According to the general manager of Binance FZE, major cryptocurrency exchanges and companies are being attracted to a proverbial crypto oasis around the Persian Gulf.
Alex Chehade, who heads Binance’s local operation in Dubai, tells Cointelegraph journalist Ezra Reguerra that the progressive regulatory frameworks in the region are a major draw for startups and established industry players:
“What stands out in the Middle East is regulatory certainty and clarity. We have a specific regulator for virtual assets here in Dubai: VARA (Virtual Asset Regulatory Authority). “We have ADGM (Abu Dhabi Global Market) with its virtual asset framework, (and) we have the central bank of Bahrain accepting cryptocurrencies.”
Chehade believes that regulators in other jurisdictions either have not realized or taken the time to learn the ins and outs of the cryptocurrency landscape or simply lack the “bandwidth” to begin regulating the sector:
“So we’re seeing events like GITEX and the Future Blockchain Summit, as well as global companies coming here because it’s easy to do business.”
The general manager of Binance FZE adds that companies need certainty to be able to create long-term plans, and the regulatory parameters that exist in these specific jurisdictions facilitate that process.
Chehade also highlighted Binance’s role as a catalyst for Web3 companies and startups to establish themselves in the region.
“We are a facilitator of the ecosystem, we are the largest Web3 company in the world. You often see network effects related to size, and we are seeing a healthy environment with large and small players.”
Chehade stated that Binance now employs around 600 people in its Dubai-based operation and will continue to play its role in fostering the industry. He adds that Binance FZE has been operating as a regulated exchange in Dubai for a year and a half and is segregated from the rest of its global operations with custody and protected operations.
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In a previous interview with Cointelegraph at the Dubai Blockchain Economy Summit, Akshay Chopra, vice president and head of innovation and design at Visa, echoed Chehade’s sentiments regarding the region’s progressive regulatory outlook.
As a board member of the MENA Fintech Association, Chopra highlighted the “inclusive and forward-thinking vision of blockchain and crypto solutions” as a key growth driver for the sector in the region:
“Regulators are really looking forward to and working with the local blockchain community, institutions, startups and entrepreneurs to come up with a very inclusive perspective on what the future is and how we can be better positioned as a market and as a regulator.”
Research from blockchain analytics firm Chainalysis indicates that the Middle East and North Africa (MENA) region is the fastest growing cryptocurrency market in the world. Transaction volume in the region reveals that users received $566 billion in cryptocurrency between July 2021 and June 2022.
Additional reporting by Ezra Reguerra.
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