Cryptocurrency Firms Optimistic About UAE Being a Virtual Asset Hotspot

Binance and other cryptocurrency firms based in the United Arab Emirates (UAE) remain positive about the country's status as a hotspot for virtual assets. The UAE's favorable regulatory environment continues to attract global players.

Nonetheless, there's the potential shift of some firms to the United States should it adopt a more crypto-friendly approach, as per Cointelegraph.

Shift from the US to the UAE

The "regulation by enforcement" approach in the US has prompted many global crypto firms to relocate to countries like the UAE, the United Kingdom, Switzerland, and Singapore. The wave of government enforcement against crypto companies in the US has led industry leaders to advise startups to avoid the country for the time being.

Newsbreak reported that the US Securities and Exchange Commission, headed by chair Gary Gensler, has faced criticism from the crypto community for its regulatory stance.

However, during a panel discussion at the Global Blockchain Congress event in Dubai, the idea of a potential return to the US in the event of policy changes was raised.

UAE's Innovative Approach and Supportive Regulatory Environment

Highlighting the UAE's commitment to technology and innovation, Alex Chehade, Binance's general manager for the Middle East and North Africa, emphasized the government's efforts in building infrastructure for various initiatives. These initiatives encompass not only AI but also Web3, sustainability, and other verticals.

Chehade stated that Binance will maintain its presence in the region despite recent developments, including the withdrawal of its fund manager license in Abu Dhabi and the legal proceedings involving its former CEO.

UAE's Feras Al Sadek, managing partner at blockchain private investment firm Ghaf Capital Partners, discussed the UAE's "regulation by education" approach. He commended local regulators for actively supporting projects through conferences and meetups, fostering engagement with the crypto community.

Al Sadek also highlighted the UAE's ambition to become a leading tech industry hub by employing a significant number of personnel in emerging technologies, including 30,000 in artificial intelligence, by 2030.

Despite potential shifts in the global crypto landscape, crypto firms in the UAE express confidence in the country's supportive regulatory framework and commitment to innovation. The UAE's approach to fostering engagement, education, and infrastructure development positions it as a favorable destination for crypto ventures.

Photo: Kanchanara/Unsplash

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