• The National Bank of Bahrain launches the GCC’s first Bitcoin investment fund.
• The fund offers accredited investors exposure to Bitcoin as a capital-protecting option.
• Bahrain ranks fifth globally in Bitcoin holdings, emphasizing its crypto-friendly stance.

The National Bank of Bahrain (NBB) has made headlines with the launch of a groundbreaking investment fund aimed at providing accredited investors with exposure to Bitcoin.

This initiative marks the first Bitcoin-linked structured investment in the Gulf Cooperation Council (GCC) region, which includes countries such as Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

National Bank of Bahrain collaborating with APR Digital

In collaboration with APR Digital, the fund is designed to cater to the growing interest in digital assets, particularly Bitcoin.

Hisham AlKurdi, Group Chief Executive of Markets & Client Solutions at NBB, in a press release, expressed pride in introducing this innovative product, stating, “We are proud to introduce this bespoke structured investment, which blends the appeal of digital asset exposure with the security of capital protection.”

This move underscores the bank’s commitment to providing wealth management clients with secure and diverse investment opportunities.

Boost for Bitcoin adoption in Bahrain

As Bitcoin continues to gain traction worldwide, the launch of this fund is a significant boost for BTC adoption in Bahrain.

The country is currently ranked fifth globally for the largest Bitcoin holdings, with a portfolio of approximately 13,166 BTC, valued at around $844 million.

Unlike some nations that acquire BTC mainly through seizures, Bahrain has been actively accumulating the cryptocurrency, positioning itself as a leader in the digital asset space.

Furthermore, the Central Bank of Bahrain (CBB) has implemented a clear legal framework to foster the adoption of digital currencies.

Recently, the CBB granted a payment service license to the crypto exchange Crypto.com, allowing it to provide crypto services to Bahraini users, further solidifying Bahrain’s status as a crypto-friendly nation.

With the introduction of this Bitcoin investment fund, the National Bank of Bahrain aims to capitalize on the growing potential of cryptocurrencies, offering clients a unique avenue for portfolio diversification in an evolving investment landscape.

As interest in digital assets continues to rise, Bahrain’s proactive approach is likely to encourage further investment and innovation in the region.

• The UAE updated its tax laws to exempt crypto transactions from value-added tax.
• The change will take effect on November 15 but retroactively apply to transactions from January 1, 2018.

The UAE government amended its regulations around value-added tax laws to exclude digital assets and transactions involving them.

The document published by the Federal Tax Authority (FTA) of the UAE also exempted the activities of investment funds that manage digital assets, and the transfer of ownership of assets and their conversion to or from fiat from value-added tax.

This development is part of a wider streamlining of digital asset regulations by various regulatory authorities within the UAE. For example, the Securities Commodities Authorities (SCA), UAE’s premier financial regulatory authority, partnered with Dubai’s authority, the Dubai Virtual Asset Regulatory Authority (VARA), to jointly oversee digital asset service providers operating within both nations.

A wider push for legitimacy

The UAE’s amendment to its crypto tax laws lends more legitimacy to digital assets within the region as the same VAT exemption is also applied to traditional financial firms and transactions.

According to PwC, virtual assets within the UAE are considered as a “representation of value that can be digitally traded or converted and can be used for investment purposes.”

Legal expert Fred Rispoli has stated that Ripple has a better chance of winning the US Securities and Exchange’s (SEC) appeal in their lawsuit if an unbiased panel is sitting on the case. However, he claimed that the Commission would likely have a 70% to 80% chance of winning if the Judges who sit on the case have a long history of agreeing with the government.

How Ripple Could Defeat The SEC

In an interview on the Thinking Crypto podcast, Rispoli mentioned that the odds would be 70% to 30% in favor of Ripple if the 2nd Circuit Court of Appeal Judges were unbiased. The lawyer noted that the “sad part” about the probabilities of who will win is that it hinges on who the three Judges that get assigned the case are.

CoinGape reported that the US SEC is appealing Judge Analisa Torres’s final judgment on August 7. However, the XRP community has continued questioning whether the appeal will only apply to the $125 million penalty or extend to Judge Torres’ ruling on the programmatic sales last year.

Fred Rispoli gave his opinion, stating that the SEC will likely appeal everything. He noted that the notice of appeal was about the summary judgment and not just the penalty ruling. As such, the Commission can appeal any of the rulings included in the summary judgment.

The legal expert believes that the Commission will focus on programmatic sales, which involves Judge Torres ruling that XRP isn’t a security in itself. He added that they will also seek a higher fine than the $125 million that Judge Torres awarded.

Fred Rispoli noted that the 2nd Circuit’s potential ruling on programmatic sales is most important for XRP holders and the broader crypto community. According to him, the SEC will move to cite the court’s ruling on its case against crypto firms like Binance, Coinbase, and Kraken if the court rules in the Commission’s favor on the programmatic sales.

How The SEC Could Lose It All

Fred Rispoli cited a scenario in which the 2nd Circuit could overturn Judge Torres’s rulings in favor of the SEC. He claimed that this would happen if Ripple got a really good panel. The lawyer also alluded to Ripple’s Chief Legal Officer (CLO) Stuart Alderoty’s comments that they intend to file a cross-appeal.

The legal expert remarked that it would be “foolish” if the crypto firm didn’t file a cross-appeal. He claimed that a cross-appeal would further solidify the company’s 70% chance of winning the appeal as the court will likely reach a “split the baby decision” if this happens. Rispoli explained that this means that the 2nd Circuit will decide to affirm all Judge Torres’ rulings rather than give a different opinion.

Meanwhile, the lawyer predicts the case will likely continue until at least January 2026. This aligns with the timeline for both parties to file their court processes. For instance, he stated that the SEC would likely not file its opening brief until December of this year. After that, he expects Ripple’s reply brief won’t come until March.

Therefore, the lawyer believes the crypto firm should push forward on the legislative front, considering how long the case could take. However, he noted that the good thing is that Judge Torres’ ruling on XRP not being a security remains the law of the land until regulatory clarity or a ruling is made in the appeal.

The Ripple SEC lawsuit negatively impacted the XRP price in the 2021 bull run as the Commission instituted the lawsuit in December 2020. However, crypto analyst Egrag Crypto predicted that the XRP Price will cross $5 despite the SEC appeal.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.