The supportive regulatory and business-friendly environment of UAE is making it an increasingly attractive hub for global crypto enterprises, according to the Coinbase CEO.
The Dubai FinTech Summit recently turned the spotlight on the United Arab Emirates (UAE) as an increasingly attractive hub for crypto businesses, outpacing even the United States in terms of regulatory framework and business friendliness.
Saqr Ereiqat, co-founder of venture-building firm Crypto Oasis, shared his views with on why the UAE is transforming into an ideal haven for crypto enterprises. He underscored the UAE’s remarkable strengths that make it a compelling choice for businesses in the digital currency sphere.
Ereiqat emphasized three critical aspects businesses need to consider when selecting a location for their operations: a supportive regulatory infrastructure, a state-of-the-art digital infrastructure, and an ability to pull in top-tier talent from across the globe. Ereiqat affirmed that the UAE ticks all these boxes, making it an alluring destination for crypto initiatives.
In a comparison with the United States, Ereiqat conceded that both nations have their unique set of advantages and drawbacks in the crypto domain. However, he held that the UAE demonstrates a more forward-thinking stance in formulating crypto regulations. According to him, the UAE’s regulatory model is simpler and more conducive to business than the multifaceted and fragmented regulatory landscape in the United States.
UAE’s Wealth of Crypto Capital and Rising Interest
Beyond regulatory considerations, Ereiqat drew attention to the UAE’s considerable capital reserves, a factor that could significantly bolster the crypto sector in the region. Add to this the escalating interest in digital currencies, and the UAE emerges as an enticing hotspot for crypto ventures.
Recent statistics reveal over 1,800 Web3 organizations already established in the region, providing employment to more than 8,000 individuals. Ereiqat described the Dubai FinTech Summit as a critical event, bringing together various stakeholders in the fintech sector. The presence of crypto and Web3 leaders at the summit served as a testament to the surging interest and uptake of these technologies in the region.
Coinbase CEO Takes on the UAE’s Crypto Climate
In an interesting turn of events, Brian Armstrong, the CEO of Coinbase, echoed similar sentiments during his participation in a fireside chat at the Dubai FinTech Summit. Armstrong highlighted that the United States may not be in the lead when it comes to regulatory clarity, positioning the UAE as a potential global hub for Coinbase’s expansion.
JUST IN: Coinbase is considering establishing an international hub in the UAE 🇦🇪
"The UAE has been more forward thinking than the US" – CEO pic.twitter.com/2HwCuNj6eJ
— Bitcoin Magazine (@BitcoinMagazine) May 8, 2023
In contrast to Armstrong’s optimism towards the UAE, Brad Garlinghouse, Ripple’s CEO, voiced his grievances with U.S. regulations. He revealed the company’s looming $200 million expenditure in its defense against the U.S. Securities and Exchange Commission.
With the UAE taking strides in crafting a conducive regulatory environment for crypto businesses, it’s capturing the attention of global crypto giants. This shift in the landscape could propel the UAE into the limelight as a preferred destination for crypto enterprises worldwide.
