Dubai regulator tightens crypto marketing rules

The Qatar Financial Centre (QFC), a business and financial center located in the Qatari capital, Doha, has announced that the Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA) have launched the QFC digital assets framework. In a press release published to the QFC website on Sept. 1, the project set out details of its QFC Digital Assets Framework 2024.Photo by 拜耳 闫 on UnsplashIndependent economic zoneThe QFCA and the QFCRA both act in a regulatory capacity relative to the financial center. The QFC is an economic zone, which operates independently from the rest of the country. With that, it has its own legal, tax, regulatory and business framework. The initiative is similar in this respect to projects located within its Middle Eastern neighbors, the United Arab Emirates (UAE), such as RAK DAO in Ras al Khaimah and Abu Dhabi’s international financial center, the Abu Dhabi Global Market (ADGM). The QFC incentivizes international startups to base themselves within the economic zone by allowing full foreign ownership and 100% repatriation of any profits made by the established entity, with a low rate of 10% taxation applied to those profits. In its press release, the QFC claimed that the framework establishes the legal and regulatory foundation for digital assets, including the process of tokenization, legal recognition of property rights in tokens and their underlying assets, custody arrangements, transfer and exchange.  Providing for a transparent ecosystemAdditionally, the framework provides for the legal recognition of smart contracts. The QFC claims that the framework will ensure a “secure and transparent digital asset ecosystem,” in accordance with international standards and best practices.  The financial center established its Digital Assets Lab in October 2023. Since then, it has welcomed in more than 20 startups, with those entities at various stages in terms of developing, testing and commercializing their products and services. The project outlined that the digital assets framework was developed simultaneously, alongside the operation of the QFC Digital Assets Lab, with industry engagement and collaboration arising as a consequence, having played a role in the framework’s development. His Excellency, Sheikh Bandar bin Mohammed bin Saoud Al Thani, the Qatari Central Bank governor, commented on the development, stating: “Launching the 2024 Digital Assets Regulations marks a significant milestone in our journey towards realising the Third Financial Sector Strategy.” The central bank governor added that the project was aligned with Qatar’s endeavor to achieve specific digital transformation goals. Sovereign wealth fund rumorsRumors had emerged in December 2023 that Qatar’s sovereign wealth fund was driving a Bitcoin price surge. While those rumors weren’t substantiated subsequently, this latest development has once again led to some market commentators considering the prospect of one of the world’s largest sovereign wealth funds investing in Bitcoin. Pseudonymous crypto influencer “MartyParty,” who has over 110,000 followers on X, commented on the development, adding that “[The Qatar Investment Authority (QIA) has] been very interested in #Bitcoin and other digital assets and are huge investors in technology.” Back in 2021, QIA CEO Mansoor Bin Ebrahim Al Mahmoud stated at the Qatar Economic Forum that crypto needed to mature before the $500 billion wealth fund would establish a view about investing in the space.

Binance Introduces Dedicated Trading Platform in JapanGlobal cryptocurrency exchange Binance made an announcement on Friday regarding its plans to establish a new trading platform exclusively for residents of Japan.The move is in compliance with Japanese laws and regulations, and a demonstration of the company coming into line with Japan’s legal and regulatory framework relative to crypto assets and crypto asset trading. While specific details such as the platform’s launch date are yet to be disclosed, Binance has assured its Japanese customers that this information will be provided in the near future.Photo by Bagus Pangestu on PexelsPlatform transitionIn terms of scheduling, we do know that a new know your customer (KYC) verification process will be available after August 1, to migrate to the new local platform for existing Japanese users on the global platform. As part of the transition process, Binance will be sending out information to Japanese residents who currently utilize their global trading platform. This communication will include instructions on procedures including further information on identity verification.To facilitate a smooth transition, Binance’s global trading platform will cease providing services to Japanese residents on November 30, 2023. Additionally, there are plans to change the company name from Sakura Exchange Bitcoin to “Binance Japan Co., Ltd.”This development marks Binance’s initial foray into the Japanese market firmly under its own brand. In November 2022, the company entered the country by acquiring Sakura Exchange Bitcoin (SEBC). The forthcoming trading platform, dedicated exclusively to domestic residents, represents the first step in Binance’s strategic approach to the Japanese market.The new services on the platform are set to launch during the summer, with future expansion plans to broaden that offering further. Binance also intends to introduce initiatives in Japan that leverage its ecosystem, including the provision of free educational resources through “Binance Academy” to promote Web3 education.Service offeringThe newly created entity will offer crypto spot trading with fiat deposit and withdrawal facility to its Japanese customers. Crypto lending products will be provided through a digital asset earn program. For those who like to dollar cost average (DCA), an automated recurring purchase feature will be provided.In 2021, Binance introduced an NFT marketplace and that will be a service that it will also extend to its Japanese customers. Upon launch of the dedicated service, crypto derivative trading will not be offered although it is understood that it may be offered at a later stage. Derivatives are likely to be under much closer scrutiny by the Japanese regulator than Binance’s other products.It is worth noting that Binance had previously received a warning from the Financial Services Agency (FSA) for offering cryptocurrency trading services to Japanese residents without proper registration. With its full-fledged entry into the Japanese market, it remains to be seen what impact this move will have. Will it accelerate the regulatory landscape and the adoption of Web3 technology in Japan from a global perspective?Additionally, how smoothly will Binance be able to acquire new accounts while competing with domestic business operators? These developments warrant close attention as they unfold.

The official token pre-sale for Bit of Mind – a project operated by Singapore-based DAO company investor K Stadium to launch a Web3-based AI mental health platform – sold out in nine hours on K Stadium's LaunchPad on Tuesday (KST), according to an official press release on K Stadium’s Medium page. Photo by Total Shape on UnsplashSupporting mental wellnessBit of Mind is an upcoming mobile decentralized application (dApp) that integrates AI and a combination of Web2 and Web3 technology to provide personalized mental health care services like journal writing, mood tracking, meditation and virtual counseling. In particular, it incorporates an incentivized token reward system where users can earn tokens by participating in the aforementioned self-care practices within the app. Fueling innovationA total of 45,000,000 Bit of Mind (BOM) tokens were available during the pre-sale, with 1 BOM worth 1 KSTA. KSTA is the native token that operates the K Stadium ecosystem. The early sell-out is a testament to the community's strong support and belief in Bit of Mind’s mission to redefine the standard of mental health care, the platform said. It also demonstrates investors’ strong support for and confidence in Bit of Mind's vision.  "Bit of Mind's LaunchPad is a testament to K Stadium's influence in identifying high-potential projects in the blockchain space. The funds raised will play an important role in advancing the development of Bit of Mind's ecosystem, including enhancing AI capabilities, expanding new features and providing opportunities for Web3 paradigm collaborations," K Stadium said. In the future, Bit of Mind is poised to venture into the metaverse as well, merging Web2 and Web3 paradigms and implementing picture-for-profile non-fungible tokens (PFP NFTs).