Jibrel: April Update
Jibrel has been busy working on the next batch of releases across product and service offerings. We’ve also been finalizing the policies and procedures to formalize our B2B offerings such as tokenized real estate, equity and smart bonds.
Overall Project Status
Jibrel’s April technical drive was focused on Jwallet Mobile improvements. While the 1.X releases were intended to build and address basic functionalities, the 2.0 release will focus on User Interface and Experience. Currently, the team is focused on building and releasing Jwallet Android 2.0, Jwallet iOS 2.0 and Jibrel Search 1.0. These should be released over Q2/Q3.
On the business development side, Jibrel recently engaged Emaar to facilitate real-estate purchases on-chain, using JNT, BTC or ETH. The core focus here is to create a seamless checkout experience and incentivize purchases to be undertaken using JNT (discounts/subsidies).
Achievements, Challenges & Limitations
Jibrel focused on improving the Jwallet Web as well as updates and fixes on the iOS and Android versions.
In addition, Jibrel is proud to announce that it has been accepted into the Gulf Bonds and Sukuk Association.
Human Resources
As mentioned in previous updates, Jibrel has reached its manpower plan targets and has reduced overall hiring, only hiring for specialized skill-gaps. This month, we’re pleased to add David Doss, who will lead Jibrel’s marketing efforts.
David has marketing experience across crypto and non-crypto startups, finance leaders as well as marketing agencies. We’re excited to have him on board!
Monthly Deep-dive
Crypto-regulation
Jibrel’s success is closely tied to regulatory and enterprise adoption. For this reason, this deep-dive will focus on how the regulatory landscape has evolved over the past two years.
North America
While regulation has been slow to react and evolve over the last three years, there are some positive steps being taken by regulatory agencies and governments in North America to further legitimize virtual currency activities. Currently, most crypto-startups have to meet non-crypto specific state-level regulation (Money Services Business) as well as any overarching federal regulation.
That being said, positive moves by the SEC indicate that virtual currency specific regulation may be coming. For example, the SEC recently posted a job listing looking for a Crypto Specialist. According to the job post, the “Crypto Specialist provides expertise and coordinates the Division of Trading and Market’s activities regarding crypto and digital asset securities.”
Furthermore, the Chairman of the SEC recently said that he agrees with the Divisions Head of Corporate Finance, William Hinman that Ethereum (ETH) may not be a security.
While not conclusive, these steps highlight that regulators are gradually beginning to understand and formulate the future regulatory landscape pertaining to digital assets and virtual currencies.
Europe
Numerous countries in Europe have moved to create favorable conditions for crypto-startups and exchanges. Switzerland, where Jibrel is domiciled and regulated, released a detailed ICO framework in February 2018, Malta and Luxembourg have moved to create crypto-friendly environments, and most recently, the French government has adopted a financial sector bill that establishes a legal framework for cryptocurrency businesses and initial coin offerings.
That being said, overarching EU driven framework is still absent, but is expected to be formulated within the year.
Asia
While historically Asia has been a more favorable climate for virtual currencies, this has been largely driven by individual and retail user demand. On the regulatory side, governments have gone back and forth. Most notable, South Korea and China.
In recent news, China has moved to ban cryptocurrency mining, but this type of news has surfaced numerous times before.
Previous regulation has banned trading, issuance (token offerings) and yet China is still the largest miner globally, accounting for more than 45% of mining power.
It is still unclear if China’s central state planner, the National Development and Reform Commission, will follow through on its promises to ban cryptocurrency mining, but even if it chooses to introduce a ban it is likely to be gradually implemented.
Middle East & North Africa
Like numerous countries in Europe, MENA countries have moved to create a more hospitable and less ambiguous regulatory environment for crypto-startups. Most notably, Bahrain has released a well defined regulatory framework and as a result has attracted numerous crypto-startups, particularly exchanges, to set up shop in the Central Bank of Bahrain’s Regulatory Sandbox. In addition, in the United Arab Emirates, the Financial Services Regulatory Authority (FSRA), the regulator overseeing Abu Dhabi Global Market (ADGM), issued comprehensive guidance and regulations on carrying out activities relating to cryptocurrencies (June 2018).
The FSRA will determine, on a case-by-case basis, whether a token is a security or a commodity. If the FSRA classifies it as a security, the issuer would be subject to existing financial Services regulations.
South America
While South American crypto-activity tends to revolve around adoption, given high inflation (e.g. Venezuela, Argentina), Chile recently made the news for comments put forth by Chile Finance Minister, Felipe Larraín, who has forwarded a FinTech and Crypto-currency bill to congress. He said “Taking into account the different forms taken by the business models of these platforms and also the fact that different platforms can provide different services, the regulation will apply requirements proportionally, regulating according to the type of service provided and the risks that this implies for the users and for the financial market.”
While positive, the Minister did highlight that the legislation revolved around implementing a risk mitigation approach, rather than investment and innovation attraction. He added “A regulation to these platforms would mitigate some of these risks, such as money laundering and financing of terrorism, and increase the legal certainty with which they operate. We want to adequately protect the risks associated with this activity.”
Regulation is coming has been a general theme since 2012/2013, but over the last 18 months we have seen regulators introduce policy and legislation for virtual currencies at a rate not seen before, which can only be interpreted as positive and a step in the right direction.
Conclusion
Key Takeaways
- Jibrel is beginning to see traction across B2C products
- Jibrel will develop and expand B2C product functionalities to match competitors / become best in class
- As the user base grows, Jibrel will be able to incentivize the use of JNT across its products and services
- Jibrel has already begun undertaking similar JNT incentive initiatives in its B2B / B2B2C offerings (e.g. Emaar properties on-chain)
The Jwallet is the easiest, fastest, and most secure mobile crypto wallet for Ethereum & ERC20 tokens. Download on iOS | Download on Android
