- Binance is losing its footing in different regions.
- There appears to be a home for the exchange in the UAE.
- A clear rulebook, engaged leadership, and a population with demands are all big ticks for the exchange.
Binance, the world’s largest global exchange, has recently faced significant pressure from different jurisdictions. Legal trouble with the SEC and difficulties from European countries have Binance looking for a welcoming home.
The United Arab Emirates has presented itself as an ideal landing spot for the beleaguered global exchange. Binance Dubai general manager Alex Chehade told DailyCoin the region is looking for Web3 builders to make an impact – and Binance has answered the call.
A Region for Web3
According to Chehade, the UAE is looking to pivot into future-focused technology, in which crypto plays a major role. He said: “Binance saw that the senior leadership of the UAE wanted to establish the region as a focal point for Web3; we have been in conversation with leaders and want to provide our services in the region.”
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Binance is also settling itself up in the UAE as the regulations set around crypto are familiar to traditional finance, as well as clear and predictable.
Chehade explained that he, and his team, understand how to work within the parameters set by the UAE and appreciate the surety that the regulatory framework won’t change or leave gray areas for their operations.
“The UAE has provided clear regulations and a definitive direction for engaging in Web3 and building the crypto industry, making it a favorable location for Binance to set up operations, whereas that is not happening much elsewhere,” he said.
Ultimately, the UAE’s Virtual Assets Regulatory Authority (VARA) is providing the framework that Binance finds so favorable and inviting. Chehade also states that it is not only clear but dynamic and ready to evolve with companies set up in the region.
A Crypto Demographic
Chehade also noted that the UAE has a demographic that is very open to crypto.
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“The UAE has a lot of young professionals moving into the area, and these people are also ex-pats, which we have found are often big crypto users.”
With a clear regulatory framework, a desire to be a leading Web3 destination, and a population well-suited to adopting crypto, Binance may find the UAE a sheltered hub to build from as the rest of the globe wrestles with its own regulatory direction.
On the Flipside
- Binance is not the only crypto exchange moving to the UAE. OKX reported that VARA had granted the firm a minimal viable product preparatory license, while Gemini is also looking to establish itself in the Emirates.
Why This Matters
Binance remains the preeminent player in the crypto space, and regardless of people’s opinions on the firm, it plays an important role internationally. If it can find a place to operate in and within the laws, it will be beneficial for crypto adoption.
Read more about Gemini looking to enter the UAE:
Gemini to Enter UAE, Citing High Crypto Enthusiasm in Country
Read more about RFK Jr.’s plans for crypto if he’s elected:
Presidential Hopeful RFK Jr on Bitcoin: “I Will Only Allow Narrow Controls”
