Binance has shifted its focus to the United Arab Emirates (UAE) as its primary target for future operations. Alex Chehade, the general manager of Binance Dubai, revealed this in an interview with Cointelegraph on Monday, June 26, 2023.
According to Chehade, the exchange recognizes UAE’s current administration’s plans to establish the country as a prominent hub for Web3 technologies as it aims to diversify the country’s economy and lessen its reliance on fossil fuels.
Chehade emphasized that Binance chose to establish its operations in the UAE due to assurances of a stable regulatory environment that allows for long-term planning without constantly shifting regulations.
Chehade also commended the Virtual Assets Regulatory Authority (VARA) of the UAE for driving interest and facilitating the growth of crypto-related activities in the region. He noted that, unlike other locations, the UAE provides a clear framework for individuals and businesses to engage with.
The Virtual Assets Regulatory Authority (VARA) published its Full Market Product Regulations on February 7, 2023, and the regulations outline the requirements for virtual asset service providers operating in Dubai and consist of four rulebooks specific to different activities.
Moreover, Chehade suggested that the UAE may embrace cryptocurrencies at a faster pace than other digital asset hubs due to the influx of young people migrating to the region. According to Chehade, the growing interest in cryptocurrencies in the UAE can be attributed to two significant factors. Firstly, the influx of immigrants from Europe and Asia brings diverse perspectives and experiences, which creates a fertile ground for crypto adoption. Secondly, the generally youthful population in the region means the region would have a more favourable outlook on virtual assets.
Binance was granted a license by VARA for a minimally viable product, indicating the recognition and authorization of Binance’s operations in the UAE in September 2021. In March 2022, Binance was granted another license that permits it to extend limited exchange products and services to pre-qualified investors and professional financial service providers in Dubai.
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