An official announcement from Coinbase chief executive Brian Armstrong revealed that part of his team plans to visit the United Arabs Emirates (UAE) to evaluate the suitability of establishing a universal strategic hub. Armstrong stated that Coinbase top executives have arranged for a meeting with crypto bigwigs and policymakers from the Arabs country.
In addition, the main agenda for the long-awaited meeting aims at exploring the possibility of transforming the UAE into a burgeoning “strategic hub” for Coinbase. In his address, Armstrong confirmed that his team has been working closely with regulators from Abu Dhabi Global Market to support the crypto exchange to expand into the region compliantly.
Suitability of UAE Market
He added that the Dubai Virtual Asset Regulatory Authority (VARA) provided abiding support to crypto exchange to pursue new regional opportunities. Speaking at the Dubai Fintech Summit, Armstrong admitted that Coinbase’s entrance to UAE aims at providing crypto-related services to customers from the Middle East, Africa, and other parts of Asia.
He underscored that Coinbase expansion to the region aimed at establishing the most significant global hub in UAE. Armstrong lamented that the current U.S. crypto clampdown and lack of regulatory clarity compelled the firm to pursue overseeing markets.
Recently, the crypto exchange launched Coinbase International Exchange, providing users with a derivatives trading platform. The successful launch coincided with the Securities and Exchange Commission’s (SEC) potential action against the crypto exchange for contravening with law.
In his previous report, Armstrong urged the watchdog agencies to provide regulatory clarity in crypto assets. He assured the Coinbase stakeholders during the Q1 earnings meeting that the crypto exchange had no plans to pursue new markets outside the U.S.
Will Coinbase Establish Strategic Hub in UAE?
Nonetheless, the Coinbase team persuaded the U.S. legislators to create a friendly crypto environment. During the meeting, the participants focus on developing clear, sufficient, and sustainable crypto regulations.
Speaking at the meeting, Chief Legal Officer Paul Grewal revealed that he had proposed the amendment of the crypto regulation to the SEC more than 30 times. In his address, Armstrong lamented that out of the many proposals he shared, the SEC failed to respond.
However, following the issuance of a Well Notice alleging that the crypto exchange engaged in trading unregulated securities Coinbase team decided to seek a suitable market overseas. After a long pursuit, the Coinbase team agreed to expand to UAE.
Review of UAE Crypto Regulation
Reflecting on Armstrong’s report, he argued that UAE had gained prominence in Web3 development. The region’s gradual growth in emerging technologies has compelled Coinbase and other fast-growing firms to invest in the UAE.
Besides the impressive growth in Web3, Armstrong stated that the current regulatory gaps in some developed countries obliged the UAE policymakers to pursue suitable solutions. A scrutiny of the UAE crypto regulations revealed that the government had created endless opportunities for regional digital asset service providers.
Additionally, the UAE prioritized developing friendly regulations to attract foreign investments to the region. As such, Dubai launched a crypto regulatory framework in 2022.
Under the new crypto regulations Virtual Assets Regulatory Authority (VARA) ensured that the investors garnered endless benefits from the Emirate free trading zones.