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Binance, a crypto urgency exchange, plans to open its offices in UAE after facing a massive crackdown in the United States as it seems to deepen its operations in UAE. According to the analysts, UAE has great potential and an excellent market to buy and sell crypto.
Alex Chehade, Binance’s Dubai General Manager, stated, “UAE has become an attractive destination for crypto businesses because it has favorable views on digital assets and clear regulations.”
Speaking on Binance’s proposed expansion, Alex Chehade said, “Binance identified that the senior leadership of the UAE wanted to establish the region as a focal point for Web3. They are trying to diversify away from fossil fuels and see crypto as a great driver for doing so.”
“Binance has chosen UAE because we have been given the security to start operations and build a great future for digital currency. To establish a big business, one has to be proactive and have a clear vision to plan the budget and other factors”.
Moreover, the company shared its statistics on its Twitter account, where the UAE had the most significant percentage of cryptocurrency owners across the world, i.e. (26.77%)
Previously in December 2021, Binance signed an agreement with Dubai World Trade Centre Authority to build an industry hub for global digital assets.
The UAE is planning to become a web3 hub and working to reduce fossil fuel reliance, using cryptocurrency as a tool to achieve their targets as digital cryptocurrency plays a crucial role in achieving the desired targets.
By considering the legal disputes ongoing with United States regulators like the Securities and Exchange Commission (SEC) and the UAE Trading Commission Commodity Futures (CFTC), Binance witnesses it as a strong tool for starting a headquarters in UAE.
Alex Chehade pointed out that “Binance was much more focused in UAE to start its operations a stage country offers a stable and secure trading environment. In addition, the Virtual Assets Regulation Authority (VARA) plays a vital role and is a key driver of interest in the sector. VARA provides a clear framework for people and businesses to interact effectively with virtual assets.”
Additionally, the rapid increase of foreign investments and the growing number of young expats in the UAE could contribute to the rapid adoption of digital cryptocurrencies. As we know, people are more interested in digital assets and are curious to adopt the changes. Especially the younger generation in UAE shows a positive towards virtual assets.
Mriganka Pattnaik, CEO of Merkel Science, also praised the UAE’s regulatory landscape, particularly VARA’s comprehensive compliance guidelines for companies with virtual assets.
However, the close relationship and dealings between the private sector and regulators in UAE’s more constrained early-stage ecosystem facilitate wider and smoother operations.
In September 2021, VARA officially announced a preparatory minimal viable product license to Binance, positioning itself for further expansion in the UAE digital market.
In November 2022, Binance Holdings got in-principle approval from Abu Dhabi global market to execute its operations as a crypto asset broker. Moreover, the company is also monitoring Web3 tech investments in the UAE.
On the other hand, Binance also announced to cease its operation in Canada, citing the challenging regulatory environment. Binance was founded by Chengpemg Zhao in 2017, and since its emergence, it has dominated the cryptocurrency market, dealing in $65 billion in daily trades. In the last few months, regulators eager to crack down on money laundering have been alarmed to monitor Binance closely.
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