According to Binance Dubai general manager Alex Chehade, there are numerous reasons why the UAE will become the world’s next big crypto centre.
Following a string of enforcement proceedings against the crypto exchange in the United States, the United Arab Emirates has emerged as the next major focus for Binance.
Binance Dubai general manager Alex Chehade stated that the UAE is a prime option for crypto enterprises looking for a clear way forward, noting the country’s favorable attitude toward digital assets.
“Binance identified that the UAE’s senior leadership desired to establish the region as a Web3 focal point.” “They’re trying to diversify away from fossil fuels and see [crypto] as a great driver for that,” Chehade explained.
Finally, the UAE’s clear crypto legislation make the region appealing to exchanges like Binance, which is now dealing with legal issues from US regulators such as the Securities and Exchange Commission and the Commodity Futures Trading Commission.
“Binance is here [in the UAE] because we have been assured that we can set up operations and build for the future,” he said, adding:
Chehade cited the UAE’s Virtual Assets Regulatory Authority (VARA) as a major driving force for the region’s spike in crypto-related interest.
“There’s a clear framework for people and businesses to engage with, whereas you’re just not seeing as much of that elsewhere,” he said.
Beyond regulation, Chehade believes that the surge of young people relocating to the UAE will cause the region to adopt crypto more quickly than other digital asset centres.
“The two key drivers are that a large number of expatriates are moving here from Europe and Asia, and the overall demographic is younger — and we know that younger people have a more favorable mindset when it comes to virtual assets.”
VARA published its Full Market Product Regulations on February 7, which comprise four mandatory, activity-specific rulebooks that lay out the requirements for virtual asset service providers operating in Dubai.
VARA granted Binance a preliminary minimal viable product license in September 2021.