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QCP Capital Enters Abu Dhabi With Initial Regulatory Nod

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QCP Capital, a prominent player in the crypto options trading realm, has secured initial approval to establish operations in Abu Dhabi. This marks another significant expansion for crypto firms in the Middle East. Nonetheless, the firm is still striving to secure complete approval in the region.

QCP Bags Regulatory Nod In Abu Dhabi

The Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) granted QCP Capital in-principle approval to engage in regulated activities, as disclosed in a statement on Tuesday, May 7. Notably, this milestone positions QCP as the first Singapore-based digital-asset market maker and broker dealer to receive preliminary approval, as confirmed by an ADGM spokesperson.

With the United Arab Emirates intensifying efforts to attract more crypto entities, notable names like Binance, OKX, and Nomura’s Laser Digital have already made moves. QCP, boasting nearly $60 billion in crypto derivatives trading volume last year, intends to transition some of its 70-plus employees to Abu Dhabi upon securing a full license.

Melvin Deng, QCP’s CEO, underscored Abu Dhabi’s progressive regulatory stance, emphasizing its holistic approach to digital assets within the broader financial ecosystem. According To a Bloomberg report, Deng stated, “Abu Dhabi has got very progressive regulators in that they are thinking about the digital assets as a complete ecosystem with all of traditional finance.”

Moreover, geographical considerations also influenced QCP’s expansion strategy, Deng noted owing to the global nature of crypto. For context, a report by Ernst & Young, as of September 2023, shows that monthly crypto derivatives volume reached $1.33 trillion. Moreover, the majority of the activity occurs beyond the U.S. borders.

“The Middle East is actually quite a good confluence for capital flows from Europe, to the Middle East region, as well as Asia,” Deng remarked. In addition, he emphasized the region’s similarities to Singapore and the desire to leverage its capabilities to establish a new marketplace.

Also Read: Digital Chamber Slams SEC’s ‘Regulation by Intimidation’ Strategy

Recent Partnership In Abu Dhabi

Furthermore, in a recent development, QCP announced a partnership with Abu Dhabi venture capital firm, Further Ventures. The collaboration aims to pioneer new digital asset products. Upon securing the full license, the firm plans to prioritize core activities such as trading and market making in the region.

Moreover, Arvind Ramamurthy, chief of market development at ADGM, expressed optimism about the evolving digital assets landscape in the Middle East. Additionally, he anticipates more companies, akin to QCP, recognizing ADGM’s progressive and comprehensive regulatory frameworks. This instills confidence in selecting Abu Dhabi as their regional hub.

Also Read: Ex-SEC Official John Reed Stark to Testify on Crypto Enforcement

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CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

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.





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Cryptocurrencies granted legal status in Turkey under new crypto law

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Cryptocurrencies granted legal status in Turkey under new crypto law
  • Turkey legalizes cryptocurrencies, defining them as “intangible fixed assets.”
  • SPK permission required for crypto organizations, with strict regulatory oversight.
  • Severe penalties for unauthorized activities, enhancing market security and compliance.

In a landmark move, Turkey has granted legal status to cryptocurrencies, redefining them as “intangible fixed assets” through a new regulation.

The new law, which has been published in the Official Gazette after approval by the parliament, not only legitimizes digital currencies but also introduces stringent oversight and penalties for unauthorized activities.

By mandating permissions from the Capital Markets Board (SPK) and implementing comprehensive regulatory standards, Turkey aims to increase transparency, security, and investor confidence in its cryptocurrency market.

Turkey’s new legal framework for cryptocurrencies

The new cryptocurrency law in Turkey marks a significant shift in how digital assets are perceived and managed in the country.

By classifying cryptocurrencies as “intangible fixed assets” within the Capital Markets Law, the country has laid the foundation for a more structured and enforceable approach to regulating these financial instruments. This classification offers a clear legal definition, thereby reducing ambiguities and enhancing the legitimacy of cryptocurrencies in Turkey’s financial ecosystem.

One of the most notable features of this regulation is the requirement for organizations operating in the cryptocurrency sector to obtain permission from the SPK. These entities are given a one-month window to apply for the necessary licenses, after which they will be under the regulatory supervision of the SPK.

This move is designed to mitigate the risks traditionally associated with the cryptocurrency market, promoting a safer and more reliable environment for investors.

The new law enhances market security and compliance

The new law introduces severe penalties for unauthorized cryptocurrency activities. Individuals involved in unlicensed transactions could face judicial fines calculated between 5,000 and 10,000 days and imprisonment ranging from three to five years.

This strict enforcement strategy aims to deter illegal activities and ensure compliance with the regulatory framework, thus fostering a more secure market.

Additionally, the regulation mandates meticulous record-keeping of all transactions conducted on cryptocurrency exchanges. This requirement is expected to create a clear audit trail, which will help in preventing fraud and other illicit activities.

By enhancing transparency, these measures aim to build investor trust and confidence in the cryptocurrency sector.

Structured listing procedures and standards

To further streamline the cryptocurrency market, the regulation requires platforms dealing with digital assets to develop written listing procedures.

These procedures will govern the selection, initial sale or distribution, and termination of trading of assets. The SPK will regulate the principles and standards applied to these procedures, ensuring a consistent and reliable framework for cryptocurrency trading platforms.

The introduction of these comprehensive measures signifies Turkey’s commitment to integrating cryptocurrencies into its broader financial regulatory environment.

By defining clear rules and establishing strict enforcement mechanisms, Turkey aims to create a more transparent, secure, and investor-friendly cryptocurrency market.



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Paxos Wins Approval from Singapore to Issue Stablecoins

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Paxos Digital Singapore Pte. LTD., a key player in the cryptocurrency sector, has recently secured approval from Singapore’s central bank to offer digital payment token services. This pivotal clearance allows Paxos to issue stablecoins that are compliant with Singapore’s regulatory framework, marking a significant expansion in its global operations.

Singapore Approves Paxos for Digital Payments

The Monetary Authority of Singapore (MAS) has granted Paxos the status of a major payment institution, a testament to the firm’s robust financial base and commitment to regulatory standards. With this approval, Paxos joins a select group of 19 entities authorized under Singapore’s rigorous financial regulatory environment. This move is expected to broaden the accessibility of U.S. dollars via stablecoins to a more extensive global audience.

Paxos’ expansion in Singapore reflects a growing trend of cryptocurrency integration into mainstream financial services. The firm is already authorized to issue stablecoins in the U.S. and the United Arab Emirates, underscoring its established presence in the digital finance arena. Moreover, the collaboration with Singapore-based DBS Bank will support cash management needs and the custody of stablecoin reserves.

Also Read: Cardano Founder Calls for Crypto Focus in U.S. Election Voting

DBS Leads in Banking and Crypto Integration

DBS Bank, a pioneer in the digital asset ecosystem, has embraced its partnership with Paxos to enhance its range of services in the cryptocurrency sector. Since launching a fiat-to-crypto exchange in 2020, DBS has been at the forefront of integrating digital currencies within traditional banking frameworks. Their ongoing commitment is highlighted through innovative projects, including a venture into the metaverse with the gaming platform Sandbox.

This partnership broadens DBS’s service offerings and consolidates its position as an innovator within the rapidly evolving digital asset landscape. By aligning with Paxos, DBS aims to enhance its digital asset transactions and offerings by leveraging the stability and reliability of regulated stablecoins.

Despite the recent strides in regulatory approvals and partnerships, Paxos has faced its share of challenges. The firm recently announced a reduction in its workforce, a strategic decision to improve efficiency in its operations, particularly those focused on tokenization and stablecoin projects. Charles Cascarilla, CEO of Paxos, communicated this decision through an internal email, emphasizing the firm’s robust financial standing with over $500 million on its balance sheet.

Also Read: Binance CEO Confirms Continued Support For USDC In EU

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

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.





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U.S. Treasury issues new Cryptocurrency tax rules

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  • The IRS has set up a tax reporting framework for cryptocurrency brokers, which will be implemented in 2025.
  • The framework does not include decentralised finance and non-hosted wallets, although rules for those will come later in the year.

Under the new framework, crypto brokers, hosted wallet services, and digital asset outlets must file 1099 tax forms to document gains earned on their users’ digital assets. These assets will include coins, tokens, NFTs, and stablecoin transactions above a certain threshold.

The new regime does not yet include tax reporting processes for proceeds and earnings from decentralised finance activities or non-hosted wallets, as it is focused on large centralised firms. However, regulations for DeFi will reportedly come later in the year and will take effect along with the rest of the framework in January 2025.

The regime stipulates that users who earn less than $10,000 worth of stablecoins in a year are exempted from reporting. Furthermore, crypto brokers can report stablecoin sales as an aggregate, although they must report sophisticated, high-volume individual sales separately.

For NFTs, users are exempt from reporting NFT sales proceeds under $600 in a financial year.

Starting 2026, crypto brokers will be required to maintain a cost basis record for all assets, including the prices at which users purchase their assets. Real estate transactions settled with crypto will also be reported using the fair market value of the digital assets used.



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