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M2 crypto exchange to allow UAE residents to trade crypto using bank accounts

  • M2 enables UAE residents to trade BTC and ETH directly with bank accounts.
  • Integration supports dirham deposits, withdrawals, and market-responsive trading.
  • UAE has strict regulations to ensure consumer protection and market transparency.

In a significant development for the digital asset market in the United Arab Emirates (UAE), M2, a prominent crypto exchange, has announced that UAE residents can now buy and sell Bitcoin (BTC) and Ethereum (ETH) directly using their bank accounts.

This new integration facilitates the direct conversion of UAE dirhams into BTC and ETH through M2’s spot market, marking a milestone in the accessibility of virtual assets in the region.

M2 users can seamlessly convert dirhams into BTC and ETH and vice versa

In an announcement shared with Cointelegraph, the M2 exchange highlighted that the new feature will enable users to convert dirhams into Bitcoin and Ether seamlessly through the trading pairs listed on M2’s spot markets.

Additionally, the platform supports the deposit and withdrawal of dirhams, offering users greater flexibility in managing their assets.

The M2 team emphasized that this integration would enable users to “swiftly adapt to market changes,” allowing them to easily convert their local currency into crypto.

This is particularly beneficial for everyday investors who may not be fully immersed in the complexities of the trading environment.

According to M2, the higher levels of familiarity and significant trading volumes of BTC and ETH make these cryptocurrencies ideal entry points for new investors looking to enter the digital asset space.

UAE has the strictest regulatory framework globally

Regulated by the UAE government, which is known for its stringent consumer protection measures, this move reflects the country’s commitment to safeguarding its residents in the evolving crypto landscape.

The UAE has established a reputation for having one of the strictest regulatory frameworks globally, prioritizing consumer protection. In 2022, Dubai’s Virtual Asset Regulatory Authority (VARA) mandated greater transparency in crypto advertisements to better protect consumers.

Moreover, in 2023, the UAE introduced a federal law aimed at preventing fraud in the crypto market, imposing fines of up to 10 million AED ($2.7 million) for violations.

Commenting on the integration, Kimmel, an executive at M2, noted that the ADGM’s licensing process was demanding due to its high standards for multilateral trading facility permits. However, he affirmed that this rigorous due diligence ensures that licensed platforms meet the country’s security and transparency standards, thereby fostering trust among UAE users.

Despite the challenges associated with the licensing process, the UAE continues to be a strategic region for the crypto industry.

Favourable tax policies, access to global markets, and a safe environment for innovation make the UAE an attractive destination for crypto businesses.

This new development by M2 is set to further enhance the accessibility and appeal of virtual assets in the UAE, making it easier for residents to participate in the burgeoning crypto market.

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US SEC approves Ethereum ETFs, Grayscale spot Ether ETFs launch on NYSE Arca

  • US SEC approves Ethereum ETFs after years regulatory process.
  • Grayscale has launched two spot Ether ETFs on NYSE Arca after the SEC’s approval.
  • The SEC has also approved VanEck Ethereum ETF.

In a landmark decision for the cryptocurrency investment space, the US Securities and Exchange Commission (SEC) has granted approval for Grayscale and VanEck Ethereum exchange-traded funds (ETFs), paving the way for broader institutional and retail investor access to Ethereum (ETH).

This move marks a significant milestone in the regulatory landscape for digital assets in the United States.

‘Notice of Effectiveness’ for VanEck Ethereum ETF

The VanEck Ethereum ETF, which has been in the pipeline for over three years, received its “Notice of Effectiveness” on July 22, 2024.

This regulatory green light follows a protracted process of filings and amendments, including the crucial S-1 registration form and Rule 424(b)(3) prospectus, which were amended several times to meet SEC compliance requirements, detail the ETF’s structure and offerings.

VanEck’s approval comes amid a flurry of activity in the crypto ETF sector. Ether ETFs from BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, and Invesco Galaxy were also approved to begin trading on Tuesday, July 23.

This development further highlights the growing acceptance of cryptocurrency-based investment products in traditional financial markets.

Two Grayscale Ether ETFs launch on NYSE Arca after SEC’s greenlight

While a majority of the submitted Ethereum ETFs were approved on July 22, the Grayscale’s Ethereum ETFs remained unapproved until July 23 morning when they were approved.

Immediately after their approval, the two Ether ETFs were launched on NYSE Acra.

Grayscale’s ETFs, the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (ETH), began trading on July 23, 2024.

The ETHE, which is currently the world’s largest Ether-based ETF with $9.19 billion in assets, will charge investors a 2.5% management fee.

In contrast, the Ethereum Mini Trust has waived its fees for the first six months or until it accumulates $2 billion in assets, after which a 0.15% fee will apply, making it the most cost-effective spot Ether ETF available in the U.S.

John Hoffman, Grayscale’s managing director, emphasized the transformative potential of these ETFs, stating, “ETH and ETHE will allow investors to tap into Ethereum’s ability to create markets, reshape financial systems, and drive innovation through decentralized finance (DeFi) and other applications, all without the need to directly manage Ether.”

In preparation for the ETF launches, Grayscale transferred over $1 billion worth of Ether to Coinbase on July 22. This transfer was crucial for aligning with the new product structure and mitigating potential outflows from existing investors.

Notably, ETHE holders will receive the new Ether-backed product at a 1:1 ratio, avoiding any capital gains tax implications.

Analysts predict the approval of Ethereum ETFs could spur ETH price surge

The SEC’s approval and the subsequent launch of these ETFs signal a burgeoning acceptance of cryptocurrency assets in mainstream financial products.

Market analysts, including Bloomberg’s James Seyffart, anticipate that these ETFs could attract substantial investment flows, potentially driving Ether’s price higher.

Some experts, like Bitwise’s Matt Hougan, forecast that Ether’s price might surpass its all-time high, projecting a rise to over $5,000 by the end of 2024.

At press time, Ethereum (ETH) was trading at $3,513.09 up from a low of $3,384 on July 19.

The advent of these regulated Ethereum investment vehicles represents a significant step forward for the cryptocurrency market, offering new opportunities for investors and reflecting an evolving regulatory approach to digital assets.

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SEC directs final S-1 submissions for Ether ETFs with target launch on July 23

  • SEC mandates final S-1 filings for Ether ETFs by July 16, launch set for July 23.
  • Invesco, Galaxy set fees at 0.25%; VanEck, Franklin Templeton at 0.20% and 0.19% respectively.
  • Analysts predict Ether ETFs could attract $5 billion to $10 billion in new inflows.

The United States Securities and Exchange Commission (SEC) has issued final directives to asset managers poised to launch Ethereum exchange-traded funds (ETFs). As reported by Bloomberg analyst Eric Balchunas, the SEC requires issuers to submit their finalized S-1 filings by July 16, with a targeted launch date for the new Ether ETFs set for July 23.

The filings must detail the management fees that will be charged.

This move follows the SEC’s approval on May 23 of issuers’ 19-b form, which proposed rule changes to permit crypto-based investment vehicles.

Now, asset managers are required to obtain approval for their initial securities registration S-1 forms, marking a significant step toward the official launch of Ether ETFs.

Several prominent financial institutions are competing for SEC approval and the opportunity to introduce Ether ETFs to the market. Notable names include BlackRock, Grayscale, Fidelity, ARK 21Shares, Invesco Galaxy, VanEck, Hashdex, and Franklin Templeton.

Firms have set varying Ethereum ETF fee structures

Invesco and Galaxy have set their management fees at 0.25%, slightly higher than those of VanEck and Franklin Templeton, which have disclosed fees of 0.20% and 0.19%, respectively.

However, these fees are considerably lower than the 2.50% management fees charged by Grayscale’s existing Ethereum Trust.

Grayscale, which plans to launch a new spot Ethereum ETF, has yet to disclose its new fee structure.

This competitive fee landscape is expected to benefit investors, making Ether ETFs an attractive option for those looking to gain exposure to Ethereum.

Lower fees can enhance overall returns, particularly in the long term, and are likely to attract a broad base of investors.

Potential market impact of Ether ETFs’ approval

The SEC’s approval process for Ether ETFs is anticipated to follow a trajectory similar to that of Bitcoin ETFs. Analysts predict that Ether ETFs could draw substantial interest from investors, potentially attracting up to $10 billion in new inflows in the months following their launch.

Tom Dunleavy, a managing partner at crypto investment firm MV Global, has suggested that the success of Bitcoin ETFs, which saw $15 billion in flows, indicates a promising future for Ether ETFs. He estimates that Ether ETFs could see inflows ranging between $5 billion and $10 billion.

The introduction of Ether ETFs marks a significant milestone in the cryptocurrency investment landscape. It represents a step toward greater mainstream acceptance and accessibility of digital assets, providing investors with new opportunities to diversify their portfolios.

As the July 23 launch date approaches, all eyes will be on the SEC and the asset managers vying for approval, eager to see the impact of these innovative investment products on the market.

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Dough Finance flash loan attack: What we know so far

  • Dough Finance lost $1.8M in a flash loan attack due to smart contract vulnerability.
  • Attacker exploited unvalidated calldata stealing USDC before converting the assets into 608 ETH.
  • Users urged to withdraw funds to secure wallets.

Dough Finance has fallen victim to a significant flash loan attack, resulting in a staggering loss of digital assets worth approximately $1.8 million.

The attack, which exploited vulnerabilities in the protocol’s smart contract, highlights ongoing security challenges within the cryptocurrency space, and specifically within the DeFi space.

What happed in the Dough Finance attack?

The attack, detected on July 12 by Web3 security firm Cyvers, targeted Dough Finance’s “ConnectorDeleverageParaswap” smart contract.

This contract, designed to facilitate transactions within the DeFi platform, failed to adequately validate call data during flash loan executions giving the attacker a chance to manipulate transaction details and illegally transfer of 608 Ether (ETH), valued at approximately $1.8 million at the time of the attack.

The funds, originally in the form of USD Coin (USDC), were swiftly converted into ETH using the zero-knowledge protocol Railgun, complicating efforts to trace and recover the stolen assets.

Who were affected by the flash loan attack?

The Dough Finance flash loan attack primarily affected users who had funds deposited in the exploited contract of Dough Finance.

While the lending pools of Aave, another prominent DeFi platform, remained unaffected, the incident underscores the vulnerability of smart contracts and the potential risks associated with decentralized finance protocols.

Security experts, including Olympix, emphasized the importance of users withdrawing their funds to secure wallets and refraining from interacting with Dough Finance until the platform issues clear guidance on safety measures.

Remarkably, the attack on Dough Finance adds to a concerning trend of security breaches plaguing the cryptocurrency industry in 2024.

According to a recent report by CertiK, on-chain attack incidents have already led to losses exceeding $1.19 billion in the first half of the year, with phishing attacks and private key compromises contributing significantly to these figures.

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Ethereum Name Service (ENS) price jumps on rebranding news

  • Ethereum Name Service rebranding has sparked market excitement
  • ENS has surged by 8.48% to $28.46 over the past 24 hours as its trading volume hits $196.7M.
  • Analysts cite bullish signals, potential for ENS to surpass previous highs post-rebrand.

Ethereum Name Service (ENS) has seen a substantial surge in its market value following the announcement of an upcoming rebrand.

At press time, Ethereum Name Service was trading at $28.46, marking an 8.48% increase in the past 24 hours. ENS’s market cap has climbed to approximately $899.7 million, reflecting heightened investor interest and trading volume of $196.7 million over the past 24 hours.

Notably, despite its recent gains, ENS remains below its all-time high of $85.69, achieved in November 2021, highlighting potential room for further growth if bullish sentiment continues.

Ethereum Name Service rebranding

The Ethereum Name Service (ENS), a decentralized naming system built on the Ethereum blockchain, enables users to acquire and manage human-readable names linked to various digital identifiers.

ENS’ unique functionality distinguishes it from traditional Domain Name Systems (DNS), offering a decentralized alternative governed by smart contracts and a Decentralized Autonomous Organization (DAO).

Today, ENS announced that it will be unveiling their new brand at the upcoming Ethereum Community Conference (EthCC) in Brussels that is scheduled to take kick off on July 8, 2024.

Today’s rebranding announcement is the primary factor for today’s price surge amid the market anticipation for the new brand.

Secondly, the EthCC is a prominent event in the Ethereum community, attracting leading figures and developers to discuss the platform’s future and innovations, and it also has an impact on the value of Ethereum (ETH) and the Ethereum-based tokens like ENS.

As the cryptocurrency ecosystem evolves, ENS’s innovative approach to decentralized naming systems positions it uniquely within the blockchain space, promising continued interest and potential growth moving forward.

Investors and enthusiasts alike will be closely watching developments at the upcoming EthCC for further insights into ENS’s future trajectory.

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