Kalam Crypto #70: UAE Federal Entity Regulates Crypto & USDT Approaches New ATH
This week, UAE’s SCA started accepting virtual asset license applications, Apple launched a high-yield savings account product, and USDT’s market cap surging to new all-time highs.
"Unlearning is just as important as learning. Unfollowing is just as important as following." Sahil Lavingia
Eid Mubarak and ahlan wa sahlan, and welcome to the 70th edition of CoinMENA's weekly newsletter, Kalam Crypto. This week, UAE’s SCA started accepting virtual asset license applications, Apple launched a high-yield savings account product, and USDT’s market cap surging to new all-time highs. All that and more, so let's dive into this week's letter, and talk crypto:
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Local News 📍
UAE’s SCA to start accepting virtual asset license applications: The Securities and Commodities Authority (SCA) in the UAE is now accepting license applications from companies that wish to provide virtual asset services. The Cabinet issued Resolution No. 111 of 2022, which gave the SCA jurisdiction to regulate virtual asset transactions and license virtual asset service providers. This move is significant as it marks the first federal entity in the UAE to start regulating the crypto industry. For example, companies looking to operate in Dubai must obtain a license from Dubai’s Virtual Assets Regulatory Authority (VARA) in addition to SCA approval.
Lightning Round ⚡️
USDT market capitalization approaches all-time highs: USDT market capitalization sits at ~$81 billion up 15% YTD, and ~$2 billion shy of all-time highs. Its market share is also near all-time highs currently at 62%. The rise of USDT coincides with the increasingly hostile stance of U.S. regulators and the decline of USDC and BUSD.
Telegram's @wallet bot adds bitcoin support: In addition to bitcoin, the @wallet bot also supports Toncoin and the stablecoin tether (USDT). Previously, BTC was only available through the text bot.
Apple Bank?: Apple launches a high-yield savings account offering a 4.15% interest rate. Meanwhile, the average savings account interest rate in America is 0.37%.
Coinbase and Gemini expand internationally: Hostile regulatory environment pushes U.S. crypto firms Coinbase and Gemini to launch offshore crypto derivative exchanges. Coinbase announced they had obtained a license from Bermuda and CEO Brian Armstrong hinted that Coinbase would consider leaving the U.S. and shifting the company’s headquarter to London if the current punitive regulatory environment persists.
FacePalm of the Week 🤦♂️
Bhutan sovereign wealth fund loses 1,888 BTC: Bhutan's $2.9 billion sovereign investment arm, Druk, invested millions in cryptocurrencies like Bitcoin and Ethereum through bankrupt lenders BlockFi and Celsius. Court filings show that BlockFi accused Druk of defaulting on a $30 million loan and failing to repay the loan even after BlockFi liquidated collateral of 1,888 Bitcoin, leaving an unpaid balance of $820,000. This situation highlights the risk of entrusting assets to third-party platforms like BlockFi or Celsius for yield. Self-custody of crypto assets is a much less risky option. Hopefully, the situation with Druk serves as a lesson for other sovereign wealth funds considering adding digital assets to their portfolios. Not your keys, not your coins.
Tweet Of The Week 🐥
CoinMENA News 🗞
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Quiz Corner ✅
Last week’s question: What is bitcoin halving?
Answer: When the block subsidy is cut in half
This week’s question: What does PoW transmute into bitcoin?
B. Goods and services
See the answer in next week’s newsletter. Or check out our new learning platform https://university.coinmena.com/