Regulation is behind the wave of companies expanding and developing initiatives in the UAE. The country has introduced a regulatory framework for decentralized autonomous organizations (DAOs), virtual asset providers, the Metaverse, and other Web3-related entities.
By providing regulatory transparency and a clear path to compliance amid a crackdown in the US, the UAE is moving closer to achieving its goal of becoming an international financial hub for digital assets.
Predictions vary as to how it will affect the future of the UAE and the crypto space itself, but history shows that countries have used regulatory gaps to build new industries or suppress existing ones. It shows what has been done.
This week on Crypto Biz, we also explore Canaan’s revenue challenges, Wormhole’s major funding, and Banco Santander’s move into crypto.
Iota launches $100 million Abu Dhabi Foundation for Middle East expansion
Iota, an open source blockchain developer, announced the launch of the Iota Ecosystem DLT Foundation in Abu Dhabi, dedicated to expanding distributed ledger technology (DLT) in the Middle East. The new foundation will be backed by a $100 million IOTA digital token vested over four years. According to Iota co-founder Dominik Schiener, the foundation’s main objective is to convert real-world assets into digital format. The initiative includes the tokenization of assets to foster technology development in the region. Hamad Saya Al Mazrouei, CEO of the Abu Dhabi Global Market Registry, said the country wants to become a “leading jurisdiction in the blockchain industry.”
Iota has invested $100 million to establish the Iota Ecosystem DLT Foundation in Abu Dhabi, marking another step in the expansion of DLT technology in the Middle East.https://t.co/6ePbeYFs30
— Cointelegraph (@Cointelegraph) November 29, 2023
Canaan secures new funding amid 55% drop in third-quarter revenue
Bitcoin (BTC) miner Canaan is seeking new funding as revenues and profits slump. According to its third quarter 2023 earnings report released on November 28, the company aims to sell $148 million in stock through an open market offering. The previous day, Canaan announced that it had reached an agreement with an undisclosed institutional investor to issue up to 125,000 preferred shares at a price of $1,000 each, raising a total of $125 million. The company’s revenue decreased by 55% to $33.3 million compared to Q3 2022 due to the decline in Bitcoin prices. Multiple Bitcoin miners filed for bankruptcy in 2022 due to rising electricity costs and falling BTC prices.
Wormhole raises $225 million at $2.5 billion valuation
Cross-chain protocol Wormhole has secured $225 million in investment at a valuation of $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. Its inter-blockchain communication technology is currently being used to bridge assets, power oracle data feeds, and transfer non-fungible tokens.
Wormhole has secured a huge investment of $225 million, valuing the protocol at $2.5 billion. Despite past challenges, it shows strong confidence in cross-chain technology. https://t.co/9pY4amxfyu
— Cointelegraph (@Cointelegraph) November 29, 2023
Santander appoints crypto administrator Taurus to protect Bitcoin and Ether: Report
Spanish financial services giant Banco Santander has reportedly selected digital asset management company Taurus to protect the Bitcoin and Ether (ETH) of its Swiss customers. Santander’s private banking division has launched a new Bitcoin and Ether trading service for customers with Swiss accounts. A Santander spokesperson told Cointelegraph that customers can only access crypto investment services by requesting through a relationship manager. Taurus also partnered with Deutsche Bank, a major German bank, in September to offer customers storage options for their cryptocurrencies.
Before you leave: The archipelago in the middle of the Atlantic Ocean is seeking startups and technology talent to fuel economic growth. Web3 Entrepreneurs are flocking to the region.
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