UAE regulatory structure attracts crypto companies, Canaan’s revenue decline and more
Regulation is behind the wave of companies operating or deploying initiatives in the UAE. The country has introduced regulatory frameworks for decentralized autonomous organizations (DAOs), virtual asset providers, metaverses and other Web3-related entities.
By providing a clear path to regulatory transparency and compliance — amid a crackdown in the United States — the UAE is moving closer to becoming what it aspires to be: a global financial center for digital assets.
While predictions differ on the future of the United Arab Emirates or how it will affect the crypto space, history shows how countries have used regulatory loopholes to build new industries or stifle existing ones.
This week's CryptoBiz explores Canaan's revenue challenges, Wormhole's massive fundraising and Banco Santander's crypto activities.
Iota launched a $100 million Abu Dhabi foundation for Middle East expansion
Open source blockchain developer Iota has announced the launch of the Iota Ecosystem DLT Foundation in Abu Dhabi, which is committed to promoting distributed ledger technology (DLT) in the Middle East. The new foundation will be supported by 100 million dollars in Iota (IOTA) digital tokens, which will be given over four years. According to Iota co-founder Dominique Shiner, the foundation's main goal is to convert real-world assets into digital formats. The initiative includes property tokens to promote technological development in the region. According to Hamad Sayah Al Mazroi, CEO of the Abu Dhabi Global Market Registration Authority, the country wants to be the “leading authority of the blockchain industry”.
Iota launches Iota Ecosystem DLT Foundation with $100M investment in Abu Dhabi, marking a new step to expand its DLT technology in the Middle East.https://t.co/6ePbeYFs30
— Cointelegraph (@Cointelegraph) November 29, 2023
Canaan found new financing when revenue fell 55% in Q3
Bitcoin (BTC) miner Canaan is looking for new capital due to declining revenue and bottom line. According to its Q3 2023 earnings report released on November 28, the company is looking to sell $148 million of its publicly traded equity. A day earlier, Canaan announced an agreement with an undisclosed institutional investor to issue up to 125,000 preferred shares at $1,000 each for a total of $125 million. Compared to the third quarter of 2022, the company's revenue fell 55% to $33.3 million due to the decline in the value of Bitcoin. In 2022, several Bitcoin miners filed for bankruptcy due to electricity costs and low BTC value.
Wormhole will raise $225 million at a cost of $2.5 billion
Cross-chain protocol Wormhole has received an investment of 225 million dollars at a value of 2.5 billion dollars, according to the announcement made on November 29, the investment round was led by Brevan Howard, Coinbase Ventures, Multicoin Capital, Jump Trading, ParaFi, Dialectic. Borderless Capital and Arrington Capital. The Wormhole Foundation also announced the launch of Wormhole Labs. Currently, blockchain-to-blockchain communication technology is used to link assets, feed verbal data, and transfer immutable tokens.
Wormhole values the protocol at $2.5B, justifying a massive investment of $225M. A sign of strong confidence in cross-chain technologies despite past challenges. https://t.co/9pY4amxfyu
— Cointelegraph (@Cointelegraph) November 29, 2023
Santander Appoints Crypto Guardian Taurus To Protect Bitcoin, Ether: Report
Spanish financial services giant Banco Santander has reportedly chosen digital asset management firm Taurus to protect its Swiss clients' Bitcoin and Ether (ETH). Santander's private banking division has launched a new Bitcoin and Ether trading service for customers with Swiss accounts. A spokesperson for Santander told Cointelegraph that clients can access crypto investment services only after requesting through contact managers. In September, Taurus partnered with German giant Deutsche Bank to offer cryptocurrency custody options to its customers.
Before you go: A mid-Atlantic archipelago needs startups and tech talent to boost its economic growth. Web3 entrepreneurs are flocking to this region.
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