The United Arab Emirates (UAE) is the next focus for Binance after a series of law enforcement actions in the United States against the crypto exchange.
In an interview with Cointelegraph, Binance Dubai General Manager Alex Chehade said that the UAE is the main goal for crypto businesses that are looking for a clear way forward and record UAE-friendly attitudes towards digital assets.
"Binance is aware that senior UAE leaders want to make this region the center of attention to Web3. They are trying to diversify from fossil fuels and they see [crypto] as a great driver to do so," Chehade said.
In the end, clear crypto regulations in the UAE make this region attractive to exchanges like Binance, which are currently struggling with legal disputes from regulators in the United States, including Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC).
"Binance is here (in the UAE) because we are given assurances that we can carry out operations and build for the future," he explained.
"You don't want to set up a business in a place that moves its position. For big businesses, you need certainty, you need to plan and you need to budget," Chehade said. He noted the Virtual Assets Regulatory Authority (VARA) of the UAE as the main driving force behind the surge in crypto-related interest in the region.
"There is a clear framework for individuals and businesses to interact, while it is not seen so much elsewhere," he said.
In addition to regulations, Chehade said the large number of young people moving to the UAE could make the region adopt crypto faster than other digital asset centers.
"The two main factors are that many expatriates have moved here from Europe and Asia, and the overall demographics are also younger - and we know that young people have a better mindset regarding virtual assets," he said.
"You don't see that much in other crypto centers," said Merkle Science CEO Mriganka Patt naik, who also praised the regulatory landscape in the UAE. He noted that VARA as the world's first virtual asset-specific regulator, provides very detailed compliance guidelines for companies operating under its supervision.
"There is more interaction between the private sector and regulators because this is a smaller ecosystem and an early stage," Patt naik told Cointelegraph. "It's also easier to team up in the UAE or build a team with 100 people, all of whom don't come from the region, it's also easier."
On February 7, VARA released a Full Market Product Regulation, which includes four mandatory rule books specific to any activity that stipulates regulations for virtual asset service providers operating in Dubai.
Binance has obtained a minimum feasible product license from VARA in September 2021.
With clear crypto regulatory conditions and encouragement from the UAE government, Binance hopes to develop its operations in the region with confidence and make it a stable base for their future business growth.
Currently, Binance Dubai and various other crypto companies are exploring the potential offered by the UAE which is innovative and blockchain technology-oriented, and welcomes a rapidly growing ecosystem in the region.
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