On the show we have Kokila Alagh, Founder of Karm Legal and Akshata Namjoshi, Senior Associate at Karm Legal speaking to us.

We discuss:

• How progressive the implementation of regulation has been
• Comparing regulations/initiatives around ADGM, DIFC, ESCA and Central Bank of Bahrain
• The recent public consultation paper issued by ESCA
• How to enter the MENA market from a regulatory and strategic standpoint? What licenses should companies look at? How as a company entering the region should we label ourselves?
• How long it takes companies to graduate from a sandbox?
• International regulatory landscape
• Why Karm Legal are bullish on security tokens?

Nic also asks his usual bunch of futuristic ‘What if’ questions which results in inspired answers and we also diverge into other Fintech topics too.

Special Guests: Akshata Namjoshi and Kokila Alagh.

With Matt Hamilton and Gary Sheynkman as our guest news commentators.

We discuss some unlikely stories, including you’re not a banana if you say you’re a banana and how this ties into stable coins and FinCEN, how China appears to be 'protecting' (cough cracking down cough) its crypto businesses and a quick catchup on where Telegram Open Network is heading with the SEC.

Special Guests: Gary Sheynkman and Matt Hamilton.

And what an amazing line-up he have for this episode with two amazing guests, Lawrence Wintermeyer from Global Digital Finance and Martin Bartlam from DLA Piper.

Adult supervision

After initial introductions, Ahmed recalls with Lawrence the crypto panel that took place at the World Government Summit this time last year which comprised mostly of bitcoin maximalists. This is in complete contrast to this year’s crypto panel at the World Government Summit where panel members all comprised of regulators and lawyers. Interesting how much changes in one year!

Lawrence and Martin emphasise the aspect that the crypto market is reforming and it is a time of consolidation and building before another round of excitement will come to the market again.

Why reinvent the wheel?

Most commentators would ascertain that new regulation would need to be implemented before the industry would see mass adoption. Martin, however, disagrees putting forth the viewpoint that we already have an effective regulatory framework in place and instead the market would need new infrastructures such as regulated exchanges, effective KYC procedures and custody solutions to exist before we see real traction.

In an environment of seeing the next wave of infrastructure the two guests believe that regulators and lawyers are already up to speed with recent developments in the space and are preparing for the new wave of innovations coming in the next couple years.

Let’s have a new term for STOs

Ahmed takes a crack at killing the term security tokens and STOs and the guests have slightly mixed views about this. Check out the episode to hear more!

Conquer or Partner?

Ahmed moves the conversation to see whether or not the current incumbents are able to or will bypass the current innovators and use their mass resources to move to a truly digital platform.
The guests believe that the partnership model seems to be an approach that is common in the industry and that start-ups in the future will provide very niche services. Incumbents, they argue, have gone better in researching and collectively working together to find opportunities and actively contribute to the industry.

All the above and more was discussed in this week’s episode of Encrypted. But before the ending, the two guests talk about their biggest takeaways from the World Government Summit. So do make sure to check out this episode to hear their takeaways and what they have to say.

We really hope you enjoy this episode as we worked really hard to get this specific episode recorded and yes sorry about the echoes in this episode.

If you liked what you heard, please do leave us a review on Apple Podcasts and the other platforms. Don’t forget to support us by spreading the word!

Special Guests: Lawrence Wintermeyer and Martin Bartlam.

Being the only exchange in the MENA region with on-ramp and off-ramp (i.e. exchange fiat for crypto and vice versa), Ola shares her background and past experiences before launching Bitoasis. We were impressed by it and we’re sure you will too!

First, we wanted to clear misconceptions and confusion around the ‘Virtual Currency’ ban in a policy paper that was issued by the UAE Central Bank in early 2017. With Bitoasis already being an established digital assets exchange, Ola explains how they reacted to this piece of news and how they made a clear path forward.

How can you get a crypto exchange license in the UAE?

This led the discussion to the subject of obtaining a crypto exchange license here in the UAE when there was no clear guidance or laws on running crypto asset exchanges. Ola explains their approach with licensing in the UAE, their approach with lawyers and regulators and most importantly, how they dealt with compliance. For those budding exchange entrepreneurs looking towards the MENA region, you’ll definitely learn a thing or two from Ola’s experience.

Oh and what about a bank account?

Getting bank accounts as a crypto company is not an easy task here in the UAE. Ola, however, has showcased to the region that it is doable. She explains the journey Bitoasis had with their banking relationships, the challenges they encountered and how they resolved them. Yes, relationships played a key role, but make sure to listen in to hear what else Bitoasis had up their sleeve to secure stable banking relationships for their exchange.

Ola emphasises that after the ADGM issued its exchange guidelines, regional banks have taken a more accommodating approach to banking crypto companies.

Regulatory and competitive landscape

Ola talks about her experiences engaging with regulators across the region and GCC stating that we are at a point where most crypto companies and exchanges have to classify themselves as a financial services companies and thus have to be regulated accordingly. Faisal tries to understand how Ola is trying to scale Bitoasis in the region as well as her thoughts on the regional crypto exchange competitive landscape as more exchanges are actively trying to set up shop in the UAE.

Bitoasis’ Demographics

Ola shares the demographics of Bitoasis’ platform; particularly the persona of their users and their most active regions. She also highlights that the main crypto communities are UAE, Saudi and Kuwait.

She also mentions that users are not only on the exchange to trade and invest but their users use their platform as a means of payment and micropayments through their wallet product.

Being a crypto entrepreneur in the Middle East – wait a female crypto entrepreneur

Here we try to understand Ola a bit more and how she persevered in a niche space during a time when blockchain and crypto was unheard of and typically rejected. Vision, their stakeholders, execution and being in the right city to experiment (want to hazard a guess where they experimented?) were the main factors behind their growth and success. This is an interesting part of the episode, so do make sure to tune in!

Decentralisation and data hacking

We diverted our discussion to data, how dangerous centralised data stores are for society and more specifically the paradigm shift that needs to occur to prevent incidents such as the Facebook and Cambridge Analytica case. Ola asks an interesting question: when a huge data leak happens, what is the role of government and public services?
We clearly see that it’s just a matter of time that these problems will be solved using blockchain. So if you like to hear about the philosophical side of blockchain and why it can solve the above problem, then you wouldn’t want to miss this one!

Building the infrastructure and what should be done in the region?

Ahmed asks Ola where does she see Bitoasis in 5 years time? Will they do an ICO, be an STO exchange etc?

‘Building the infrastructure; particularly the liquidity pool and education that’s needed to build an industry’ – was her answer. Very visionary and powerful!

Faisal follows up to hear Ola’s thoughts on what she thinks should be the government’s role to aid the industry and especially what should be done in the UAE and Dubai? Well, do tune in to find out.

As you can see, we talked about a lot of things and so all of the above and more will be on this week’s episode of Encrypted!

If you liked what you heard, please do leave us a review on iTunes and the other platforms. Don’t forget to support us by spreading the word!

Special Guest: Ola Doudin.

Ahmed and Faisal sit together to open the 2019 year with 4 predictions and trends the duo expect to see in the new year.

The first trend is of course the rise of Security Tokens/Digital Securities and Security Token Offerings/Digital Security offerings (yes the industry has yet to properly set key terms and definitions, and so they are being used interchangeably). They explain what they are, why they are important and what we expect to see in this space.

The second trend is all about tech implementation. This revolves more around the simple fact that many big tech implementations such as Ethereum’s Casper, main nets of popular projects and the usability of layer 2 solutions are due to launch in 2019. This will showcase whether the complementary pieces that seeks to improve some of blockchain’s weaknesses will actually show some promise. It is a huge thing to look out for as the industry is depending on the tech advancements from these grand experiments.

The third is all about education and adoption. The duo believe there will be more education and adoption about the core tenets of the technology but also from the perceived benefits that this technology brings. Ahmed argues that we need to be comfortable as a society with fully automated and truly digital experiences before decentralisation seeks to take place.

Lastly, the pair touch on regional developments and what to expect from the UAE in terms of country wide regulation and how self-regulation is happening at a governmental level.

All of the above and more will be on this week’s episode of Encrypted!

If you liked what you heard, please do leave us a review on iTunes and the other platforms. Don’t forget to support us by spreading the word!

AND

We have our feedback form abiut Encrypted, please do not forget to support us and fill it in! Tell us your thoughts about the show!

https://faisalalhawi.typeform.com/to/fxfOpk

Sources:
2019: The Year Digital Securities Offerings Become the New ICOs

Blockchain in 2019: Trends to watch

Ahmed starts off by asking about Simmons and Simmons’ journey in the blockchain and crypto space. George explains how they started their journey by working with projects to help them navigate through the grey area that still very much exists till today.
He then discusses the risk-based approach when operating in a grey area and explains why having a lack of clear definitions makes the process more difficult.

The talk moves onto the different regulatory jurisdictions and how they are different from one another when wanting to conduct an ICO or any other crypto related activity. George also does a deep dive into the difference between ICOs and STOs and lays out the process for how STOs from an equity standpoint should be conducted. Yes, lots of free advice from a lawyer!

The conversation then moves onto regulatory arbitrage or World War Regulation as the three discuss what regulatory arbitrage is, why it exists and whether or not it actually aids and adds value to the industry. Raza also talks about the regulatory arbitrage happening in MENA and how that actually aids regulators to make collaborations.

Self-regulation is another topic that was discussed during this episode as George argues the case for self-regulation and cites current examples and themes. Finally, Ahmed tries to understand how Simmons & Simmons are planning to utilise smart contracts for the future.

All of the above and more will be on this week’s episode of Encrypted!

If you liked what you heard, please do leave us a review on iTunes and the other platforms. Don’t forget to support us by spreading the word!

Special Guests: George Morris and Raza Rizvi.

He is joined by Loauy Al-Doory from Kambio Ventures and Saeed Al-Darmaki from Binary Financial to take a deep dive into the world of security tokens.

The three distil the concept of security tokens; what they are, how they operate, the problems it can solve and also its difference with utility tokens.

The taxonomy of security tokens is discussed as well as its similarity to traditional market offerings. Ahmed then starts the discussion regarding the customisation of security tokens and whether these will be breaking new ground compared to offerings from traditional markets.

Current market players operating in the space are explored as well as thoughts on the challenges we must solve which will allow security tokens to flourish and be accepted.
Louay also talks about the economics and multiplier effects and how they relate to security tokens.

All of the above and more will be on this week’s episode of Encrypted!

If you liked what you heard, please do leave us a review on iTunes and the other platforms. Don’t forget to support us by spreading the word!

Special Guests: Louay Al Doory and Saeed Al Darmaki.

Firstly, Ahmed brings up the Wall Street Journal’s article of identifying that $90 million in suspected criminal proceeds that flowed through intermediaries such as Shapeshift over two years. The discussion goes into how Monero, and more specially how these private transactions work along with explaining concepts such as zero knowledge proofs and atomic swaps.
Tarek lists the issues that the industry faces with these types of private cryptocurrencies and how these challenges can still remain with the rise of decentralised exchanges.

The conversation delves into whether or not cryptocurrencies are actually used for criminal purposes and Tarek explains the ‘know your flow of funds’ concept which has become a rising theme in the regulatory space and how it impacts exchange and OTC businesses going forward. They also explain how the Journal categorised potential addresses that were associated with criminal purposes.

Ahmed then moves onto the next topic which started as a debate on a WhatsApp group and was related to the next article covered. This article is regarding how an employee in a bank tried for many years to implement private blockchain solutions and concluded that he has lost faith in private blockchains. Faisal explains his view as someone who is helping to implement blockchain solutions at a governmental level.

The three talk about how current blockchain implementations worldwide seem to force a blockchain solution, rather than finding an alternative and better solution for a particular problem. Tarek adds that data classifications and uniformity are critical in implementing blockchain solutions at an enterprise and government level and sees this as one of the biggest challenges.
The three explain the concept of central points of failure and how these risks are increased under private permissioned implementations. Faisal also compares the incremental innovations from the disruptive innovations under these different scenarios.

The next article they cover is about Zebpay, a large Indian cryptocurrency exchange, which has decided to stop its cryptocurrency exchange operations due to the central bank banning banks servicing cryptocurrency projects making it harder for them to continue their operations.

Ahmed argues that emerging markets like India should be leading in this space and support the ecosystem. Tarek explains his experiences with emerging market regulators and how they have a wait and see approach regarding regulations and thus is harder for them to lead in a new nascent industry.
He goes on to discuss how different exchanges globally have different approaches to implementing their businesses, as some favour a more professional regulatory approach versus others who would launch services straight away without any regulation as a means to capture more market share.
The bitcoin ATMs recently installed in Area 2071 in the Emirates Towers in Dubai also gets a shout out due to the Central Bank of the UAE only allowing registered customers to buy and sell up to 1000 AED ($200-300) worth of cryptos per day and Tarek argues this is a good first step for the local industry rather than indirectly banning innovation as with the case of the Central Bank of India.

All of the above and more will be on this week’s episode of Encrypted!

If you liked what you heard, please do leave us a review on iTunes and the other platforms. Don’t forget to support us by spreading the word!

Sources:
How Dirty Money Disappears Into the Black Hole of Cryptocurrency
How I Lost My Faith in Private Blockchains
‘Extremely Difficult’ Conditions: India’s Zebpay Shutters Crypto Exchange Over Central Bank Ban

Special Guest: Tarek Moahmmed.

First up, Ahmed interviews the CEO of the ADGM Financial Services Regulatory Authority, Richard Teng.

They talk about the 3-year-old financial free trade zone, Abu Dhabi Global Markets (ADGM), and how it differs itself as a financial and fintech hub for the region.

Richard explains the regulatory sandbox that was recently implemented at the ADGM, also known as the RegLab, and how it aims to facilitate innovation through providing a relaxed regulatory environment and a test bed for new fintech business models and start-ups.

Richard further explains the fintech bridges they have built with overseas regulatory sandboxes that are similar in nature with the aim of increasing fintech adoption globally and also helping to close the funding gap between investors and start-ups.

Delving into the blockchain and crypto landscape, Richard discusses how the ADGM are building a comprehensive framework for this new industry comprising of exchanges, ICOs, ETFs and more.

Ahmed then enquires about how traditional capital from family offices and sovereign wealth funds will start to invest and take positions into this new asset class.

Next up, Ahmed is joined by Austin Alexander from the CEO’s office of Kraken and Dan Donny, the CEO of Securrency.

Ahmed gets straight into why both guests view the Abu Dhabi Global Markets as an attractive jurisdiction for blockchain and cryptocurrency companies. It is noteworthy that being able to go into great detail with forward thinking regulators is seen as a unique attribute when compared to other regulatory authorities across the world.

The three then go into the evolution of institutional money flowing into crypto and discussing the potential of when Wall Street money sitting on the side-lines will actually help mature the markets. Dan addresses the challenges that need to be addressed before institutional money flows in.

The concept of self regulated organisations (SROs) are explored too as well as the feasibility of ETFs being potentially a minor factor in bringing in new capital and funds into this space.

Ahmed opens up the discussions on security tokens and how important they will be moving forward as well as exploring their potential use cases in our guests’ respective businesses.

All of the above and more will be on this week’s episode of Encrypted!

If you liked what you heard, please do leave us a review on iTunes and the other platforms. Don’t forget to support us by spreading the word!

Special Guests: Austin Alexander, Dan Doney, and Richard Teng.

Aniket gives a general overview of the current market state in India as he touches upon, the current challenges and the ever delaying regulation regarding crypto-assets and exchanges.

Ahmed shares his experience about the conference, the interesting projects he met and also the panel he was invited to speak at along with the IT Director of the Government of Goa.

The duo also tries to answer what could lie ahead in India’s blockchain story?

All of the above and more will be on this week’s episode of Encrypted!

If you liked what you heard, please do leave us a review on iTunes and the other platforms. Don’t forget to support us by spreading the word and do not forget to subscribe!

Sources:
Indian Crypto Regulation Ready by September: Official

They discuss:
• His very interesting flippening moment (jargon for how someone got interested in bitcoin and blockchain)
• Advice on how to the enter the industry
• Different applications utilised by blockchain and the Dubai Blockchain Strategy

They also delve into how the Dubai Blockchain Center is helping Dubai become a global blockchain capital and how blockchain entrepreneurs can get support from the Center. Also, cryptocurrency regulation is a hot topic where they discuss how the UAE is fairing against the world, especially on the back of a new crypto OTC license that has recently been made available in the region allowing for regulated crypto OTC desks.

All of the above and more will be on this episode of Encrypted Interviews!

If you liked what you heard, please do leave us a review on iTunes and the other podcast platforms. And if you found it helpful or know someone who will, spread the knowledge and tell them to tune in!

Additional resources:
Dubai Blockchain Center
Smart Dubai Blockchain Strategy

Special Guest: Dr. Marwan Alzarouni .