In light of recent enforcement actions in the United States, Binance is turning its attention to the United Arab Emirates (UAE) as a significant focus for its future operations.
According to Alex Chehade, the general manager of Binance Dubai, the UAE has emerged as an attractive destination for crypto businesses due to its favorable stance on digital assets and clear regulatory framework.
Chehade told Cryptox that the UAE’s senior leadership’s desire to establish the region as a web3 hub and diversify away from fossil fuels, with cryptocurrency playing a pivotal role in achieving this objective.
Binance sees the UAE’s well-defined crypto regulations as a compelling factor for establishing operations in the country, especially considering the ongoing legal disputes the exchange faces with US regulators such as the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).
Chehade emphasized that Binance chose the UAE because it provides certainty and stability for business operations, stating,
“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.”
Alex Chehade, the general manager of Binance Dubai
The UAE’s Virtual Assets Regulatory Authority (VARA) was identified as a key driving force behind the surge of interest in cryptocurrencies within the region. Chehade acknowledged the clear framework provided by VARA, enabling individuals and businesses to engage with virtual assets effectively.
Additionally, Chehade pointed out that the influx of young expatriates to the UAE could contribute to the rapid adoption of cryptocurrencies. The demographic shift in a younger population aligns with a more favorable mindset toward virtual assets.
Merkle Science CEO Mriganka Pattnaik also praised the UAE’s regulatory landscape, highlighting VARA’s comprehensive compliance guidelines for firms operating in the virtual asset space. Pattnaik noted the close interaction between the private sector and regulators in the UAE’s smaller, early-stage ecosystem, which facilitates smoother collaboration.
In September 2021, Binance obtained a preparatory minimal viable product license from VARA, positioning itself for further expansion in the UAE market.
As Binance expands its operations in the UAE, the exchange aims to leverage the country’s clear regulatory environment, favorable demographics, and the vision of establishing the region as a prominent hub for the crypto industry.
