Major cryptocurrency exchanges and businesses are increasingly drawn to the Middle East, specifically the UAE, Dubai, and Bahrain, due to their forward-looking regulatory frameworks. Alex Chehade, the general manager of Binance FZE in Dubai, emphasizes that the regulatory certainty and clarity provided by these regions have become significant factors attracting startups and established players in the cryptocurrency industry.
The Middle East boasts regulatory structures that cater specifically to virtual assets, such as the Virtual Asset Regulatory Authority (VARA) in Dubai and the Abu Dhabi Global Market’s (ADGM) virtual asset framework, making it conducive for crypto-related businesses. Bahrain’s central bank has also been accepting of cryptocurrencies.
Chehade contends that many regulators in other parts of the world have yet to grasp the intricacies of the crypto landscape or lack the capacity to regulate the sector effectively. Events like GITEX and the Future Blockchain Summit have further contributed to the region’s appeal by creating a business-friendly environment.
He underscores the importance of regulatory certainty for businesses to make long-term plans, and the existing regulatory parameters in these Middle Eastern jurisdictions facilitate this process. Additionally, Binance plays a significant role in supporting the growth of Web3 companies and startups in the region.
Binance FZE, operating as a regulated exchange in Dubai for a year and a half, has ring-fenced custody and operations, separated from its global operations. It employs approximately 600 people in Dubai.
Akshay Chopra, Visa’s Vice President and Head of Innovation and Design, echoed these sentiments regarding the region’s progressive regulatory outlook at the Blockchain Economy Dubai Summit. As a board member of the MENA Fintech Association, Chopra highlighted the forward-looking and inclusive perspective of local regulators, fostering growth in the blockchain and crypto sector.
Chainalysis research indicates that the MENA region has become the world’s fastest-growing cryptocurrency market. Transaction volumes in the region between July 2021 and June 2022 reveal that users received $566 billion in cryptocurrencies.
