UAE Continues to Shine as Dominant Crypto Hub Despite Potential Shift to US Market
Summary:
Cryptocurrency firms in the United Arab Emirates (UAE), including Binance, predict the country will continue being a popular hub for digital assets, irrespective of potential changes in U.S. crypto regulations that could attract businesses back. Discussed at a recent Global Blockchain Congress event, this outlook is based on the UAE's strong support for tech and innovation, its robust infrastructure, and its "regulation by education" approach. Even if the rate of new organizations entering the UAE slows down, existing entities, attracted by the lucrative lifestyle and business ecosystem, are expected to stay.
Cryptocurrency companies in the United Arab Emirates, such as Binance, are hopeful that the country will continue to be a highly attractive location for digital assets, regardless of any potential shift towards the United States if it becomes more accommodating to the cryptocurrency sector. Harsh enforcement of regulations in the US has led to a number of global crypto businesses relocating to countries including the UAE, UK, Switzerland and Singapore. During a recent discussion at the Global Blockchain Congress event in Dubai, however, it was suggested that a change in the US approach could see these companies return.
Emphasizing the UAE's forward-thinking attitude to technology and innovation, Binance’s Middle Eastern and North African regional manager, Alex Chehade, noted the country's robust infrastructures that support various initiatives, spanning from AI to Web3, sustainability, and other sectors. He expressed confidence in the country's ability to house incoming businesses and dismissed the idea of firms moving elsewhere due to the limited offerings and visa restrictions in other jurisdictions.
In spite of Binance's recent withdrawal of its fund manager licence in Abu Dhabi and controversy surrounding its former CEO, Mr. Chehade assured that the firm would stay in the UAE, maintaining its custody license in the capital and operational permit for exchange and brokerage services in Dubai.
Meanwhile, Feras Al Sadek, managing partner at blockchain investment company, Ghaf Capital Partners, praised the UAE’s “regulation by education” concept which includes active support for projects through various engagements. He also emphasized the UAE's ambition to lead the tech industry by investing heavily in emerging technologies, setting a goal of employing 30,000 individuals in the AI field by 2030.
Co-founder of Crypto Oasis Ventures, Faisal Zaidi, noted the attractive lifestyle and business ecosystem of the UAE as major reasons for non-residents to stay beyond their initial plans. He also believes that existing businesses will endure even if the influx of new organizations slows.
Recent strict enforcement of government regulations within the US has deterred some cryptocurrency companies, leading some to advise crypto startups to steer clear of the US market for now. However, the situation could be changing as US Senators Cynthia Lummis and Kirsten Gillibrand have reintroduced legislation aimed at developing a crypto regulatory framework.
Published At
12/14/2023 2:42:36 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.