Crypto boss of PWC founds digital asset funds in Dubai

The worldwide crypto leader of PWC has given up his role in the company to found a fund for digital assets in Dubai, which highlights how the city attracts crypto companies, while other perceived centers such as Singapore and Seoul are taking a close look at the sector.

Henri Arslanian told the Financial Times that Dubai's "crypto-openness" had influenced his decision to found his fund for digital assets Nine Blocks Capital Management in the city, where he was given preliminary official approval.

The fund for digital assets, which is received $ 75 million from its main supporter and main shareholder Nine Masts Capital, a hedge fund based in Hong Kong, has also positioned three portfolio managers on the quays.

The fund's presence in Dubai takes place, while the city drives its establishment as a crypto hub after Asian financial centers such as Singapore and Hong Kong have apparently chilled the sector in the wake of a steep market crisis and a wave of corporate collapse.

"Hong Kong would have been a natural home for us," said Arslanian and added that Nine Blocks also thought of Singapore.

"When we looked at the broader ecosystem. Hong Kong still has an obligatory hotel quartan for most international travelers.

Arslanian, who will keep a position as a senior advisor at PWC, said he had already moved to Dubai. He added that the fund may later add a base in Asia, but the travel connections and the time zone of Dubai, which is only four hours behind Singapore, simply made it to cover the region.

Dubai's crypto advance follows the competing regional nodes Singapore, Hong Kong and Seoul, which increasingly take a closer look at the emerging industry.

Sopnendu Mohany, Chief Fintech Officer of the Monetary Authority of Singapore, said in June that the city state would be "brutally and relentlessly hard" against bad crypto behavior.

Just a few days later, Singapore Wachhund Three Arrows Capital, a once prominent crypto hedge fund, collapsed after a credit crisis had hit the market for digital assets.

Dubai has opened its doors for some of the largest crypto participants. Last year, the Binance stock exchange announced a license for virtual assets from the supervisory authorities in Dubai, while the competing Börse FTX only announced last week that it was approved for the operation in jurisdiction.

Arslanian said that the city's “animal one” regulatory and license system made it attractive for funds, such as its, who hope to attract institutional investors.

In the past two months, Komainu, a crypta group supported by the Japanese investment bank Nomura, has received preliminary approval from the regulatory authority for digital assets of the city, while the CoinMena crypto tour has been given a preliminary license.

"I think it is the most attractive goal for many large crypto companies," said Carlton Lai, head of blockchain and cryptocurrency research at Daiwa Capital Markets, and added that the city acted "very quickly" to award licenses.

"Compare this to countries like Singapore and Hong Kong, things have not only developed very slowly, but there were numerous regulatory flip-flops that simply reduce trust in their regulatory direction," he added.