Is Binance fleeing to the UAE?

Due to numerous allegations, Binance is encountering great resistance in the USA. Reason enough for European authorities to distrust the crypto exchange as well? At least such a picture has been emerging for a few weeks. The Netherlands made the start, followed by Great Britain, Belgium and finally Austria. Despite the recently passed MiCA regulation, Binance is being pushed out of Europe to a certain extent. The next destination: The United Arab Emirates (UAE)?

For Alex Chehade, there are many good reasons why the country could become the next big crypto hub. Opposite Cointelegraph confirmed the general manager of Binance Dubai that the UAE is a prime destination for crypto companies looking for a clear path forward. “Binance is in the UAE because we have been given confidence that we can build operations for the future,” said Chehade. A security that is apparently no longer guaranteed in the USA and Europe.

With the help of Binance: New crypto hub?

Aside from the targeted regulation, the influx of young people into the UAE is leading to a faster establishment of digital assets than in other locations. Data from World of Statistics According to the report, almost 30 percent of the total population in the UAE own cryptocurrencies. This puts the country in first place, ahead of the USA or, for example, Singapore.

The Binance manager sees one reason in immigration from Europe and Asia. The overall population is also “younger”. We know that “younger people have a more positive attitude when it comes to virtual assets.” You don’t see that so often in other crypto hubs, it goes on to say.

Binance has already received a license as an anchor company in the Dubai World Trade Center in March 2022. The crypto exchange has been looking for a connection to the new crypto hub in the desert for some time. As part of a 2021 agreement Binance wants to help the national authorities to make the location more attractive for the crypto industry. The relationship could be all the more important now, after the turmoil in the US and Europe.

UAE: With regulation to the goal

The United Arab Emirates (UAE) introduced its first crypto regulation back in 2018. However, it will then take another four years for Web3 companies to establish themselves in innovative cities such as Dubai. In any case, the megacity has been driving blockchain development for several years and even has its own crypto payment system. In addition, the country on the Persian Gulf also wants to expand the mining sector.

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But despite the extensive regulation, crypto companies still have problems with regulated access to banks. The reason for this is the country’s complications with the Financial Action Task Force (FATF). This makes access to the international banking system and ultimately the business of the crypto industry more difficult.

However, the UAE is working flat out on this. As part of new regulations, for example, the issue of privacy coins is prohibited. Experts | expect an easing of FATF restrictions by the end of the year. This should help the country grow into a new crypto location. Whether Binance will participate remains to be seen.