October 19, 2023

Binance FZE Head: Crypto Regulation in Middle East Enjoys Certainty, Clarity

Cointelegraph's Interview with Chehade

Cointelegraph’s Interview with Chehade

Cryptocurrency exchanges and businesses are increasingly attracted to a new crypto hub emerging around the Arab Gulf, according to the General Manager of Binance FZE, Alex Chehade.

In an interview with Cointelegraph, Chehade stated that the progressive regulatory frameworks in the region are a major incentive for both startups and established industry players.

“What stands out in the Middle East is regulatory certainty and clarity. We have a virtual-asset-specific regulator here in Dubai: VARA [Virtual Assets Regulatory Authority]. We have ADGM [Abu Dhabi Global Market] with its virtual asset framework, [and] we have Bahrain’s central bank accepting of cryptocurrencies,” Chehade noted.

Chehade thought that regulators in other parts of the world have not fully understood or taken the initiative to learn about the cryptocurrency world, or they may simply lack the capacity to start regulating the industry. He further stated that events like GITEX and Future Blockchain Summit, as well as international businesses flocking to this region, are a testament to the ease of doing business here.

According to him, businesses require certainty to create long-term plans and the regulatory parameters in place in specific jurisdictions aid in this process.

Chehade further mentioned that Binance currently employs approximately 600 people at its Dubai-based operation and will continue contributing to the industry’s growth. He also stated that Binance FZE has been operating as a regulated exchange in Dubai for one and a half years, with ring-fenced custody and operations separate from its global operations.

According to research conducted by blockchain analysis firm Chainalysis, the Middle East and North Africa (MENA) region has emerged as the world’s fastest-growing cryptocurrency market. The region’s transaction volume indicates that users received a whopping $566 billion in cryptocurrency between July 2021 and June 2022.

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