Regulations are behind the wave of companies moving or deploying initiatives in the UAE. The country has introduced a regulatory framework for Decentralized Autonomous Organizations (DAOs), virtual asset providers, Metaverse, and other Web3-related entities.
By providing regulatory clarity and a clear path to compliance amid the US crackdown, the UAE is moving one step closer to achieving its goal of becoming an international financial hub for digital assets.
Predictions about how this will impact the future of the UAE or the cryptocurrency space itself vary, but history shows how countries have used regulatory gaps to build new industries or suppress existing ones.
This week on Crypto Biz we also look at Canaan’s revenue woes, Wormhole’s massive fundraising and Banco Santander’s cryptocurrency moves.
Iota establishes $100 million Abu Dhabi foundation to expand in Middle East
Open source blockchain developer Iota announced the establishment of the Iota Ecosystem DLT Foundation in Abu Dhabi, dedicated to scaling distributed ledger technology (DLT) in the Middle East. The new foundation is supported by $100 million in IOTA (IOTA) digital tokens, which will be secured over four years. According to Iota co-founder Dominik Schiener, the foundation’s main goal is to transform real-world assets into digital format. The plan includes tokenization of assets to advance technological development in the region. Hamad Sayah Al Mazrouei, CEO of the Abu Dhabi Global Market Registry, said he wants Abu Dhabi to become a “leading jurisdiction for the blockchain industry.”
Iota has invested $100 million to establish the Iota Ecosystem DLT Foundation in Abu Dhabi, marking a new step in expanding DLT technology in the Middle East. https://t.co/6ePbeYFs30
— Cointelegraph (@Cointelegraph) November 29, 2023
Canaan secured new financing following a 55% drop in third-quarter revenue.
Bitcoin (BTC) miner Canaan is seeking new capital amid sluggish revenue and bottom lines. According to its Q3 2023 earnings report released on November 28, the company is seeking to sell $148 million in equity through a market offering. The day before, Canaan announced that it had reached an agreement with an undisclosed institutional investor to issue up to 125,000 shares of preferred stock at $1,000 per share, with total proceeds of $125 million. Due to the decline in Bitcoin prices compared to the third quarter of 2022, the company’s revenue fell 55% to $33.3 million. Several Bitcoin miners have filed for bankruptcy in 2022 due to soaring electricity bills and low BTC prices.
Wormhole has raised $225 million at a valuation of $2.5 billion.
Cross-chain protocol Wormhole has secured $225 million in investment, valuing it at $2.5 billion, according to a November 29 announcement. The investment round was led by Brevan Howard, Coinbase Ventures, Multicoin Capital, Jump Trading, ParaFi, Dialectic, Borderless Capital and Arrington Capital. The Wormhole Foundation also announced the launch of Wormhole Labs, an independent technology company focused on tools and services for cross-chain development. Currently, inter-blockchain communication technology is used to connect assets, power oracle data feeds, and transfer non-fungible tokens.
Wormhole has secured a massive investment of $225 million, valuing the protocol at $2.5 billion. This is a strong sign of confidence in cross-chain technology despite past difficulties. https://t.co/9pY4amxfyu
— Cointelegraph (@Cointelegraph) November 29, 2023
Santander appoints cryptocurrency custodian Taurus to protect Bitcoin and Ethereum
Spanish financial services giant Banco Santander has reportedly chosen digital asset management firm Taurus to secure its Swiss clients’ Bitcoin and Ethereum (ETH). Santander’s private banking division has launched a new Bitcoin and Ethereum trading service for customers with Swiss accounts. A Santander spokesperson told Cointelegraph that customers can only access cryptocurrency investment services after making a request through a relationship manager. Last September, Taurus partnered with German banking giant Deutsche Bank to offer customers cryptocurrency storage options.
Before you go: An archipelago in the middle of the Atlantic Ocean is looking for startups and tech talent to fuel economic growth. Web3 entrepreneurs are flocking to the area.
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