M2 at Future Blockchain Summit

M2 at Future Blockchain Summit

Part of the wider GITEX program, the Future Blockchain Summit delivered a definitive experience for those seeking to know more about the UAE’S blockchain movement, wider Web3 economy, and get a sense check on the region’s appetite.

With the UAE on track to be the world’s leading region for virtual assets, this year’s Future Blockchain Summit was poised to be a place for serious discussion, of which it delivered. With big tech, dynamic startups, government entities, and all who are playing a key role in the advancement and adoption of blockchain and virtual assets both in the UAE, and further afield, converging to share their experience and insight. Knowing that adoption is one best powered collectively.

Navigating Global Regulations: DeFi and Centralized Exchanges in Focus

Our Chief Product Officer Sudhu Arumugam, sat alongside Robert Kopitsch (Co-Founder and Secretary General, Blockchain for Europe), Irina Heaver (Partner – Web3 & Digital Assets, NEOSLEGAL) and Nicholas McNicholas (Senior Director, Enforcement and Regulatory Affairs Virtual Assets Regulatory Authority) ready to explore the distinct strategies required for regulating centralized and decentralized (DeFi) exchanges across the US, Europe, and Asia.

A collective and shared observation? Centralized environments offer more control and enable better supervision, meaning stronger compliance cultures operate internally. While in DeFi, the inherent structure doesn’t speak to adequate KYC and due diligence checks. Meaning that for DeFi to succeed, a better understanding is needed, not just by regulatory bodies, but for those behind it to proactively engage with, and educate regulators. It’s an approach successfully taken by centralized exchanges that can serve as a footprint for DeFi.

The tremendous need for an international framework was recognized, but it was agreed that until it arrived, the onus sat upon different bodies to converse with one another. A step VARA is already taking by working closely with the ADGM, Dubai Police and other regional stakeholders.

The point was also collectively made that for both exchanges to succeed, a balanced, open and curious approach was required, one currently employed by the ADGM. Who promote consumer protection while still leaving room for innovation.

On the convergence of both the centralized and decentralized, Sudhu highlighted that when frameworks only support a certain number of tokens, and there are thousands more being created, it’s a tough task (and ask) for both regulators and operators to track. Noting that the challenge will be for all three to work on compliant integrations, so both models can coexist effectively.

The Adoption of Virtual Assets by Institutional and VIP Traders in UAE

Sudhu Arumugam then joined Cointelegraph’s Kristina Lucrezia Corner to share his insights into the current wants the M2 institutional team are encountering from family offices and hedge funds in the region.

The main message? It's about creating a transparent place to store funds and trade assets. One where market leading sustainable yields that guard against volatility are available, and arrive with strict regulatory compliance, but also an insurance backed trading experience. Noting that in the past, insurance on crypto assets was either unavailable or unfavorable. While today, premiums are more affordable, and there’s a need for centralized exchanges (CEX) to offer guaranteed asset backing to garner trust and market participation.

Sudhu also predicted that for the UAE to continue gaining momentum as one of the world’s top regions, regulation and innovation will need to continue conversing. And that striking the right balance will not just be critical to the success (or failure) of many platforms, but the wider region, as institutional traders in particular seek an interesting mix of products to engage with.

He made a point that regardless of a client’s wallet size, or funds on platform, customer experience is non-negotiable. Sharing that the M2 team is currently working AI into our chatbot systems to improve client interactions.

To be the first to know about the latest M2, you can connect with us on X, Telegram, YouTube, Instagram and Facebook.