Binance Dubai general manager Alex Chehade says the UAE will become the world’s next major crypto hub and its next major focus following several enforcement actions in the United States against the cryptocurrency exchange.
Alex Chehade, general manager of Binance Dubai, said that the UAE is a primary destination for crypto businesses seeking a clear path forward, citing its favorable stance toward digital assets.
“Binance determined that the UAE’s senior leadership desired to establish the region as a Web3 hub.” “They’re attempting to diversify away from fossil fuels, and they see cryptocurrency as a great way to do so,” Chehade said.
Ultimately, the clear crypto regulations in the UAE make the region appealing to exchanges such as Binance, which is currently embroiled in legal disputes with U.S. regulators such as the Securities and Exchange Commission and the Commodities Futures Trading Commission.
“We’ve been given the assurance that we can establish operations and build for the future,” he explained, adding:
You don’t want to set up where the goalposts move. For big businesses, you need predictability, you need to plan and you need to budget.”
Chehade cited the UAE’s Virtual Assets Regulatory Authority (VARA) as a significant factor in the region’s increased interest in cryptocurrencies.
“There is a clear framework for individuals and businesses to engage with, whereas this is not as prevalent elsewhere,” he explained.
Chehade stated that, beyond regulation, the influx of young people relocating to the UAE could result in the region adopting cryptocurrencies faster than other digital asset hubs.
“Many expatriates are migrating here from Europe and Asia, and the overall population is younger — and we know that younger people have a more favorable attitude toward virtual assets.”
“You don’t see that so much in other crypto hubs.”
Mriganka Pattnaik, CEO of Merkle Science, also lauded the regulatory environment in the UAE, noting that VARA, as the world’s first virtual asset-specific regulator, provides comprehensive compliance guidelines for companies operating under its jurisdiction.
Pattnaik stated, “There is more interaction with the private sector and regulators because the early-stage ecosystem is smaller.” “It is also easier to hire teams in the UAE or simply assemble a team of 100 individuals not from the region.”
On February 7, VARA published its Full Market Product Regulations, which consist of four mandatory, activity-specific rulebooks outlining the rules for virtual asset service providers operating in Dubai.
In September 2021, Binance received a preparatory minimal viable product license from VARA.
