Binance has set its sights on the United Arab Emirates (UAE) as a primary priority for its future operations in light of recent legal actions in the United States.
The UAE has emerged as a desirable location for cryptocurrency companies because of its supportive position on digital assets and transparent regulatory environment, claims Alex Chehade, general manager of Binance Dubai.
According to Chehade, the UAE’s senior leadership wants to make the region a hub for Web 3 and diversify away from fossil fuels, and cryptocurrency will be essential in achieving this objective.
Given the ongoing legal disputes the exchange has with US regulators like the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC), Binance sees the UAE’s clearly defined crypto regulations as a compelling reason to start operations there.
Chehade stressed that the UAE was Binance’s choice because it offers security and stability for conducting business, saying,
“You shouldn’t set up where the goalposts are moving. You need predictability, planning, and budgeting for large businesses.
General Manager of Binance Dubai, Alex Chehade
The Virtual Assets Regulatory Authority (VARA) of the United Arab Emirates has been highlighted as an important player in the region’s increased interest in cryptocurrencies. Chehade acknowledged the clear framework provided by VARA, which enables individuals and businesses to communicate well with virtual assets.
Furthermore, Chehade noted that the surge of young immigrants to the UAE may have an impact on the quick uptake of cryptocurrencies. A more positive attitude toward virtual assets is consistent with the demographic trend toward a younger population.
The CEO of Merkle Science, Mriganka Pattnaik, also praised the regulatory environment in the UAE and drew attention to VARA’s thorough compliance guidelines for businesses engaged in the virtual asset industry. In the UAE’s smaller, early-stage ecosystem, Pattnaik pointed out the strong engagement between the private sector and authorities, which makes collaboration easier.
Binance positioned itself for further market expansion in the UAE by obtaining a preparatory minimal viable product license from VARA in September 2021.
Binance plans to take advantage of the UAE’s clear legal environment, and approachable demographics and aims to make the region a leading hub for the cryptocurrency industry as it expands its operations there.