UAE “Ready for the Future” for Cryptocurrency-News

Digital currency has subverted the public’s view of money. The future of money is to click on your mobile phone, allowing you to choose to buy or sell goods digitally and in multiple currencies. Around the world, countries are currently struggling to deal with their own currencies, the proposed central bank digital currency and encrypted currencies. Are you ready for the future? If not, it’s time to learn the basics.

What is cryptocurrency?

Cryptocurrency or cryptocurrency is a digital currency that can be used to purchase goods and services, but using an online ledger. The world’s most famous cryptocurrency is Bitcoin (BTC), which has a market value of more than 821 billion U.S. dollars; Ethereum (ETH) is 353 billion U.S. dollars, and Tether (USDT) is 68 billion U.S. dollars.

Bitcoin touched $61,795.40 for the first time in six months on Friday, as there is growing hope that US regulators will allow futures-based exchange-traded funds (ETFs), a move that may open the way for broader digital asset investment.

Cryptocurrency investors have been waiting for the approval of the first US Bitcoin ETF, and bets on this move have driven its recent rebound. The world’s largest cryptocurrency rose 4.5% to its highest level since April 17, and was last reported at $59,290. Since September 20, it has risen by more than half and is close to the all-time high of $64,895 set in April 2021.

According to Bloomberg News on Thursday, the US Securities and Exchange Commission (SEC) will allow the first US Bitcoin futures ETF to begin trading next week.

UAE government support

The popularity of cryptocurrencies has also hit the Middle East and North Africa, because digital assets have gained momentum in Dubai, and the government has allowed free zones to carry out crypto-related business activities in the UAE. With the market value reaching 1.4 trillion US dollars and an increase of 86% year-to-date, the country is expected to become a global center for cryptocurrencies.

Recently, MidChains, a virtual asset trading platform headquartered in Abu Dhabi, is also part of Hub71 and completed the first transaction of all its listed assets as a fully regulated and supervised trading platform operating under the regulatory framework of the Financial Services Regulatory Authority (FSRA) . Abu Dhabi Global Market (ADGM).

MidChains has confirmed transactions between Bitcoin, Ethereum, Litecoin and Bitcoin Cash, and is the first regulated platform in the UAE to trade all these virtual assets on September 1. MidChains currently listed crypto assets for trading account for more than 65% of the global market value of the cryptocurrency market. MidChains has received support from well-known regional and international investors, including Mubadala Investment Company (Mubadala), Miami International Holdings and ADQ’s venture capital platform DisruptAD. MidChains is the first and only fully regulated virtual asset trading platform supported by sovereign wealth funds in the region.

“2021 brings good news for crypto startups hoping to establish in the UAE. The Securities and Commodities Authority (SCA) has signed agreements with some of the country’s flagship free zones (DMCC, DAFZA and DWTCA) to enable crypto-related companies It is easier to obtain a license, set up and operate in the UAE. This is clearly a vote of confidence in the country and the region’s growing crypto ecosystem. In addition to allowing more effective regulation of the crypto market, this SCA initiative will help To enhance Dubai’s reputation as a future-oriented center, the center will benefit from the increase in cryptocurrency adoption in the next few years,” said Srinu Chowhan, vice president. BitOasis President of Marketing and Growth, the regional transaction volume on its platform exceeded US$3 billion in the first half of 2021

“With the development of a supportive regulatory framework, the emergence of cryptocurrencies as a new asset class that records extraordinary returns, and the high concentration of high-net-worth individuals (HNWI) in the UAE in particular, people are increasingly accepting crypto assets as a A way to diversify and expand the portfolio. We see the huge potential for the adoption of cryptocurrencies in the Middle East and North Africa. Proper regulation and investor awareness measures will drive the large-scale adoption of crypto assets in the region.”

The UAE is expected to become a global hub for this unique and emerging asset class. Regional pioneers Coinbase, BitOasis and Matrix have witnessed the rapid growth of the industry.

“During the pandemic-driven turmoil and unprecedented economic policy interventions, the breadth and depth of this emerging sector has grown. Prices fell by nearly 50% between April and July, but the investment allocated to the industry in August exceeded 2 billion US dollars. Under all this, technological and financial innovation is booming. The world is realizing what many of us have already known: virtual assets will continue to exist,” said Matrix CEO Terry Culver.

The 11th AIM Summit recently concluded at the Dubai International Financial Center (DIFC) had representatives from Tezos, Invictus Capital, RChain, Hut 8 and CasperLabs.

Talal Tabbaa, co-founder and CEO of Jibrel Network, said: “Encryption is inevitable to become mainstream because the global adoption rate is about 2%, and it is logical that we see this growth in the coming years. Bahrain and UAE Solid steps have been taken to accelerate the growth of encryption in the region. It is great to see SCA promoted, this is definitely a step in the right direction, but I believe that comprehensive encryption regulations covering the banking industry are essential. Enter And the withdrawal of cryptocurrency still depends on the bank, so it is important to solve the elephant problem in the room.”

Cryptocurrency has gained great popularity in the Middle East in a short period of time. New encryption technologies such as Defi and NFT are beginning to provide their users with positive real-world effects. As regulations in this area become clearer and the UAE and Bahrain establish a regulatory framework for cryptocurrency-related businesses, the adoption of digital assets will continue to increase.

“The UAE has become a popular destination for crypto and blockchain investors and entrepreneurs. The recent permission of SCA to conduct crypto asset transactions within the Dubai World Trade Center (DWTC) is the authority’s promotion and support of the growing crypto space within the UAE. “Arshad Khan, CEO of Arab Exchange said.

“Dubai and Abu Dhabi have established a global reputation as innovative cities. This move will allow growth in the crypto space and an explosion of new ideas. This move will accelerate the synergies and synergies that have already occurred in the crypto space outside the UAE. Innovate and indeed attract new high-quality talents to this city. This will also bring additional employment opportunities and investment.”

At the same time, CED2021, one of the premier cryptocurrency exhibitions and conferences, ended on Friday, with more than 8,000 people participating in the mixed event. The event witnessed the participation of more than 80 crypto industry speakers and 64 crypto companies. Top crypto companies such as Currency.com, Zebpay, B2broker, Regal RA, Smartkey, Koda Finance, Bybit, Localtrade, CoinSwap, etc. participated in the event and demonstrated their products to traders and investors.

Bitcoin mining explores sustainable energy

The most powerful feature of Bitcoin is that it allows individuals to safely transfer value to each other without the need for a central intermediary like a bank to verify transactions.

Instead, transactions are verified through a process called mining. Bitcoin mining ensures that the Bitcoin network is secure and allows peer-to-peer (P2P) transmission over the Internet in about 10 minutes-a decentralized platform where two people can directly interact with each other, said CEO Zachary Cefaratti Mar Capital Management Executive Officer.

Miners are compensated for verifying transactions through transaction fees and receive additional rewards for using newly minted bitcoins to protect the network. All new bitcoins entering circulation are created through mining, and there will always be only 21 million bitcoins, of which nearly 90% have been mined. Every four years, the number of new bitcoins entering the market is halved, and the last bitcoin will be mined around 2140.

Cefaratti said: “Currently, Bitcoin mining is a lucrative industry, and the most efficient mining business has achieved an EBITDA margin of 90% in a short period of time.”

The excess profits of the Bitcoin mining industry have been driven by rising Bitcoin prices, global chip shortages, China’s recent mining ban, and a longer period of time to develop suitable electrified infrastructure in this energy-intensive business.

The high profitability of Bitcoin mining has led to an increase in capital market activity, but it has also caused scrutiny, pushing the industry to shift to more sustainable energy sources. In terms of sustainability, the Bitcoin mining industry has become a leading industry, with approximately 70% of the Bitcoin mining industry using sustainable energy, and in the broader economy, this proportion is about 16%.

— Sandhya@khaleejtimes.com

Sandia De Mello

reporter. period. My interests are economics, finance and information technology. Before joining Khaleej Times, I worked in some leading publications in India, including The Economic Times.