Clear crypto regulations are allegedly the driving force behind Binance's plan to make UAE a strategic hub.
As Binance grapples with a series of enforcement actions in the United States, the United Arab Emirates (UAE) is evolving into its critical operational core.
Alex Chehade, Binance's General Manager for Dubai, explained that the crypto-friendly regulations and the country's dynamic vision for Web3 technologies made it a perfect choice.
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Chehade revealed that Binance is attracted to the UAE's active approach to crypto adoption and regulation.
Binance identified that the senior leadership of the UAE wanted to establish the region as a focal point for Web3. They’re trying to diversify away from fossil fuels and they see <crypto> as a great driver for doing so.
The UAE's welcoming stance on crypto, according to Chehade, provides the predictability that significant businesses like Binance seek. Clear rules of operation and consistency are crucial for the crypto giant as it navigates through regulatory hurdles in the US from entities like the Securities and Exchange Commission and the Commodities Futures Trading Commission. He accentuated:
Binance is here <in the UAE> because we've been given the surety that we can set up operations and build for the future.
Adding to the list of attractive attributes, the UAE's Virtual Assets Regulatory Authority (VARA) stands out. The authority has generated a distinct framework for individuals and businesses, which Chehade suggests is not as evident in other locations.
There’s a clear framework for people and businesses to engage with, whereas you’re just not seeing as much of that elsewhere.
Binance's strategic move towards the UAE is driven by the country's positive crypto regulatory environment and a youthful, tech-savvy population. It signifies the crypto exchange's resilience amidst regulatory challenges in the United States and its determination to continuously expand its global footprint.
However, Binance is not the only crypto exchange planning to make UAE its global hub. In May, crypto exchange Coinbase executives allegedly traveled to the United Arab Emirates to explore the potential of a "strategic hub."
