Fuzenomics Weekly #24

Your route to web3 alpha in the MENA region. Whether you’re a seasoned HODLer or just getting into crypto - we’ve got something for everyone to keep you ahead of the curve. By the community, for the community - Fuzenomics Weekly.

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Birds Eye View (vs Last 7 Days)

?? Overall Crypto Market Cap: $2.18 Trillion (-2.6%)

?? BTC Dominance: 56.35% (+0.09 PPT)

?? Price Snapshot:

?? Bitcoin: $62395 (-1.3%)

?? Ethereum: $2499 (-5%)

?? BNB: $554 (-8.6%)

?? Solana: $147 (+0.5%)

ChainAnalysis: MENA accounts for 7.5% of global crypto volume

A recent Chainalysis report from Sept. 25 shows that the Middle East and North Africa (MENA) region made up 7.5% of global cryptocurrency transaction volume from July 2023 to June 2024.

The total value received during this time was estimated at $338.7 billion, with most transactions coming from institutional and professional investors.

The report states that about 93% of transactions were $10,000 or more, far outweighing small retail investors, who only accounted for 1.8% of all transaction volume in the region.

Most onchain activity in the area happened through centralized exchanges. However, the report also noted high interest in decentralized platforms in the United Arab Emirates and Saudi Arabia.

Chainalysis highlighted the United Arab Emirates' rise as a global crypto hub, mainly due to clear regulations and a forward-thinking approach to digital asset technology.

In August 2024, the Dubai Court of First Instance ruled that cryptocurrencies are valid for paying employees and recognized workers' rights to receive digital tokens stated in legal work contracts.

The case involved a plaintiff who agreed to a monthly salary in both regular money and EcoWatt tokens. When the employer didn't provide the tokens, the plaintiff went to court.

In 2023, the court said the plaintiff was owed money but didn't require payment in crypto. This decision was changed in the August 2024 ruling.

In September 2024, UAE financial regulators took another step towards embracing digital assets by allowing licensed virtual asset providers in Dubai to serve the entire country.

The head of Dubai's Virtual Assets Regulatory Authority's (VARA) executive board said their new partnership with the UAE's Securities and Commodities Authority (SCA) makes regulation easier and helps protect investors from risks and fraud.

More recently, the Central Bank of the United Arab Emirates approved an insurance product for custodians that would protect financial institutions and their clients from losses due to hacks, internal fraud, and damage to storage systems.

What are your thoughts on ME's journey in digital assets? Have we already peaked, or are we just getting started?

Dubai’s Virtual Asset Regulatory Authority ???? strengthens rules on crypto marketing

Dubai's Virtual Asset Regulatory Authority (VARA) is rolling out stricter guidelines for firms promoting crypto investments in the emirate.

In a recent statement, VARA said companies advertising digital asset investments must now include a clear warning.

The regulator requires the disclaimer to be clearly visible and state that "virtual assets may lose their value in full or in part and are subject to extreme volatility."

VARA's CEO Matthew White explained that providing clear guidance helps virtual asset service providers (VASPs) "offer their services responsibly." He added that this builds trust and openness in the market.

Also, companies offering consumer facing incentives for digital assets or related products in Dubai must get approval from VARA first. This step ensures that these incentives or offers aren't used to distract investors from weighing the risks of potential investments.

This update follows a recent move allowing VARA-licensed crypto providers to expand their services across the United Arab Emirates.

On Sept. 9, VARA and the Securities And Commodities Authority (SCA) - the UAE's federal financial regulator - announced a partnership to jointly oversee VASPs. This means providers in Dubai seeking a VARA license can also register with the SCA, letting them serve the wider UAE market.

Helal Saeed Al Marri, who heads VARA's executive board, said this shows regulatory unity in the country. He also stressed that it advances their goal of a secure and connected virtual assets ecosystem.

A study by an investment migration consultancy ranked the UAE third in crypto adoption. The country scored high in tax-friendliness, beating other nations on the list. The UAE also did very well in economic factors, innovation, and technology.

The research noted that many UAE residents own crypto. The study found that startups thrive in the country, with government support matching the public's enthusiasm for crypto.

Ripple receives in-principle license approval in Dubai

Ripple, a top crypto payment solutions provider, has been granted provisional license approval by the Dubai Financial Services Authority (DFSA), paving the way for its establishment in the United Arab Emirates (UAE).

On October 1, Ripple announced the DFSA's in-principle license approval, a key step towards obtaining a full license in Dubai. Once fully licensed, Ripple will be able to provide cross-border payment services for traditional and digital currencies in the Dubai International Financial Center (DIFC), a dedicated economic zone.

The company stated in its official announcement:

"This achievement greatly expands Ripple's global presence as a regulated entity and allows for the introduction of smooth cross-border payment services, including Ripple Payments Direct (RPD), in the UAE."

To finish the process, businesses in the DIFC, including those in the crypto industry, must meet several requirements , such as securing office space within the zone. After successful registration, the DIFC will issue a full license to applicants.

Ripple aims to become the first blockchain-powered payment services provider licensed by the DFSA. The company intends to launch its enterprise-grade digital asset infrastructure in the UAE. Ripple CEO Brad Garlinghouse commented:

"With its progressive regulatory approach and clear guidance for innovative companies looking to invest and grow, the UAE is positioning itself as a global leader in this new era of financial technology."

Ripple also plans to use Dubai as a key hub to access rapidly growing crypto markets across the Middle East, Africa and South Asia.

Salmaan Jaffery, chief business development officer of the DIFC Authority, highlighted Dubai's ideal position as a global center:

"Dubai's strategic location and DIFC's strong legal and regulatory framework, built on two decades of experience, makes this the perfect hub for international businesses aiming to make a lasting impact."

However, Dubai's digital asset regulator recently introduced stricter rules for companies marketing crypto investments in the UAE. On September 26, Dubai's Virtual Asset Regulatory Authority (VARA) required all companies promoting digital asset investments in the country to add a disclaimer to their marketing material .

VARA CEO Matthew White stated that providing clear and actionable guidance can help virtual asset service providers "deliver their services responsibly."

European ???? blockchain sandbox onboards 41 regulators in second cohort

The European Commission has unveiled the list of regulators taking part in the second phase of its blockchain sandbox program.

On Sept. 30, the European Blockchain Sandbox Initiative (EBSI) announced that 41 regulatory bodies from 22 countries in the EU and European Economic Area have signed up for the initiative.

The participating authorities come from: France, Spain, The Netherlands, Italy, Greece, Slovenia, Germany, Cyprus, Portugal, Bulgaria, Belgium, Denmark, Norway, Latvia, Malta, Poland, Hungary, Slovakia, Iceland, Liechtenstein, Lithuania and the Czech Republic.

The European Commission created the EBSI to back use cases involving distributed ledger technology (DLT). The project seeks to offer a platform for blockchain projects, regulators and authorities to interact and spot legal and regulatory hurdles to blockchain innovation.

The initiative aims to boost regulatory clarity for decentralized tech solutions like blockchain. The European Commission stated:

"The Sandbox will help regulators and supervisors improve their understanding of cutting-edge blockchain technologies. Legal advice and regulatory insights will be shared in a secure and private setting."

Moreover, the EBSI will yearly back 20 projects that develop blockchain-based use cases. The use cases will be picked based on factors like business readiness, legal relevance and alignment with EU policy goals.

The chosen projects will get legal and regulatory guidance from the law firm Bird & Bird and can discuss regulatory issues with participating regulators.

On June 13, the EBSI revealed the companies chosen for its second cohort. These included firms with use cases spanning from real-world asset (RWA) tokenization to projects aiming to create blockchain-based digital passports.

Iota, a crypto ecosystem and open-source distributed ledger, is among the projects selected for the second group.

Iota said that joining the EBSI was a key step for its identity solution. The project noted this paves the way for talks on KYC and privacy in Web3. "This is particularly important now as many regulators are weighing their approach to decentralized finance," Iota added.

Bank of England ???? and FCA launch Digital Securities Sandbox

The Bank of England (BoE) and the UK's financial watchdog have rolled out a sandbox to test how blockchain tech can improve the handling of financial securities.

On Sept. 30, the BoE and Financial Conduct Authority (FCA) revealed the Digital Securities Sandbox (DSS), letting firms explore blockchain's benefits for financial securities.

The FCA noted that new tech could boost market efficiency, transparency and resilience. The watchdog said successful implementation might lead to "cost savings across markets and users" by speeding up processes and cutting expenses.

The regulators stressed that the DSS will enable digital securities trading, settlement and issuance in the UK. This will happen on smart, distributed ledgers while following BoE and FCA rules.

The FCA believes this move will boost the UK's status as a global financial hub. The watchdog said it will create the right environment for investment and lasting growth.

Any UK-registered company can apply to join the DSS, regardless of size or stage. The FCA stated:

"This could be an existing financial firm that's already approved under current rules or a newcomer to the market."

The FCA said the DSS will run until December 2028, with possible extensions. Applications will close in March 2027, giving regulators and firms time to shift to a more permanent system.

The BoE outlined four DSS stages: testing, launch, growth and permanent setup.

The regulator noted that in its second stage, the DSS will involve issuing, trading and settling real digital securities, used like traditional ones. The BoE said this could include stocks, corporate and government bonds, money market tools, fund units and carbon credits.

The BoE also mentioned three goals it shares with the FCA. These are fostering a safe, efficient and sustainable financial system, safeguarding financial stability and ensuring market fairness.

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