IOTA continues strategic expansion by registering the IOTA Ecosystem DLT Foundation worth $100 million in the UAE.
IOTA’s $100M MENA Expansion
The IOTA Foundation has marked a significant milestone by officially registering its Distributed Ledger Technology (DLT) Foundation in the United Arab Emirates (UAE). This move is part of the foundation's strategic expansion plan in the Middle East and North African (MENA) market, a region witnessing a burgeoning interest in digital assets.
To facilitate this expansion, the IOTA Foundation has allocated a substantial fund of $100 million worth of IOTA tokens. These funds are earmarked for a four-year vesting period, emphasizing a long-term commitment to the region. The primary objective is to nurture innovation and drive the adoption of the IOTA protocol within the MENA market.
Diverse Allocation for Holistic Growth
A notable aspect of the fund allocation is its diversified focus. The resources will not only support the foundation's expansion but also contribute to community-driven projects and regulatory synergy. Particularly, emphasis will be placed on initiatives related to IOTA and Shimmer, the foundation's staging network.
Impact on IOTA Price
The official registration of the IOTA Ecosystem DLT Foundation in the UAE had an immediate and noteworthy impact on the IOTA token's market value. Following the announcement on Wednesday, the token experienced a remarkable 50% surge, reaching 25 cents from its previous value of 17 cents. This spike underlines the positive market sentiment and investor confidence in IOTA's strategic moves.
Maintaining Regulatory Compliance
The IOTA Ecosystem DLT Foundation is claiming that it is the "first" foundation registered under the DLT Foundations Regulations, established by the financial watchdog ADGM.
Dominik Schiener, co-founder of IOTA, highlighted the broader significance of this move in aligning with regulatory developments.
He stated,
“The IOTA Foundation’s support from ADGM and our partnership with UAE authorities is about more than global expansion. It’s about ushering in a new era of regulatory synergy in the crypto markets. We want to ensure that we take the right steps toward digital autonomy for everyone, and that means making sure a diversity of communities take an active role in shaping the Foundation’s technology and governance.”
Abu Dhabi's Crypto-Friendly Ecosystem
IOTA's registration aligns with a broader trend in Abu Dhabi, where regulatory authorities are actively approving crypto-related firms. Notably, Paxos received approval to operate in the Emirati city on the same Wednesday. Liminal, a digital asset custody and wallet infrastructure provider, also secured an in-principle approval from ADGM earlier in the month.
These approvals are part of Abu Dhabi's strategic push to position itself as a crypto-friendly hub. Earlier this year, the emirate announced a substantial investment of approximately $2 billion into web-3 and blockchain startups. This financial commitment underscores Abu Dhabi's determination to attract and nurture blockchain builders within its economic free zone.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
