UAE’s Central Bank to Issue CBDC under New FIT Programme

<p>The Central Bank of the United Arab Emirates (CUBUAE) will launch a central bank digital currency (CBDC) as one of the nine initiatives under its newly-launched Financial Infrastructure Transformation Programme (FIT). The apex bank disclosed this on Sunday in a press release published on its website.</p><p>According to the <a href="https://www.centralbank.ae/media/mdupathy/cbuae-launches-a-financial-infrastructure-transformation-programme-to-accelerate-the-digital-transformation-of-the-financial-services-sector-en.pdf" target="_blank" rel="follow">announcement</a>, the other eight initiatives include the launch of a Card Domestic Scheme, a system for electronic know-your-customer verification and an open finance platform. Other initiatives include the introduction of a supervisory technology, the design of an innovation hub, creation of an instant payments platform, a financial cloud and a system that supports excellent customer experience. All of these initiatives, including the CBDC, will be fully integrated by 2026, the statement further said. </p><p>The bank explained that the FIT programme was designed to support the country's financial services sector and position it for global competitiveness.</p><p>“With a full integration set for 2026, the FIT Programme creates an important platform in support of the country’s ‘We the UAE 2031’ vision and National Digital Economy Strategy. It also further reinforces the CBUAE’s mission to enhance monetary and financial stability and consumer protection through robust financial infrastructure and the adoption of digital technologies," CBUAE explained.</p><p>UAE Sets Out 2023-2026 Roadmap</p><p>The CBUAE’s new update on its CBDC vision comes less than two years after the Middle East country <a href="https://www.financemagnates.com/cryptocurrency/news/chinese-central-bank-others-to-test-cbdc-based-cross-border-payments/" target="_blank" rel="follow">joined other Asian regulators</a> including the People’s Bank of China on a CBDC project that focuses on cross-border payments. CBUAE in 2021 also set out the country's <a href="https://www.financemagnates.com/cryptocurrency/news/uae-central-bank-sets-roadmap-for-cbdc-launch/" target="_blank" rel="follow">2023-2026 CBDC roadmap</a> with seven objectives among which is to deploy artificial intelligence and big data solutions to drive the United Arab Emirates' (UAE) digital transformation in the financial services sector. </p><p>A year earlier, the UAE in partnership with the Saudi Central Bank concluded <a href="https://www.financemagnates.com/cryptocurrency/news/saudi-arabia-inches-closer-to-officially-launch-digital-currency-with-uae/" target="_blank" rel="follow">a joint one-year CBDC pilot project</a> which highlighted the benefits of using a distributing payment system over a centralized payment structure.</p><p>Meanwhile, last year, the Central Bank of Iran announced <a href="https://www.financemagnates.com/cryptocurrency/news/iran-to-launch-its-own-cbdc-crypto-rial/" target="_blank" rel="follow">plans to launch ‘crypto-rial,’</a> the country’s CBDC. The revelation came as the apex monetary authority of the country notified domestic banks and other credit institutions about a series of regulations related to the digital currency.</p><p>Across the world, central banks are still carrying out experiments on the feasibility and applicability of CBDCs. The European Central Bank recently <a href="https://www.financemagnates.com/fintech/ecb-selects-amazon-nexi-others-fordigital-euro-prototype-excercise/" target="_blank" rel="follow">selected five companies</a> including Amazon to participate in its prototype exercise. About <a href="https://www.financemagnates.com/fintech/spanish-banks-embark-on-new-digital-euro-test/" target="_blank" rel="follow">30 Spanish banks</a> also recently partnered to carry out proof-of-concept trials. </p><p>However, while the Bank of England is willing <a href="https://www.financemagnates.com/cryptocurrency/bank-of-england-pays-200k-for-proof-of-concept-cbdc-wallet/" target="_blank" rel="follow">to pay £200,000</a> for a proof-of-concept CBDC wallet, BoE Governor Andrew Bailey recently <a href="https://www.financemagnates.com/cryptocurrency/is-the-boe-right-to-be-sceptical-on-a-digital-pound/" target="_blank" rel="follow">questioned the need for a digital pound</a> in front of the parliament’s Treasury Select Committee.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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Oracle to Pay $23M to Settle Bribery Charges against Asian Subsidiaries

<p class="MsoNormal">Oracle Corporation, a Texas-headquartered American software and technology company, has agreed to pay more than $23 million to settle bribery charges against its subsidiaries in Turkey, the United Arab Emirates (UAE) and India. </p><p class="MsoNormal">The US <a href="https://www.financemagnates.com/terms/s/securities-and-exchange-commission-sec/" target="_blank" id="3718b4df-fc5f-479a-861e-f52759439c15_1" class="terms__main-term">Securities and Exchange Commission (SEC</a>) on Monday disclosed that it charged <a href="https://www.financemagnates.com/tag/oracle/" target="_blank">Oracle</a> of violating the country’s Foreign Corrupt Practices Act (FCPA) through its subsidiaries.</p><p class="MsoNormal">The FCPA prohibits a US citizen or company from offering, paying, or promising to pay money to any foreign official in order to secure or retain a business deal.</p><p class="MsoNormal">However, <a href="https://www.financemagnates.com/tag/securities-and-exchange-commission/" target="_blank">the American regulator</a> said its investigation found that the subsidiaries violated the Act by creating and using slush funds to bribe foreign officials in return for business between 2016 and 2019.</p><p class="MsoNormal">The investigation was conducted with the assistance of the Capital Markets Board of Turkey, the Emirates Securities and Commodities Authority, and the Securities and Exchange Board of India.</p><p class="MsoNormal">The regulator explained, “According to the SEC’s order, Oracle subsidiaries in Turkey and UAE also used the slush funds to pay for foreign officials to attend technology conferences in violation of Oracle policies and procedures. </p><p class="MsoNormal">“The order found that in some instances, employees of the Turkey subsidiary used these funds for the officials’ families to accompany them on international conferences or take side trips to California.”</p><p class="MsoNormal">SEC in the statement noted that Oracle neither admitted or denied the SEC’s findings. </p><p class="MsoNormal">However, the company has “agreed to cease and desist from committing violations of the anti-bribery, books and records, and internal accounting controls provisions of the FCPA,” SEC said.</p><p class="MsoNormal">The technology company also agreed to pay a $23 million <a href="https://www.financemagnates.com/tag/settlement/" target="_blank">settlement</a> that comprises approximately $8 million in disgorgement and a $15 million penalty.</p><p class="MsoNormal">Speaking on the charges, Charles Cain, the SEC’s FCPA Unit Chief, noted that the case highlighted the critical importance of effective internal accounting controls across all of a company’s operations.</p><p class="MsoNormal">“The creation of off-book slush funds inherently gives rise to the risk that those funds will be used improperly, which is exactly what happened here at Oracle’s Turkey, UAE, and India subsidiaries,” added Cain.</p><p class="MsoNormal text-align-justify">Previous Violation of FCPA</p><p class="MsoNormal">The new case marks the second time the SEC has charged Oracle for violating provisions of the FCPA. </p><p class="MsoNormal">In 2012, the SEC charged Oracle of violating the FCPA by failing to prevent its Indian subsidiary from secretly setting aside money off the company's books.</p><p class="MsoNormal">SEC alleged that the fund was eventually used to make unauthorized <a href="https://www.financemagnates.com/terms/p/payments/" target="_blank" id="f1d2a713-da14-4a6b-8fcd-e8f360d07f45_1" class="terms__secondary-term">payments</a> to phony vendors in India. </p><p class="MsoNormal text-align-justify">Oracle paid $2 million at the time to settle the charges.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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Dubai Sees Crypto as Stepping Stone Towards Global Tech Hub

Dubai is reaping the dividends of new tech investments because it has laid the ground for a post-pandemic boom through a business-friendly and low taxes environment. (Read More)

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Crypto.com gets nod in Dubai and FTX launches in Japan

Crypto.com will have further requirements before its full license is granted in the “near-term” and FTX said the move would allow it to work “directly with Japanese regulators.”

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Over 1,000 Firms Expected to Join Crypto Space in UAE by 2022 End, Expert Says

During the Top CEO event in Dubai, Crypto Oasis co-founder Saqr Ereiqat opined that at least 1,000 companies will enter the crypto space in the United Arab Emirates (UAE) by the end of the year based on a fast-paced ecosystem. (Read More)

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Nearly 67% of UAE Residents are Interested in Crypto Investments, Study Shows

In the next five years, 67% of residents in the UAE will be interested in entering the crypto space, according to a survey by British market research and data analytics firm YouGov. (Read More)

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UAE to Strive for Virtual Service Provider Licenses before Q2

In a bid to become a global crypto hub, the United Arab Emirates (UAE) is gearing up to issue federal licenses to virtual asset service providers (VASPs) by the end of Q1 2022. (Read More)

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United Arab Emirates Plan To Provide Federal Licenses To Crypto Firms In Bid To Become Crypto Hub In The Region

The United Arab Emirates (UAE) plans to issue the first federal licenses to Virtual Asset Service Providers (VASPs) by the end of the first quarter of 2022. According to Bloomberg, the UAE Securities and Commodities Authority (SCA) is in the final stages of amending the legislation that will allow VASP to set up their shops […]

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United Arab Emirates to Issue its First NFT-Backed Stamps

The United Arab Emirates, through the Emirates Post Group (EPG), is set to launch the region’s first Non-Fungible Token-backed postage stamps. (Read More)

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Bitcoin Mining Company Phoenix Group Reports 50% Net Income Increase and 20% Sales Growth

After its oversubscribed initial public offering (IPO), Phoenix Group, a Dubai-based company specializing in bitcoin mining and blockchain infrastructure, has announced a significant 50% increase in net income. The firm further revealed a 20% increase in its annual sales compared to the previous year. Dubai Bitcoin Miner Phoenix Group Records Substantial Increase in Year-on-Year Sales [...]

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India and UAE Break Away From US Dollar: Landmark Agreement Enables Trade Settlements in Rupees and Dirhams

In a compelling turn of events this Saturday, India and the United Arab Emirates (UAE) inked a landmark agreement facilitating trade transactions to be settled in their native currencies, rupees and dirhams, instead of relying on the U.S. dollar. India’s prime minister Narendra Modi visited the UAE, where the countries announced the linking of the [...]

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CoinDCXs BitOasis receives full crypto license in Dubai

BitOasis received a full VASP license, marking the final step in its VARA licensing process and allowing it to offer a full range of crypto trading services.

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Beam Foundation to debut $150M gaming fund in Abu Dhabi

Beam Ventures will launch in 2025, providing funding and acceleration for blockchain gaming startups in the United Arab Emirates.

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Malaysia mulls crypto policy after talks with UAE and Binance founder CZ

Malaysia is reportedly exploring cryptocurrency regulations after its prime minister held discussions with Abu Dhabi leaders and Binance founder Changpeng Zhao.

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Saudi Arabia and OPEC Reveal Surprise Oil Production Cut; White House Insists Cuts Aren’t Advisable Right Now

On Sunday, Saudi Arabia and several major oil producers announced their plan to cut oil production by 1.15 million barrels per day, starting in May and continuing until the end of 2023. According to the Saudi Energy Ministry, the move was coordinated with some members of the Organization of the Petroleum Exporting Countries (OPEC) and [...]

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Laser Digital Joins ATFX and CMC Markets in Dubai Crypto Push, Gains VASP License

Another popular company from the finance world has decided to build its presence in the United Arab Emirates (UAE), which is increasingly becoming a hub for cryptocurrency.

Laser Digital Middle East FZE, a digital asset subsidiary of Nomura operating out of Dubai, announced today (Tuesday) its successful acquisition of a Virtual Asset Service Provider (VASP) license from the emirate's Virtual Asset Regulatory Authority (VARA). This allows Laser Digital to extend its services in the UAE.

Nomura's Laser Digital Opens for Cryptocurrencies in Dubai

This license approval enables Laser Digital to provide Virtual Asset (VA) Broker-Dealer Services and VA Management and Investment Services, thereby boosting its position in the digital asset sector. The company, under the leadership of the CEO Jez Mohideen and the Head of Distribution Cameron Dickie, is planning to launch its Trading and Asset Management businesses. The main goal is to bring a suite of digital asset investment products and solutions to institutional investors.

Founded last year by Nomura, Laser Digital was the brainchild of Steven Ashley, the former head of Nomura's wholesale division, and Jez Mohideen, Nomura's former Chief Digital Officer and Co-Head of Global Markets EMEA. Laser Digital is headquartered in Switzerland but operates from London and Dubai.

On the occasion, Mohideen stated his gratitude towards VARA for approving their operating license and expressed optimism about Laser Digital's future growth.

"VARA's thorough and consultative process provides institutional investors with the assurance they require to engage in this asset class. With the license now in place, we are looking forward to Laser's growth over the coming years" Mohideen added.

Consequently, Normua is the latest financial sector firm to enter the rapidly expanding cryptocurrency industry in the UAE and Dubai. Along with numerous cryptocurrency exchanges, like Binance, brokers and investment banks such as ATFX and CMC Markets have also entered the scene.

Dubai Leverages Crypto Regulatory Woes

Binance's situation demonstrates that cryptocurrencies have not earned regulators' confidence in the US and Europe. Thus, like many other exchanges, it has sought other safe havens, landing in places like the UAE and Hong Kong.

In light of regulatory hurdles in Europe and the USA, the Middle East may become the primary hub for the crypto industry. This is evident from the recent movements by Binance and their acquisition of another local license.

Moreover, the local market could have considerable potential concerning the number of retail investors interested in trading. The increasing number of active traders in the FX/CFD market substantiates this.

"New traders continue to be attracted by an ability to trade with small amounts and their desire to learn a new skill. Market volatility has also been a more effective prompt this year," Lorenzo Vignati, the Associate Research Director at Investment Trends, explained this trend.

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