Arabian Business, citing industry insiders, has reported that US Securities and Exchange Commission (SEC) is tightening the noose around Binance and Coinbase, which can result in a huge outflow of crypto refugees to the United Arab Emirates (UAE).
According to the details, US SEC sued two of the world’s biggest cryptocurrency exchanges, further escalating the crackdown on digital currencies in the US.
Today we charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency and for failing to register the offer and sale of its crypto asset staking-as-a-service program.https://t.co/XPG2gDkxtV pic.twitter.com/hCdVMw8B2v
— U.S. Securities and Exchange Commission (@SECGov) June 6, 2023
This has left everyone concerned regarding its impact on the Web 3.0 community. However, this crackdown is expected to be a blessing in disguise for UAE, which is emerging as an ideal destination for cryptocurrency investments.
CEO and Co-Found of Chainalysis, Michael Gronager, stated that UAE is on the right track keeping in view that Dubai has already regulated the crypto industry under the Virtual Assets Regulatory Authority (VARA).
He noted that there is a critical chance for UAE because of the expectations that it will be a great place to run crypto businesses. Gronager who has been working in this industry since 2011 remarked that exchanges have been getting away with more than they should have, with regulators overlooking them, mainly in the US.
He argued that this clean-up of the industry will leave a positive impact rather than making things worse.
Today we charged Binance Holdings Ltd. (Binance); U.S.-based affiliate, BAM Trading Services Inc., which, together with Binance, operates https://t.co/swcxioZKVP; and their founder, Changpeng Zhao, with a variety of securities law violations.https://t.co/H1wgGgR5ir pic.twitter.com/IWTb7Et86H
— U.S. Securities and Exchange Commission (@SECGov) June 5, 2023
Both Binance and Coinbase are under multiple cases of failing to register themselves with the regulators. Things are still unclear in the US because authorities are unable to determine how to regulate crypto.
SEC claims that digital currencies are security assets, which is why it should be the one regulating, whereas Commodity Futures Trading Commission (CFTC) considers cryptocurrency to be a commodity.
This confusion has presented UAE with a “historic opportunity” to seize, according to the CTO of Aurora Labs, Arto Bendiken.
Via Arabian Business
