Middle East Becomes Global Crypto Hub as Regulations Mature: Binance GM – Coinpedia Fintech News

Middle East Becomes Global Crypto Hub as Regulations Mature: Binance GM – Coinpedia Fintech News

October 18, 2023
  • Cryptocurrency exchanges and firms are gravitating towards the Persian Gulf due to its growing regulatory frameworks.

  • Binance is a major player in the region, with over 600 employees in Dubai.

  • MENA s the world’s fastest-growing cryptocurrency market, with $566 billion worth of transactions in 1 year.

Alex Chehade, the General Manager of Binance FZE, reveals that a growing number of cryptocurrency exchanges and firms are gravitating towards a crypto haven in the Persian Gulf.

But, what’s drawing the companies to this region? And what role does Binance play in this all? Let’s find out.

Alex Chehade Speaks Out

Alex Chehade, who oversees Binance’s local office in Dubai, says that the region’s growing regulatory frameworks are an enormous appeal for startups and well-established industry players.

“Regulatory certainty and clarity stand out in the Middle East. We have a virtual-asset-specific regulator here in Dubai, VARA. We have ADGM with its virtual asset framework; we have Bahrain’s central bank is accepting of cryptocurrencies.”

Chehade thinks that regulators in other countries either lack the “bandwidth” to start regulating the industry or haven’t fully understood the ins and outs of the cryptocurrency environment. He makes a case for doing business in the region, where notable events like GITEX and the Future Blockchain Summit bolster the ecosystem.

The General Manager of Binance FZE points out the importance of stability in achieving long-term goals. In this regard, he notes the constructive role of the regulatory frameworks in these specific Middle Eastern nations.

Binance: A Catalyst for Web3

Additionally, Chehade emphasized Binance’s function as a catalyst for establishing Web3 businesses and startups in the area.

We’re an ecosystem enabler, we’re the biggest Web3 company in the world. You often see network effects with size and we’re seeing a healthy environment with big and small players.”

With over 600 employees, Binance is leaving a substantial mark on Dubai’s burgeoning cryptocurrency scene. Chehade reveals that Binance FZE has operated as a licensed exchange in Dubai for a year and a half, with distinct operations and custody from the company’s global activities.

Also Read: FTX’s Bankman-Fried vs. Binance’s Changpeng Zhao: What Went Wrong?

Backing from Visa’s Chopra

Akshay Chopra, vice president and head of innovation and design at Visa, confirmed Chehade’s views on the region’s positive regulatory stance in an earlier interview with Cointelegraph at the Blockchain Economy Dubai Summit.

As a board member of the MENA Fintech Association, Chopra cited the “forward-looking and inclusive view of blockchain and crypto solutions” as a significant factor in the development of the industry in the area. 

Chainalysis’ research underscores the Middle East and North Africa’s (MENA) remarkable growth as the world’s fastest-growing cryptocurrency market. Between July 2021 and June 2022, users in the region engaged in cryptocurrency transactions worth a staggering $566 billion.

The Forces Behind it All…

This cryptocurrency surge owes its momentum to the region’s welcoming regulatory climate and the escalating interest in digital assets. The Persian Gulf’s strategic location offers swift access to a substantial investor pool and prospects for partnerships with traditional financial institutions.

Also Read: Ripple’s XRPL Set to Dominate MENA Markets

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