Cryptocurrency exchange, Binance, is shifting its focus to the United Arab Emirates (UAE) after facing a crackdown in the United States (US).
Binance Dubai’s General Manager, Alex Chehade, explained that UAE has become an attractive destination for crypto businesses because it has favorable views on digital assets and clear regulations.
The UAE hopes to become a web3 hub and reduce fossil fuel reliance, with cryptocurrencies playing a vital role in achieving these goals.
Binance sees the UAE’s well-defined crypto regulations as a compelling reason to set operations there, especially considering the legal disputes it faces with US regulators like the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).
Chehade stressed that Binance chose UAE because it offers a stable and certain business environment. The Virtual Assets Regulatory Authority (VARA) is a key factor driving the interest in cryptocurrencies in the region. VARA provides a clear framework for individuals and businesses to engage with virtual assets effectively.
Moreover, UAE’s growing population of young expats could contribute to the rapid adoption of cryptocurrencies. The younger generation in UAE generally has a positive attitude toward virtual assets.
Merkle Science CEO, Mriganka Pattnaik, also lauded UAE’s regulatory landscape, especially VARA’s comprehensive compliance guidelines for virtual asset firms.
The close collaboration between the private sector and regulators in UAE’s smaller, early-stage ecosystem facilitates smoother operations.
In September 2021, Binance obtained a preparatory minimal viable product license from VARA, positioning itself for further expansion in the UAE market.
