?? Uptober is Here! Plus, Big News: First AED Stablecoin Approved

“Talent and potential mean nothing if you can't consistently do the boring things when you don't feel like doing them.”

Ahlan wa sahlan, and welcome to the 131st edition of CoinMENA’s weekly newsletter, Kalam Crypto! This week, we bring you exciting local updates from the UAE. First, the UAE announced that crypto transactions are now exempt from VAT, and the Central Bank has approved the country’s first AED stablecoin. On the global front, crypto ETFs have recorded their largest daily inflows since June! Additionally, the Crypto Information Sharing and Analysis Center (ISAC) reports that cash, not crypto, continues to be the dominant means in criminal activities globally. All this and more in this week's edition of Kalam Crypto!

Local News ??

UAE Central Bank approves first AED stablecoin: AED Stablecoin LLC has received in-principle approval from the Central Bank of the UAE to launch AE Coin, the country's first-ever dirham-backed stablecoin. Licensed under the 'Payment Token Services Regulation,' AE Coin offers the stability of the UAE dirham with the agility of blockchain technology, ensuring secure, low-cost, and transparent transactions. AE Coin is fully regulated, with transparent reserves and regular audits, mitigating cryptocurrency volatility. As CoinMENA, we are very excited about this development and look forward to adding AED stablecoins to our growing list of digital assets, further enhancing the options available to our users.

UAE exempts crypto transactions from VAT: The United Arab Emirates has exempted crypto transactions from value-added tax (VAT), aligning the industry with traditional financial services. Effective from Nov. 15, 2024, the exemption applies retrospectively to transactions dating back to Jan. 1, 2018. It clarifies that the 5% VAT does not apply to digital assets, covering exchanges and ownership transfers. This move classifies virtual assets similarly to traditional financial services, further legitimizing the crypto industry in the UAE.

Keep an eye on ??

BTC ETFs have a monster Monday: Spot bitcoin ETFs in the U.S. saw net inflows of $555.8 million on Monday, their largest since June 4, with Fidelity’s FBTC leading the way at $239 million. BlackRock’s IBIT followed with $79.5 million, and the 12 bitcoin ETFs collectively traded over $2.61 billion in value. The cumulative net inflows for spot bitcoin ETFs now approach $20 billion since January, blowing away every pre-launch estimate. Spot Ether ETFs also saw positive movement, with net inflows of $17 million, led by BlackRock’s IBIT and Fidelity’s FETH.?

Global News ??

Illicit share of cryptocurrency transactions decreases from 0.42%? to 0.34%: Chainalysis reported that illicit activities represented only 0.34% of total on-chain transaction volume in 2023, down from 0.42% in 2022, a figure significantly lower than the estimated illicit activities facilitated through traditional finance. According to the U.S. Department of Treasury, virtual assets are used for money laundering far less than fiat currencies. Traditional finance systems (TradFi) have long been the primary conduit for large-scale illicit financial flows, with an estimated $3.1 trillion linked to money laundering and other crimes, according to Nasdaq. In contrast, the value received by illicit cryptocurrency addresses dropped to $24.2 billion in 2023, down from $39.6 billion in 2022, further underscoring the smaller scale of illicit activity within the crypto space compared to TradFi.

CoinMENA News ???

Zero Trading Fees Uptober Celebration: In the crypto world, October is often called “Uptober” because historically, crypto prices tend to rise. To celebrate, we’re offering zero trading fees for the entire month of October! Take advantage of zero fees and enjoy the best crypto-to-fiat rates in the market.

Tweet Of The Week ??

Bitcoin is hope.

Quiz Corner ??

Last week’s question: who are the two fastest-growing crypto markets in MENA? The correct answer is A, KSA & Qatar.

This week’s question is, according to the Crypto Information Sharing and Analysis Center (ISAC), which of the following is the dominant means of criminal activities globally?

A) Bitcoin

B) USDT

C) Cash

D) Ethereum

See the answer in next week’s newsletter. Or check out our new learning platform https://university.coinmena.com/