GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- UAE Eliminates VAT on Crypto to Boost Industry Growth

- Telegram Introduces Gift Feature with $TON NFTs and Tap2Earn Ecosystem

- Coinbase Appeals for Joint Case with Ripple Against SEC

- Lego's Website Hacked to Promote 'Lego Coin' Crypto Scam

- DMCC and CVVC Join Forces to Boost Web3 Innovation

- U.S. Election Betting: Regulated Markets Challenge Polymarket

UAE Removes VAT on Crypto Transfers and Conversions, Strengthening Its Position as a Global Crypto Hub

The United Arab Emirates (UAE) has announced a significant change to its tax policy, exempting cryptocurrency transfers and conversions from value-added tax (VAT), effective retroactively from January 1, 2018. This move is part of the UAE’s broader strategy to promote the digital asset industry and establish itself as a global crypto hub. The amendment enhances the competitiveness of the UAE’s regulatory environment, making it more attractive for international crypto projects.

PwC has advised crypto firms operating in the region to reassess their past tax activities for potential input tax recovery, which may necessitate voluntary disclosures to correct past filings. Dubai’s Virtual Asset Regulatory Authority (VARA) has simultaneously updated its guidelines, mandating disclaimers on all crypto promotions to caution investors about associated risks. This combination of tax relief and regulatory clarity positions the UAE as a forward-thinking destination for cryptocurrency businesses seeking a transparent, low-tax environment.

Telegram to Launch Gift Feature with NFT Integration on $TON Blockchain, Revolutionizing Gaming and Collecting Experience

Telegram CEO Pavel Durov announced a new Gift feature allowing users to display gifts on their profiles or sell them in exchange for Stars. Some gifts will be limited edition, with plans to convert them into $TON-based NFTs later this year, expanding Telegram's ecosystem into the world of non-fungible tokens (NFTs). Nakamoto Games has expressed strong support for this development, particularly as they are already leading in $TON NFT support through their $NAKA wallet.

This wallet enables users to mint and manage NFTs directly within Telegram, simplifying the process for gamers and collectors. The integration is seen as a major step forward in merging gaming, NFTs, and messaging platforms, creating a seamless experience. Additionally, Nakamoto Games teased an upcoming launch of the biggest Tap2Earn ecosystem on Telegram, adding another layer of innovation to the platform. This feature is poised to reshape the interaction between gaming and digital collectibles on one of the world’s largest messenger platforms.

Coinbase Seeks Judge’s Approval to Present Interlocutory Appeal Alongside Ripple, Aiming for Unified Challenge to SEC's Crypto Stance in the 2nd Circuit

Coinbase has requested a judge to certify its interlocutory appeal, enabling it to present its case in the 2nd Circuit Court of Appeals alongside Ripple. This strategic move aims to provide the court with a holistic view of what both Coinbase and Ripple argue is the Securities and Exchange Commission's (SEC) unlawful approach to regulating the crypto industry. If approved, the combined cases could significantly influence the 2nd Circuit's assessment of the SEC’s regulatory tactics toward digital assets.

Both companies have been engaged in high-profile legal battles with the SEC, accusing the agency of overstepping its authority in classifying certain cryptocurrencies as securities. Coinbase's move reflects a broader industry effort to challenge the SEC's rigid stance on crypto, potentially setting a landmark legal precedent. Industry insiders believe this appeal will be granted, providing a unified front to address ongoing regulatory uncertainties. A favorable ruling could reshape the regulatory landscape for the crypto sector, reducing friction between innovators and regulators.

Lego's Website Hacked to Promote Fake 'Lego Coin' Cryptocurrency, Urges Visitors to Buy Scam Tokens

Lego’s official website was hacked on October 4, 2024, displaying a fraudulent cryptocurrency ad promoting a fake “Lego coin.” The unauthorized banner featured golden coins branded with the Lego logo and falsely advertised the launch of the "Lego coin," luring visitors with promises of secret rewards. Those who clicked the ad were redirected to a suspicious external site selling "Lego tokens." The breach occurred at Lego’s Denmark headquarters and was quickly noticed by users on the Lego subreddit.

Lego promptly removed the fake content and restored its original banner. The company confirmed that no user accounts were compromised and assured customers that the site was safe for regular use. In a statement, Lego acknowledged the incident, stating that they identified the cause and were implementing measures to prevent future breaches. The quick resolution helped avoid further damage, but the incident highlights the growing trend of hackers targeting popular brands to promote crypto scams.

DMCC and Swiss Blockchain Firm CVVC Partner to Accelerate Web3 Innovation in Dubai and Switzerland

The Dubai Multi Commodities Centre (DMCC) Crypto Centre and Swiss blockchain venture capital firm CVVC have formed a partnership to support the development of Web3 ecosystems in both Dubai and Switzerland. Announced in early October 2024, the collaboration aims to foster innovation, promote knowledge exchange, and accelerate the adoption of blockchain technology on a global scale. The agreement will see both organizations working together on educational initiatives like workshops and seminars, sharing resources, and collaborating on high-profile events, including the Web3 Hub during the World Economic Forum in Davos.

CVVC will also partner with the DMCC-Bybit Hackathon, further demonstrating their commitment to nurturing blockchain technology in the region. DMCC’s Chief Operating Officer, Feryal Ahmadi, emphasized the importance of this collaboration for advancing Web3 adoption and connecting the ecosystems of Dubai and Switzerland. Mathias Ruch, CEO of CVVC, added that this partnership would act as a bridge between the blockchain communities of both regions, driving forward the next phase of innovation in the digital economy.

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