Crypto exchange company Binance is eyeing an expansion into the United Arab Emirates (UAE), as it seeks to deepen its operation into the middle east region, while it faces strict regulations in Europe.
Binance Dubai general manager Alex Chehade disclosed that UAE is a prime destination for crypto businesses seeking a clear path forward and noted its friendly stance toward digital assets.
Speaking on Binance’s proposed expansion to the United Arab Emirates, he said,
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“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 they see crypto as a great driver for doing so.
“Binance is here in the UAE because we have been given the surety that we can set up operations and build for the future. 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”.
Chehade further stated that UAE’s Virtual Assets Regulatory Authority (VARA) is a key driving force behind the surge of crypto-related interest in the region. He noted that the region’s clear framework for people and businesses makes it easy to engage with, which has led to the influx of young people in the region.
On Binance Arabic handle on Twitter, the company posted a statistic, which showed the UAE ranked 1st in crypto owners globally at 27.67%.
Recall that in December 2021, Binance signed an agreement with Dubai World Trade Centre Authority to establish an industry hub for global virtual assets.
Also, last year November, Binance Holdings received in-principle approval from Abu Dhabi Global Market to operate as a crypto asset broker. The company is also eyeing web3 tech investments in the UAE and has appointed a fund manager based in Abu Dhabi.
The crypto exchange expansion to the Middle East is coming, following its intense scrutiny from financial regulators across the world.
In May this year, Binance announced that it would cease operations in Canada, citing the challenging regulatory environment. In July 2023, the crypto exchange exited the Netherlands, after it failed to obtain a virtual asset service provider (VASP) from the local regulator.
Last week, Belgium’s FSMA regulator ordered Binance to cease offering any virtual currency services in the country, adding to pressure on the world’s biggest cryptocurrency exchange.
Binance which was founded by Changpeng Zhao in Shanghai in 2017, has grown to dominate the crypto industry, which handles $65bn (£53bn) in daily trades but has recently continued to face intense scrutiny from keen regulators to clamp down on money laundering.
Notably, it is understood that the collapse of one of Binance’s biggest rivals, FTX, and the criminal proceedings that have followed, have negatively impacted the crypto sector, which has led to increased scrutiny on crypto exchanges.
In the UK, as part of the increased regulatory actions in the crypto industry, Binance is mandated to register with the FCA, which requires crypto exchanges to prove they have systems in place to prevent money laundering and terrorism financing.
Global financial watchdogs have expressed concern over issues including securities rules and consumer protections, and at the same time, Binance has been reported to struggle to keep up its compliance function on par with its rapid growth.