitation-only launchThe new platform, Binance.th, aims to capture the growing demand for crypto services in Southeast Asia. Binance.th, which is currently in its beta testing phase, is expected to open to the public in early 2024. A filing on Wednesday by Gulf to the Thai stock exchange demonstrates that the platform has received approval from the Thai Securities and Exchange Commission to offer exchange and brokerage services for cryptocurrencies and digital tokens. The filing states:“Gulf Binance’s digital asset platform will provide digital asset exchange and digital asset broker services for both cryptocurrencies and digital tokens, prioritizing security and compliance with SEC regulations.”The platform is initially available by invitation only, and the plan is to eventually open the exchange to the general public. It’s understood that the platform will strive to provide a “globally standardized” service that will enhance the level of service in Thailand and promote the development of the country’s blockchain ecosystem.Market opportunityBinance.th enters the Thai crypto market at a time when the local leader, Bitkub, holds a dominant share of 75.4%. Bitkub benefited from the global crypto market downturn in 2022, which affected its competitors such as FTX and Zipmex.Although it has extended market share during the downturn and as a consequence of the demise of other platforms, Bitkub has also struggled with market conditions. In July its parent company Bitkub Capital Group, reduced headcount by six percent. Bitkub recorded $28.6 billion in trading volume last year, out of the total $37.94 billion generated by the top four Thai exchanges.Binance.th hopes to challenge Bitkub’s position by leveraging Binance’s global reputation and expertise in the crypto industry.Legal woesThe launch of Binance.th comes amid Binance’s legal and regulatory troubles in the U.S. and Europe. In September, the U.S. Securities and Exchange Commission (SEC) sued Binance, its U.S. subsidiary, and its founder Changpeng Zhao (CZ) for allegedly listing unregistered securities in the form of cryptocurrencies.In June, the SEC also accused CZ and Binance of illegally marketing its international platform to U.S. customers.Binance has been trying to improve its compliance and governance standards in response to regulatory scrutiny. The company has hired former regulators and executives from the traditional finance sector to lead its operations in various regions. Binance has also applied for licenses and registrations in several jurisdictions, such as the U.K., Singapore and Japan.The origins of this deal stem from a memorandum of understanding (MOU) signed between Binance and Gulf Energy in January 2022. The joint venture business which emerged acquired a digital operator license in Thailand in May of this year.By expanding its presence in Southeast Asia, Binance hopes to tap into the potential of the emerging crypto markets and diversify its revenue streams. Binance.th also marks the first bank-backed crypto exchange in Thailand, as Gulf Energy Development is partly owned by the state-owned Krung Thai Bank.

The United Arab Emirates (UAE) is updating its tax policy such that cryptocurrency-related transfers and conversions will be exempt from value-added tax (VAT).  News of the policy change emerged via the UAE’s Federal Tax Authority (FTA), which published an Arabic version of the updated tax code on Oct. 2, followed by the publication of an English version on Oct. 4.Photo by Darcey Beau on UnsplashExemption backdated to 2018British multinational consulting firm PricewaterhouseCoopers (PwC) published a review of the UAE tax code update on Oct. 4. The auditing firm noted that virtual assets are defined within the UAE tax code as a “representation of value that can be digitally traded or converted and can be used for investment purposes.”It noted that Article 42 of the update dealt with the crypto VAT exemption. The firm suggested that entities dealing with crypto should “analyze the impact of the exemption on their (retrospective) VAT position, especially in respect to their input tax recovery,” adding that voluntary disclosures may be required to correct previous tax returns. Additionally, a VAT exemption has been introduced on services extended to fund managers relative to licensed funds. Younis Haji Al Khoori, a UAE Ministry of Finance official, stated that the amendments have been made with a view towards easing the burden on businesses. He stated:“These amendments help minimise misunderstandings, simplify procedures, and ultimately contribute to an improved quality of life for all.”  Crypto-friendlyAbdulla Al Dhaheri, CEO of the Blockchain Center in Abu Dhabi, commented on the development on X, stating:”The UAE, driven by visionary leadership, continues to set the global standard by becoming the number 1 destination for blockchain innovation. With the elimination of VAT on crypto transfers and conversions, the UAE reinforce their commitment to building a world-leading digital economy, attracting the best talent and investment from around the globe.” The UAE, and particularly Dubai and Abu Dhabi, have taken great strides forward in ensuring regulatory clarity for the virtual assets sector over the course of the past two years. Regulatory frameworks have been put in place, leading to many participants in the crypto sector praising the regulatory stance taken within the UAE.  This latest addition has equally being welcomed within the crypto sector. Many crypto sector participants have highlighted it as a wake-up call for other jurisdictions to follow suit or see crypto enterprises move to the UAE.  The Indian authorities, in particular, have an unfavorable tax policy in place relative to digital assets, with a 1% tax deducted at source (TDS) being applied. This latest development in the UAE prompted some to consider if India would learn from the UAE’s example. Earlier this year, the Indonesian tax framework, which subjects crypto assets to both income tax and VAT, was cited as the main reason for a slump in crypto trading. A recently published report by blockchain data platform Chainalysis found that the Middle East & North Africa (MENA) region accounts for 7.5% of crypto trading volume, with the report noting that the UAE, alongside Saudi Arabia, is showing a strong interest in decentralized platforms.

Abu Dhabi’s ADGM unveils DLT foundations regulationsThe Registration Authority (RA) of Abu Dhabi Global Market (ADGM) has officially unveiled the Distributed Ledger Technology (DLT) Foundations Regulations 2023, marking yet another milestone in the evolution of digital assets regulatory frameworks both regionally and internationally.Photo by Kamil Rogalinski on UnsplashFramework for DAOs and foundationsThe new regulations were published to the ADGM website on Wednesday, with enactment occurring on Thursday. This legislative framework has been crafted to offer a comprehensive structure for DLT foundations and decentralized autonomous organizations (DAOs), addressing their unique operational needs within the blockchain sector. ADGM’s strategic vision to promote initiatives in the broader blockchain and digital asset sphere has culminated in the creation of this regulatory regime.As a global first of its kind, the DLT foundations regulation sets a precedent for blockchain foundations, Web3 entities, DAOs and traditional foundations seeking to enhance their operations through DLT. This forward-thinking framework is poised to provide a unified solution for digital asset-related activities and the broader foundations landscape, fostering transparency and efficiency.Establishing governance structuresThe ADGM DLT foundations regulation represents an effective means to establish governance structures while acknowledging the imperative decentralization characteristic of the industry. This regulatory development followed a robust public consultation process, actively involving stakeholders and industry participants to gather feedback and refine the regulations.In the realm of digital assets, ADGM continues to push towards taking leadership in regulatory standards, providing an attractive environment for Web3 startups. Ahmed Jasim Al Zaabi, Chairman of ADGM, emphasized the pivotal role that the DLT Foundations Regime plays in shaping the future of digital asset development. According to a press release on PR Newswire, Al Zaabi stated:“Abu Dhabi is rapidly emerging as the destination of choice for global players at the forefront of digital asset development. The introduction of the DLT Foundations Regime marks a revolutionary step forward, reinforcing ADGM’s commitment to a proactive approach rooted in extensive cross-industry dialogue and collaboration with various stakeholders. The new regime serves as a driving force for positive change in the digital assets sector. By transforming the blockchain and Web3 landscape, we are moving towards a future characterised by setting global benchmarks with enhanced transparency and efficiency.”Nurturing Web3 innovationOver the course of the past 12 months, the authorities in Abu Dhabi, alongside the United Arab Emirates (UAE) itself and other emirates such as Dubai, have been allocating resources towards developing the right conditions for the Web3 sector to flourish. In April of this year, a legislative framework was proposed by the ADGM.Recent months have seen a plethora of digital asset sector firms gain trading approval within the emirate. These included virtual asset firm M2, Standard Chartered digital asset subsidiary firm Zodia Markets and Laser Digital, the digital assets subsidiary of Japanese financial services conglomerate Nomura.By way of its DLT foundations regulations, the ADGM is attempting to go beyond simply creating a set of rules. The aspiration is to strive towards a future where the blockchain and digital asset industry operates within a transparent, efficient and globally respected framework. As blockchain technology continues to gain traction, Abu Dhabi’s ADGM is positioning itself to play a role in driving these advancements.