Binance Targets UAE As The Major Centre For Its Operations
The latest report revealed that Binance, the largest exchange globally in terms of market capitalization, has reportedly fixed its focus on the United Arab Emirates UAE) as the next target for crypto business opportunities. Binance spokesperson said the country offers many factors that can facilitate the development of the crypto industry.
According to the report, Binance Exchange aims to make the UAE the center of its operations in the future. The news surfaced when the United States Securities and Exchange Commission opened a lawsuit against Binance.US and other prominent regional exchanges.
In addition, the UAE is currently striving to create a crypto-friendly environment as it aims to become the next major crypto center globally. Hence, the country makes a perfect fit for Binance as it looks to shift business away from the US.
Furthermore, the general manager of Binance in Dubai, Alex Chehade, stated that there are a lot of opportunities in the UAE for the crypto economy to thrive, which makes it an excellent focus for crypto startups that seek a friendly environment for digital assets space to grow.
Additionally, Chehade stated that the authorities in the UAE plan to develop the country as a global hub for Web3 space. They want to diversify from crude oil, and they consider the crypto industry as their best option to further grow their economy, according to Chehade.
Regulation Clarity Entice Crypto Entities To Dubai
Generally, the transparent and precise cryptocurrency rules in the country make Binance find it attractive and suitable for its business, unlike the United States market, which is recently become harsh on crypto platforms as the SEC continues to issue lawsuits to multiple firms and also abruptly classed about 68 tokens as securities without clear rules backing its actions.
The Dubai Binance manager also pointed out that the regulation clarity in the country assures Binance that it can establish its business operations and aim for further expansion in the region without regulation entanglement.
Alex Chehade highlighted that no business wants to set up in an area where the goalposts constantly move, as its business would not thrive. Especially for big companies, the element of predictability and focus, along with a fixed budget and long-term plan, is necessary to grow.
The general manager continued that the United Arab Emirates continues to record massive startups migrating to the region. And he highlighted that the business-friendly crypto environment created by the Virtual Assets Regulatory Authority of the country is the factor in the significant influx.
He added that they provided clear and comprehensive regulations with which business entities can easily engage more than most other countries worldwide. Besides, the rate at which young talents flux into the country encourages the UAE authorities to embrace the crypto industry more quickly than other regions.
Furthermore, recent statistics showed that the United Arab Emirates ranked first in the list of most crypto holders worldwide, based on percentage by population.
Expats And Friendly Regulations Encourage Startups
Mriganka Pattnaik, the Chief executive officer of Merkle Science, stated that there are two major driving forces for the crypto industry in the country. One, he said the majority of the large number of expats migrating from Asia and Europe into the country are young people.
He added that young minds are enthusiastic about evolving technologies, especially Web3 and crypto. He said this scenario is hardly found in other regions striving to be the next crypto hub globally.
Secondly, the CEO added that the demographic location of UAE, coupled with the friendly and clear regulations provided by VARA, helped to entice many startups and investors interested in cryptocurrency to the region.
Pattnaik continued that there is comprehensive and good interaction between the regulators and private sectors in the country as the crypto industry is still in a developmental stage. Hence, it is easier for the country’s regulator to regulate the booming ecosystem.
According to a report, VARA launched its full market product rules, which included about four regulations specifically meant for digital assets service providers in Dubai, on February 7 this year. However, Binance had earlier obtained its VARA license in 2021, as per a report.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
