Last Updated on: 22nd July 2023, 02:11 pm
Cryptocurrency Giant Opens Operational Headquarters in The UAE
Cryptocurrency exchange Binance is targeting the United Arab Emirates (UAE) after the crackdown in the United States (US).
Binance Dubai CEO Alex Chehade explained that the UAE has become an attractive destination for crypto companies due to its positive attitude towards digital assets and clear regulations.
The UAE hopes to become a Web3 hub and reduce dependence on fossil fuels, and cryptocurrencies play a crucial role in achieving these goals.
Binance sees the UAE’s well-defined crypto regulations as a compelling reason to locate there, especially given the litigation with U.S. regulators like the Securities and Exchange Commission (SEC) and the UAE Trading Commission. Commodity Futures (CFTC).
Chehade pointed out that Binance chose the UAE because it offers a stable and secure trading environment. The Virtual Assets Regulatory Authority (VARA) is a key driver of interest in cryptocurrencies in the region. VARA provides a clear framework for people and businesses to interact effectively with virtual assets.
Additionally, the growing number of young expats in the UAE could contribute to the rapid adoption of cryptocurrencies. The younger generation in the UAE generally has a positive attitude toward virtual assets.
Mriganka Pattnaik, CEO of Merkle Science, also praised the UAE’s regulatory landscape, particularly VARA’s comprehensive compliance guidelines for companies with virtual assets.
Close collaboration between the private sector and regulators in the UAE’s smaller ecosystem facilitates operations.
In September 2021, Binance received a preliminary minimum product license from VARA, preparing for further expansion into the UAE market.
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