{"id":515769,"date":"2022-11-25T12:49:45","date_gmt":"2022-11-25T09:49:45","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-does-the-ftx-collapse-affect-dubais-crypto-ecosystem\/"},"modified":"2022-11-25T12:49:45","modified_gmt":"2022-11-25T09:49:45","slug":"how-does-the-ftx-collapse-affect-dubais-crypto-ecosystem","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-does-the-ftx-collapse-affect-dubais-crypto-ecosystem\/","title":{"rendered":"# How does the FTX collapse affect Dubai&#8217;s crypto ecosystem?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2de1e9bc154\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2de1e9bc154\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-does-the-ftx-collapse-affect-dubais-crypto-ecosystem\/#%E2%80%9D_How_does_the_FTX_collapse_affect_Dubais_crypto_ecosystem_%E2%80%9C\" >&#8221; How does the FTX collapse affect Dubai&#8217;s crypto ecosystem? &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_How_does_the_FTX_collapse_affect_Dubais_crypto_ecosystem_%E2%80%9C\"><\/span>&#8221; How does the FTX collapse affect Dubai&#8217;s crypto ecosystem? &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvY2JjNjY1NTctNmRmYS00ZTMxLTk4MTgtYjI5Yzg5OWQ5MDQyLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5129e2ea>With the FTX contagion affecting various sectors of the global crypto ecosystem, Dubai-based industry leaders commented on how the debacle will affect the budding crypto hub within the United Arab Emirates (UAE).\u00a0<\/p>\n<p>From stricter regulations to better projects leading the way, various professionals gave their perspectives on how Dubai and the UAE\u2019s crypto landscape will be affected by the collapse of the FTX exchange. <\/p>\n<p>Kokila Alagh, the founder and CEO of KARM Legal Consultants, believes that the FTX collapse will lead to more scrutiny and diligence before projects are <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roved within Dubai\u2019s licensing process. She explained that: <\/p>\n<blockquote><p>\u201cWith the misuse of funds or limited disclosures by FTX, these licensing authorities now need to deep dive into the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>. Mere financial documents submission won&#8217;t be enough, continuous and a real-time monitoring of these platforms might be one of the ways forward.\u201d<\/p><\/blockquote>\n<p>Alagh also told Cointelegraph that the FTX collapse may lead to better projects taking the lead within the space. \u201cAny major setback in a growing sector makes way for stronger projects to lead and clear the projects which do not have a strong foundation,\u201d she added. <\/p>\n<p>Irina Heaver, a partner at Keystone Law Middle East, also believes that tighter regulations are on the way. Heaver told Cointelegraph that founders must be prepared for greater scrutiny from the authorities as well as from users and investors. She explained that: <\/p>\n<blockquote><p>\u201cThey also each must implement stricter internal compliance and audit functions, consult a lawyer if in doubt, and take additional steps, beyond those currently required, to prove to the users that the project is doing the right thing.\u201d<\/p><\/blockquote>\n<p>According to Heaver, the authorities must also consider taking a good look at influencers who promote \u201crug pulls, pump and dump schemes, and bogus token sales.\u201d Citing shark tank star Kevin O\u2019Leary\u2019s promotions of FTX exchange and how people may have put their funds in FTX after being convinced, Heaver believes that promoters must also face scrutiny. <\/p>\n<p>Meanwhile, Talal Tabbaa, the CEO of CoinMENA, a trading platform that <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.thenationalnews.com\/business\/cryptocurrencies\/2022\/06\/16\/bahrains-coinmena-receives-provisional-licence-to-operate-in-dubai\/\">secured<\/a> a provisional license from VARA, said that Dubai\u2019s history is full of examples of big challenges and rising to the occasion. He explained that: <\/p>\n<blockquote><p>\u201cThe collapse of one company won&#8217;t change the vision of the UAE to become a global crypto hub. In fact, the FTX incident confirms how important it is to have a comprehensive regulatory framework in place.\u201d<\/p><\/blockquote>\n<p>The executive also pointed out that Luna, Voyager, Celsius and FTX incidents were failures of governance and effective risk management and not a failure of crypto. &#8220;They were institutional failures rather than technical failures,&#8221; he noted. According to Tabbaa, this distinction is very important. <\/p>\n<p>The CoinMENA CEO also compared the incident to the dot-com bubble. According to Tabbaa, when the dot-com bubble burst, it was not a problem of the internet but a failure of companies building on the internet. The executive noted that the same thing applies to the crypto space at the moment. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>The FTX contagion: Which companies were affected by the FTX collapse?<\/em><\/strong><\/p>\n<p>The FTX exchange has been one of the earliest exchanges to secure an approval from the Dubai Virtual Asset Regulatory Authority (VARA), a regulator overseeing virtual asset service providers that aim to operate locally. In July, the FTX exchange was approved under the Minimum Viable Product (MVP) program to proceed with testing and operations. <\/p>\n<p>However, given the circumstances surrounding the FTX exchange, VARA has recently revoked the approvals for FTX\u2019s local counterpart, FTX MENA. The regulator also confirmed that the entity has not yet gotten approval to onboard clients, confirming that no clients were exposed yet. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/how-does-the-ftx-collapse-affect-dubai-s-crypto-ecosystem\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; How does the FTX collapse affect Dubai&#8217;s crypto ecosystem? &#8220; With the FTX contagion affecting various sectors of the global crypto ecosystem, Dubai-based industry leaders commented on how the debacle will affect the budding crypto hub within the United Arab Emirates (UAE).\u00a0 From stricter regulations to better projects leading the way, various professionals gave&#8230;<\/p>\n","protected":false},"author":1,"featured_media":515770,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvY2JjNjY1NTctNmRmYS00ZTMxLTk4MTgtYjI5Yzg5OWQ5MDQyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,135234,77146,71644,55229,70934],"class_list":["post-515769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-ftx","tag-uae","tag-dubai","tag-law","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/515769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=515769"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/515769\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/515770"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=515769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=515769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=515769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}