Binance FZE chief explains the Middle East’s appeal for crypto firms

Progressive regulatory framework allows the UAE and Bahrain to attract major crypto firms. This was stated in an interview with Cointelegraph by Binance FZE CEO Alex Chihaid.

“What stands out in the Middle East is the clarity and certainty of regulation. In Dubai there is a dedicated virtual assets regulator: VARA. Also operating is ADGM […], Bahrain’s central bank. It’s easy to do business here,” — he explained.

According to Chihaid, regulators in other jurisdictions have not understood or spent enough time studying all the nuances of the cryptocurrency landscape. Perhaps they simply lacked the resources to start regulating the sector.

The Binance FZE CEO noted that firms need clarity to build long-term plans. The existing regulatory parameters facilitate this process.

According to the executive, Binance FZE staff has been operating as a regulated exchange in Dubai for one and a half years and conducts custody and trading operations on behalf of clients.

Chihaid was supported by Visa vice president and head of innovations and design Akshay Chopra.

“Regulators are looking to the future and are working with the local blockchain community, institutions, startups and entrepreneurs to develop a comprehensive view of how we [jurisdiction] can best position ourselves as a market and regulator,” — he explained.

In July 2023 Binance FZEobtained a baseline operating license to provide digital-asset-related services to institutional and qualified retail investors in Dubai.

Earlier, licenses to provide cryptocurrency services in the emirate were granted to Bitcoin exchanges Huobi, OKX, Blockchain.com, Crypto.com.

In February, Binance CEO Changpeng Zhao urged entrepreneurs to consider relocating to countries with more favorable regulation. Among them, he named Dubai (UAE), Bahrain and France.