Coinbase, the leading American cryptocurrency exchange, is currently exploring the opportunities offered by the United Arab Emirates for its international expansion. Regulators in the region are known for their favorable regulations for cryptocurrencies, unlike in the United States where legal uncertainty persists and where large platforms are regularly penalized.
Coinbase explores the potential of the United Arab Emirates
According to a press release dated May 7, the management team of Coinbase, the largest cryptocurrency exchange in the United States in terms of traded volume, will spend a week in the United Arab Emirates to assess the region’s potential for the development of its business.
So, Brian Armstrong, CEO of Coinbase, is expected to deliver a speech at the inauguration of the Dubai Fintech Summit which runs from May 8-9. According to its own website, the event aims to cement Dubai’s status as a rising fintech hubincluding hosting world-renowned policymakers and players to “contribute to the development of essential tools, regulations and frameworks to shape the future of fintech and finance”.
According to the press release, the United Arab Emirates could potentially be a new strategic hub for Coinbaseon the one hand for its regulations favorable to cryptocurrencies and more broadly to new technologies, but also because the region could serve as a gateway between Europe and Asia for the crypto exchange.
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Why the Emirates?
Coinbase’s ambition is clear: consolidate its status as a leader on American soil while deploying its tentacles internationally and reach one billion users. To achieve this, the exchange of Brian Armstrong multiplies the announcements, as the very recent launch of Coinbase International Exchange allowed thanks to the allocation of a license in Bermuda.
In parallel, the platform has already been working for some time with the regulators of the Abu Dhabi Global Market (ADGM) and with the Virtual Assets Regulatory Authority (VARA) in order to obtain new licenses to develop its activity locally.
According to Coinbase, the United Arab Emirates is a strategic point in particular because of its high rate of expatriate population, which reaches 85%. In doing so, they are the second area that sends the most funds outside its borders after the United States. In addition, the United Arab Emirates and Saudi Arabia hold more than 70% of the combined individual wealth of the Gulf Cooperation Council, which also hosts Kuwait, Bahrain, Qatar and the Sultanate of Oman.
Ultimately, the United Arab Emirates is an undeniably more favorable host country for crypto companies than the United Stateswhich, on the contrary, continue to maintain a legal vagueness while penalizing the largest platforms through the ax of the Securities and Exchange Commission (SEC), which Coinbase and Kraken have already suffered.
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Source: Press release
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