Binance Turns Attention to UAE Amid US Legal Challenges
Binance is now turning its attention to the United Arab Emirates following a series of enforcement actions taken against the cryptocurrency exchange in the United States.
Alex Chehade, General Manager of Binance Dubai, informed Cointelegraph that the UAE is an ideal location for crypto businesses looking for a transparent way ahead and highlighted its amicable attitude towards digital assets.
“Binance noted that the top management in the UAE are aiming to make the area a hub for Web3. They are looking to transition away from fossil fuels and view cryptocurrency as a way to do this,” Chehade commented.
The UAE’s clear crypto regulations make it an inviting destination for exchanges such as Binance, which is currently facing legal challenges from the Securities and Exchange Commission and the Commodities Futures Trading Commission in the US.
“Binance has come to the UAE with assurance that it can establish operations and plan for the future,” he elucidated, continuing.
Chehade highlighted the UAE’s Virtual Assets Regulatory Authority (VARA) as a major impetus behind the growing interest in crypto-related activities in the area.
He remarked, “The framework for people and businesses to interact is quite clear, unlike what we are seeing in other places.”
Chehade remarked that the influx of young people to the UAE could cause the region to adopt crypto more quickly than other digital asset centers.
“The two main factors behind this are the influx of expatriates from Europe and Asia, and the younger demographic – who are more open to virtual assets.”
UAE’s Clear Crypto Regulations Attracts Binance and Other Crypto Businesses
Mriganka Pattnaik, CEO of Merkle Science, also lauded the regulatory environment in the UAE, emphasizing that VARA, being the first virtual asset-specific regulator globally, provides very comprehensive compliance guidelines for businesses operating under its jurisdiction.
The Dubai Financial Services Authority (VARA) has given the OKX Exchange approval for a “preparatory” license as part of its growth plans.
“Due to being a smaller, early-stage ecosystem, there is more engagement between the private sector and regulators,” Pattnaik informed Cointelegraph. “Moreover, it is simpler to recruit teams in the UAE or even assemble a team of 100 people, none of whom are from the area.”
On the 7th of February, VARA unveiled its Full Market Product Regulations, which include four obligatory, activity-specific rulebooks that establish the regulations for virtual asset service providers working in Dubai.
In September 2021, Binance was granted a preparatory minimal viable product license from VARA.
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