The Abu Dhabi Global Market, through its regulatory agency, the Financial Services and Regulatory Authority (FSRA), has given Binance the nod to operate in the United Arab Emirates. Binance exchange will now offer healthy competition to FTX, which was granted its license last month.
To oversee its operations in the new market, Binance will establish its regional headquarters in Dubai. This is in line with CEO Changpeng Zhao’s mission to make Dubai the Cryptocurrency revolution center.
Reacting to the approval, Richard Teng, the Binance regional head for the Middle East and North Africa (MENA), has confirmed to the Arab News that the leading exchange plans to offer financial freedom to investors in the region.
The Binance UAE approval is now the second in the region after Bahrain’s licensing.
The UAE leads the Way in Crypto Adoption
Teng also revealed that the goal of Binance is to promote the adoption of Cryptocurrencies in the resource-rich country and the Gulf region at large.
The approval is timely as the Abu Dhabi Global Market FSRA accepts submissions on DeFi. The nation is seeking consensus from stakeholders as it develops a framework for regulating decentralized financial assets such as Stablecoins and other digital tokens.
The USA ‘test-adapt-scale’ Model Is Effective
Teng has a remarkable experience in managing financial markets. With 6 years at the helm of the Abu Dhabi Global Market, the MENA head heaps accolades on the ‘test-adapt-scale’ model that the UAE has adopted.
The model directs the regulator to develop a framework that responds to risks inherent to Cryptocurrencies while supporting growth and innovation. Unlike the US SEC, which applies a blanket policy that categorizes securities, digital tokens, and commodities as securities, the model responds to different aspects of the value chain.
As regulators in China and India ban cryptos, the UAE will be a haven for digital assets. Additionally, the lack of a concise and effective regulatory framework in the US and the EU will stifle the adoption of DeFi and Crypto, making the UAE the prime market for Cryptocurrencies.
Incorporating Crypto into the Economy
The UAE regulator is cognizant that Crypto adoption is inevitable. Therefore, as the oil-rich nation divests oil resources, it aims to develop an economy that is diverse and futuristic. One of the ideal options for creating a resilient economy of the future is supporting and promoting the adoption of Crypto and Blockchain. Hence Binance will play a vital role in bringing the UAE dream to fruition.
Binance is not new to UAE; in December, the exchange signed a partnership with the Dubai World Trade Center Authority. The agreement aims to develop and manage the principal’s international digital asset ecosystem. The program is on course to actualization, and Binance has already hired experts to develop the ecosystem.