Binance is looking to make the UAE its key operational hub to drive mainstream Web3 adoption, particularly in the Middle East. With crypto-friendly regulations, world-class infrastructure, and a forward-thinking government, the UAE ticks all the boxes for crypto businesses.
Binance Executive Highlights UAE as Strategic Location
The United Arab Emirates has become a hub for blockchain and cryptocurrency companies, and Binance wants in on the action. According to Binance Dubai general manager Alex Chehade, Binance is set up in the UAE market because the company has been given assurance to set up operations and build for the future, he told CoinTelegraph.
“Binance identified that the senior leadership of the UAE wanted to establish the region as a focal point for Web3. They’re trying to diversify away from fossil fuels and they see [crypto] as a great driver for doing so,” said Chehade.
The UAE, especially Dubai, has actively courted blockchain and crypto businesses. This forward-thinking approach creates an ecosystem where crypto and blockchain companies can thrive. For this reason, Binance can network, find partners, and work together with other UAE-based crypto businesses.
The Future Is Bright for Crypto in the UAE
The United Arab Emirates (UAE) is one of the countries in the Middle East that is attempting to embrace the cryptocurrency business. This is in contrast to other countries in the Western part of the world where cryptocurrency companies are continually subjected to regulatory challenges. The country has already positioned itself as a global hub for blockchain innovation and adoption with new crypto regulations in the works and major industry players setting up shop.
Last year, a Virtual Asset Regulation Authority was set up in Dubai as part of plans to position Dubai and the UAE as regional and global destinations for the virtual assets sector. It has since released new guidelines for virtual asset service providers (VASPs) within the jurisdiction.
Last month, the UAE’s Securities and Commodities Authority began allowing crypto firms to apply for licenses. The central banks of Hong Kong and the United Arab Emirates have since announced plans to work together on creating a clear regulatory framework for digital assets.
Considering the current influx of young people moving to the UAE, Binance’s plans for the UAE show its commitment to accelerating the growth of Web3 on a global scale. In turn, the UAE stands to benefit from the jobs, innovation, and economic activity that come with the blockchain and crypto industries.
“There’s a clear framework for people and businesses to engage with, whereas you’re just not seeing as much of that elsewhere,” Chedade said.