The United Arab Emirates has become the next big focus for Binance after several enforcement actions in the United States against the crypto exchange.
Speaking to Cointelegraph, Binance Dubai general manager Alex Chehade said that the UAE is a prime destination for crypto businesses looking for a clear path forward and aware of the friendly stance. of these digital assets.
“Binance recognizes that the UAE’s senior leadership wants to build the region as a Web3 hub. They are trying to diversify away from fossil fuels and they see [crypto] as a good driver for doing so,” said Chehade
Finally, the UAE’s clear crypto regulations make the region attractive to exchanges like Binance, which is currently battling legal disputes from US regulators, including the Securities and Exchange Commission, and the Commodities Futures Trading Commission.
“Binance is here [in the UAE] because we are given the assurance that we can set up operations and build for the future,” he explained, adding:
“You don’t want to set up where the goalposts are going to move. For big businesses, you need predictability, you need to plan and you need to budget.
Chehade identified the UAE’s Virtual Assets Regulatory Authority (VARA) as a key driving force behind the surge in crypto-related interest in the region.
“There’s a clear framework for people and businesses to come together, whereas you don’t see much of that elsewhere,” he said.
Beyond regulation, Chehade said the influx of young people moving to the UAE will see the region adopt crypto faster than other digital asset hubs.
Here is an interesting piece of statistics for you to use, which shows the UAE ranks 1st in crypto owners, worldwide, in % of the population. https://t.co/XZveSPRbLw
– Binance MENA (@BinanceArabic) June 14, 2023
“The two key drivers are that more expatriates are moving here from Europe and Asia, and the overall demographic is also younger – and we know that young people have a more favorable mindset when about virtual properties.”
“You don’t see that in other crypto hubs.”
Merkle Science CEO Mriganka Pattnaik also praised the regulatory landscape in the UAE, saying that VARA, as the world’s first virtual asset-specific regulator, provides very detailed compliance guidelines for companies working under its charge.
Related: Dubai’s VARA approves ‘preparatory’ OKX license as part of exchange’s expansion plans
“There will be more interaction with the private sector and regulators because this is a small, early-stage ecosystem,” Pattnaik told Cointelegraph. “It is also easy to hire teams in the UAE or just create a team of 100 people, all of whom are not from the region.”
On February 7, VARA released the Comprehensive Market Product Regulations, which include four mandatory, activity-specific rulebooks that outline the rules for virtual asset service providers operating in Dubai.
⚠️News in Dubai
Dubai’s Virtual Assets and Regulatory Authority has issued the long-awaited Full Market Regulations for Virtual Assets Services Providers (VASPs).
— Irina ₿. Heaver (@IrinaHeaver) February 7, 2023
Binance received a preliminary minimal functional product license from VARA in September 2021.
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