The United Arab Emirates is shaping up to be Binance’s next big focus following a series of enforcement actions against cryptocurrency exchanges in the United States.
In an interview with Cointelegraph, Alex Chehade, general manager of Binance Dubai, said that the UAE is a major destination for cryptocurrency businesses looking for a clear path forward, noting its friendly stance towards digital assets.
“Binance found that the top leadership in the UAE wanted to make the region a focal point for Web3. They were trying to diversify away from fossil fuels, they found [crypto] As a great driver,” Chehade said
Ultimately, clear cryptocurrency regulations in the UAE make the region attractive to exchanges such as Binance, which is currently grappling with Regulatory Legal Troubles In the United States, including the Securities and Exchange Commission and Commodity Futures Trading Commission.
“Binance is coming [in the UAE] Because we know for sure that we can do business and build for the future,” he explained, adding:
“You don’t want to set where the goalposts move. For a big business, you need predictability, you need planning, you need budget.”
Chehade pointed to the UAE Virtual Assets Regulatory Authority (VARA) as a key driver of the surge in cryptocurrency-related interest in the region.
“There’s a clear framework for individuals and businesses to engage, and you don’t see that much elsewhere,” he said.
Beyond regulation, Chehad said the influx of young people into the UAE could lead to faster adoption of cryptocurrencies in the region than other digital asset hubs.
Here is an interesting statistic for your reference, showing that the UAE ranks first in the world for cryptocurrency owners (by percentage of population). https://t.co/XZveSPRbLw
— Binance Middle East and North Africa (@BinanceArabic) June 14, 2023
“Two key drivers are that many expats are moving here from Europe and Asia, and the overall population is also younger – we know that younger people have a more favorable mindset towards virtual assets.”
“You don’t see that much in other crypto hubs.”
Merkle Science CEO Mriganka Pattnaik also praised the UAE’s regulatory environment, noting that VARA, as the world’s first regulator for virtual assets, provides very detailed compliance guidelines for companies under its jurisdiction.
“There is more interaction with the private sector and regulators because this is a smaller early stage ecosystem,” Patnaik told Cointelegraph. “It’s also easier to hire a team in the UAE or build a team of 100 people, and none of them are from the region.”
February 7, VARA posted The market-wide product regulations, which include four mandatory, event-specific rulebooks, set out the rules for virtual asset service providers operating in Dubai.
Dubai’s Virtual Assets and Regulatory Authority has released its long-awaited comprehensive market regulations for virtual asset service providers (VASPs).
– Irina ₿. Heaver (@IrinaHeaver) February 7, 2023
Binance received Prepare Minimum Viable Product License Available from VARA September 2022.