Following regulatory uncertainties in major crypto hubs like the U.S., top cryptocurrency companies are shifting operations to Abu Dhabi. Thus, industry giants such as Paxos Trust, Copper Technologies, and eToro Group Ltd have moved their headquarters to this city.
This is due to its investor-friendly policies, growing partnerships, and progressive regulatory stance.
Abu Dhabi’s Appeal Soars
With increased regulatory scrutiny on the crypto sector in many regions, Abu Dhabi is quickly establishing itself as a haven for these leading crypto companies seeking expansion. Many industry leaders have lauded the city’s strategic advantages, citing a burgeoning network of partners, supportive regulatory frameworks, and access to substantial investors.
In a recent interview, Copper CEO Dmitry Tokarev expressed enthusiasm for Abu Dhabi’s embrace of blockchain-based financial markets. Concurrently, ADGM’s Financial Services Regulatory Authority is gearing itself towards embracing innovation in digital assets, per its outlined 2024 business plan.
The Divergence Between Abu Dhabi And Dubai Regulatory Approvals
ADGM garners respect with its decade-long track record and stands out compared to Dubai’s Virtual Assets Regulatory Authority (VARA), whose sole focus is on the crypto sphere. Walter Hessert, Head of Strategy at Paxos Trust Co., emphasized ADGM’s appeal, citing the opportunity to operate under British common law and the regulator’s commitment to consistent and transparent regulations.
Despite Abu Dhabi’s allure, Dubai’s VARA still boasts a more significant number of registered firms in its ecosystem. For instance, Binance Holdings secured operational approval from VARA.
SBI Group And Saudi Aramco Collaborate To Explore Digital Asset Investment
Ripple Labs’ ally, SBI Group, and the state-owned energy titan Saudi Aramco have released a joint announcement over a collaboration to delve into the world of digital asset investments together. This news ignited positive trends within the cryptocurrency ecosystem.
Experts anticipate significant benefits for the crypto and blockchain sectors due to this strategic partnership. SBI Group, a major Ripple partner, holds substantial interests in prominent entities within the crypto sphere.
The newly forged alliance with Saudi Aramco positions the latter to capitalize on its expertise and deepen its involvement in the crypto industry.
Insights About The SBI Group-Aramco Collaboration
The agreement between these powerhouses centers on mutual investments in digital assets and semiconductors. Additionally, SBI Group and Saudi Aramco plan to bolster Japanese startups collaboratively, aiming to expand their footprint in Saudi Arabia.
This endeavor will materialize through the imminent “SBI Middle East launch.” Nevertheless, speculation looms regarding SBI’s role in aiding Saudi Aramco’s diversification through tokenization strategies.
SBI Group’s step in this direction involves the impending debut of START, a brokerage platform facilitating tokenized investment contracts. The platform, set to commence operations on December 25, is a project by Osaka Digital Exchange, where SBI Group holds a majority stake.
While Saudi Aramco presently maintains low-profile investments in the crypto and blockchain realm, its indirect involvement extends through stakes in Andreessen Horowitz (a16z), Tiger Global, Blockchain Capital, and many other entities.
Paving The Way For Broader Crypto Integration
Entities like SBI Holdings have made significant strides in integrating crypto solutions for broader accessibility. Recent involvements include SBI Holdings’ partnership with Circle to drive USDC integration in Japan.
This initiative included launching a 100 billion Yen Fund supporting startups with Web 3.0 and Artificial Intelligence (AI) innovations.
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