April 19, 2024
Binance, Crypto Firms Positive On UAE Amid U.S. Regulatory Shift
Policy & Regulation

Binance, Crypto Firms Positive On UAE Amid U.S. Regulatory Shift

Cryptocurrency firms, including Binance, express confidence in the UAE’s appeal for virtual assets despite potential U.S. relocation. A panel discussion at the Global Blockchain Congress in Dubai hinted at the prospect of companies returning to the U.S. if it becomes more crypto-friendly.

Binance’s general manager for the Middle East and North Africa, Alex Chehade, praised the UAE’s infrastructure and government support for technology and innovation, emphasizing the country’s education system, healthcare, and overall development.

“[People exiting] wouldn’t be the worry. We’d probably be worried [about], ‘do we have enough infrastructure for people coming in?’”

Chehade affirmed Binance’s commitment to the region, mentioning its custody license in Abu Dhabi and operational permits for exchange and brokerage services in Dubai. Despite recent regulatory challenges, including a fund manager license withdrawal and legal issues involving the former CEO, Binance intends to stay in the UAE.

The discussion highlighted the U.S.’s “regulation by enforcement” approach, prompting global crypto firms to relocate to jurisdictions like the UAE, the UK, Switzerland, and Singapore.

Feras Al Sadek, managing partner at Ghaf Capital Partners, praised the UAE’s regulatory strategy, emphasizing “regulation by education.” Local regulators actively support projects through engagements like conferences and meetups. He stated:

“It’s very hard to find regulators… fighting, educating, and supporting these companies. So that I think is a key differentiator between us and the rest of the world.”

Al Sadek underscored the UAE’s ambition to lead the tech industry by employing thousands in emerging technologies, particularly aiming for 30,000 personnel in artificial intelligence by 2030.

Faisal Zaidi, co-founder of Crypto Oasis Ventures, credited the UAE’s lifestyle and business community for making it attractive for nonresidents to stay.

“Maybe there [will be] a slowdown in newer organizations coming, but the ones that are here are going to stay.”

The combination of a welcoming ecosystem, communities, and lifestyle often leads individuals to extend their stay beyond initial plans. While U.S. regulatory scrutiny has prompted crypto firms to look elsewhere, there are indications of potential regulatory improvements in the U.S., with senators proposing a crypto regulatory framework.

Image by www.slon.pics on Freepik

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