Cryptocurrency firms in the United Arab Emirates, including Binance, remain optimistic about the region’s status as a hub for digital assets, despite the possibility of a shift towards the United States if it becomes more crypto-friendly.
The current “regulation by enforcement” approach in the U.S. has led global crypto companies to relocate to more accommodating jurisdictions like the UAE, the UK, Switzerland, and Singapore. This topic was discussed at the Global Blockchain Congress in Dubai on December 11, where the potential return of these companies to the U.S. was considered, should regulatory conditions improve.
Alex Chehade, Binance’s General Manager for the Middle East and North Africa, emphasized the UAE’s commitment to technology and innovation, noting its development in areas beyond AI, including Web3 and sustainability. Chehade expressed confidence in the UAE’s infrastructure to support incoming companies, citing its robust education and healthcare systems, as well as its transportation network.
Chehade mentioned that Binance, despite recent regulatory challenges, including withdrawing its fund manager license in Abu Dhabi and a $4.3 billion settlement in the U.S., plans to maintain its presence in the UAE. The company holds a custody license in Abu Dhabi and a permit for exchange and brokerage services in Dubai.
Feras Al Sadek, Managing Partner at Ghaf Capital Partners, highlighted the UAE’s “regulation by education” approach, where local regulators actively engage with and support projects. He pointed out the rarity of finding regulators who are both supportive and educational towards companies in this sector.
Al Sadek also noted the UAE’s ambition to be a leader in the tech industry, aiming to employ thousands in emerging technologies, including a target of 30,000 personnel in artificial intelligence by 2030.
Faisal Zaidi, Co-founder of Crypto Oasis Ventures, added that the UAE’s lifestyle and business community are significant factors in attracting and retaining nonresidents. He suggested that while there might be a slowdown in new organizations arriving, those already established are likely to stay.
The U.S., meanwhile, has seen a departure of crypto firms due to stringent government enforcement and the crypto community’s dissatisfaction with the SEC under Gary Gensler’s leadership. However, the situation could change, as indicated by the reintroduction of a bill by U.S. Senators Cynthia Lummis and Kirsten Gillibrand in July, aiming to create a regulatory framework for cryptocurrencies.
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