Middle East Regulatory Clarity Boosts Crypto Industry Growth, Says Binance FZE Chief

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The general manager of Binance FZE claims that significant cryptocurrency exchanges and companies are being drawn to a fictitious crypto-oasis in the Persian Gulf. 

Confessions of Alex Chehade 

Alex Chehade, who oversees Binance’s local office in Dubai, says that the region’s growing regulatory frameworks are an enormous appeal for startups and well-established industry players.

He says, “Regulatory certainty and clarity stand out in the Middle East. We have a virtual-asset-specific regulator here in Dubai, VARA. We have ADGM with its virtual asset framework; we have Bahrain’s central bank is accepting of cryptocurrencies.”

What About Regulators of Other Countries?

Chehade thinks that regulators in other countries either lack the “bandwidth” to start regulating the industry or haven’t fully understood the ins and outs of the cryptocurrency environment. He claims that while doing business here is simple, events like GITEX and the Future Blockchain Summit take place. 

The general manager of Binance FZE adds that organizations need stability to develop long-term goals, and the regulatory frameworks in these particular nations are aiding in that process.

Binance – ‘an ecosystem enabler’

Additionally, Chehade emphasized Binance’s function as a catalyst for establishing Web3 businesses and startups in the area. “

We’re an ecosystem enabler, we’re the biggest Web3 company in the world. You often see network effects with size and we’re seeing a healthy environment with big and small players.”

According to Chehade, Binance already employs over 600 employees in its Dubai-based business and plans to keep contributing to the sector’s growth. He points out that Binance FZE has been running as a licensed exchange in Dubai for a year and a half and that its operations and custody are separated from the rest of the company’s worldwide activities.

Visa Vice-President on Middle East Regulators 

Akshay Chopra, vice president and head of innovation and design at Visa, confirmed Chehade’s views on the region’s positive regulatory stance in an earlier interview with Cointelegraph at the Blockchain Economy Dubai Summit.

As a board member of the MENA Fintech Association, Chopra cited the “forward-looking and inclusive view of blockchain and crypto solutions” as a significant factor in the development of the industry in the area. 

He claims that the Middle East’s regulators anticipate the future and collaborate with the local blockchain community, institutions, startups, and entrepreneurs to develop a very inclusive perspective on what the future holds and how we can be best positioned as a market and regulator.

According to research from blockchain analysis company Chainalysis, the MENA area has the world’s fastest-growing cryptocurrency industry. Users in the area got $566 billion in cryptocurrencies between July 2021 and June 2022, according to transaction volume in the area. 

All in all …

The region’s hospitable regulatory climate and rising interest in digital assets are the main forces behind this crypto paradise. Due to its advantageous location, the Persian Gulf offers quick access to a sizable investor pool and prospective collaborations with conventional financial institutions.