Asia & MENA Crypto: $80M Investment

The Asia and MENA regions are experiencing significant developments in the crypto world, with key updates ranging from major investments to new regulatory changes. Story Protocol, a blockchain startup, has secured $80 million in funding to protect creators' intellectual property (IP) in the AI-driven digital economy. This investment coincides with a groundbreaking legal decision in Dubai, where cryptocurrency has been officially recognized as a valid form of salary payment.

On August 19, Bitpanda Technology Solutions (BTS) and The National Bank of Ras Al Khaimah (RAKBANK) finalized a partnership to enhance access to digital assets in the UAE. This collaboration will allow UAE residents to securely manage various digital assets, enabling banks to engage in the virtual asset economy without needing to develop their own capabilities. The success of this initiative hinges on the operational approval of Bitpanda Broker MENA DMCC by the Virtual Assets Regulatory Authority (VARA) and RAKBANK's approval from the Central Bank of the UAE (CBUAE).

In a notable investment, venture capital firm Andreessen Horowitz (a16z) led an $80 million Series B funding round for PIP Labs, the creator of Story Protocol. This funding, which also attracted investors like Polychain Capital and HYBE founder Bang Si-hyuk, has boosted PIP Labs' valuation to over $2.2 billion. Story Protocol helps creators protect their intellectual property by providing a platform to register IP, set usage terms, and receive compensation, addressing the growing issue of AI-driven copyright theft.

Story Protocol was co-founded by Jason Zhao, a former product manager at Google's AI lab DeepMind, and South Korean entrepreneur Lee Seung-Yoon, who previously sold his mobile fiction platform Radish for $374 million. With over 200 entities already registered and more than 20 million intellectual properties protected, Story Protocol is preparing for its mainnet launch, aiming to become a cornerstone for future internet content creation and monetization.

Meanwhile, the Dubai Court of First Instance has recently recognized cryptocurrency as a legitimate form of salary payment under employment contracts. This ruling is based on Article 912 of the UAE Civil Transactions Law and the Federal Decree-Law No. 33 of 2021. The case involved a wrongful termination and unpaid wages claim, where the plaintiff’s contract specified a salary in fiat currency and additional payment in EcoWatt tokens, a form of cryptocurrency. The court ruled in favor of the employee, validating the payment in EcoWatt tokens despite the employer's objections.

In Malaysia, authorities have stepped up their crackdown on illegal Bitcoin mining. On August 19, 985 Bitcoin mining machines valued at approximately $452,500 were destroyed by Malaysian authorities. The machines were seized during enforcement operations from 2022 to April 2023 and were crushed in the Perak Tengah district. Seven individuals involved in illegal Bitcoin mining, which included electricity theft, were arrested, including three local residents and four foreign nationals.

Sepang District Police Chief ACP Wan Kamarul Azran Wan Yusof noted that these individuals had no prior criminal records but caused significant losses to the country. Malaysia is estimated to have lost up to 3.4 billion Malaysian ringgits (around $757 million) between 2018 and 2023 due to electricity theft linked to Bitcoin mining. Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir emphasized the growing problem and its impact on Tenaga Nasional Berhad (TNB) and the country.

In another significant development, Tether, a leading stablecoin issuer, has partnered with Phoenix Group PLC to introduce the first stablecoin linked to the UAE dirham. This initiative, supported by Green Acorn Investments Ltd., aims to revolutionize the digital asset sector by combining the stability of the UAE dirham with blockchain technology. The stablecoin is expected to play a key role in enhancing business operations and growth opportunities in the digital economy.

Backed by Phoenix Group and Tether's financial strength and technical expertise, this stablecoin will follow strict regulatory compliance procedures aligned with the UAE's regulatory framework. This stablecoin is set to be globally accessible, firmly rooted in the UAE’s economic stability, offering a reliable digital currency for the future.

These developments across Asia and MENA highlight the region's active role in the evolving crypto landscape, reflecting both regulatory advancements and significant technological innovations.