Exploring New Horizons – CoinBase, Circle, and Bittrex Move To MENA
It looks like the crypto/blockchain scene is shifting overseas, as companies like Circle, Bittrex, and Coinbase increasingly find their new home in the UAE and the wider MENA region. Tim Draper, the founder of DFJ VC, has sounded the alarm, stating the US economy and American workers, especially those who are homeless, could all suffer due to the issues surrounding taxes and regulations. Just this week, it was revealed Brian Armstrong, the Coinbase CEO and Co-Founder, was in the UAE to mingle with blockchain innovators, introducing more of this company's products/services and potentially furthering the move of often-influential American-based outfits to the Middle East and Eurasia. This sharp, notable transition towards an international market appears to only be increasing and growing more and more, as the sector increasingly exports its services offshore.
At the much-anticipated Dubai Fintech Summit graced by the esteemed His Royal Highness, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance as its patron, Armstrong is sure to deliver a noteworthy keynote address. Crypto and Web3 technologies present the UAE with chances to allocate modernization and boost economic development, enabling this nation to function as a link between Europe and Asia—places that have been pinpointed by the business. Considering this, one could suggest that the markets of both these regions are ripe for activities to unfold, should CoinBase seek to expand its existence into them.
CoinBase has been making headway in strengthening their global reach by partnering with both the Abu Dhabi Global Market (ADGM) and the Virtual Assets Regulatory Authority (VARA) in Dubai. With a comprehensive, consumer-based system in place, built on long-term economic sustainability and global financial reliability, the tech giants are now providing even wider access to their International Exchange, embracing the crypto world and its 1 billion plus users while taking a step forward in the development of cryptocurrencies.
Miriam Kiwan, an associate of Raiven Capital, graciously hosted a dinner in Dubai to signal Circle's interest in the MENA region. This initiative underscores the opportunities that have been made available thanks to new Web3 infrastructure. One particular appeal to investors is the reaction of the UAE's neighbouring jurisdictions. These proactive measures to close the regulatory gap left by more well-known locales have made the area an attractive target for meaningful investments. Apart from America's CoinBase, Circle is turning their eye to the MENA region and attempting to take advantage of the lucrative opportunities presented.
Jeremy Allaire, CEO of Circle Internet Financial, suggested during a Bloomberg interview that US pre-existing regulatory rules and qualms about its banking system had resulted in the minimising value of the company's USD Coin currency. This notion was further corroborated when the Securities and Exchange Commission (SEC) took judicious steps against digital currency exchange site Bittrex in March 2023 after they publicised their departure out of the US market. Bittrex proclaimed it was economically infeasible to remain in the present US regulatory and budgetary atmosphere and so they had to reject American clientele.
It seems that the digital currency industry is more than welcome in the United Arab Emirates and in Dubai, especially with Stephen Stonberg, CEO of Bittrex Global, the crypto exchange, citing his opinion on that in an interview with Bloomberg. Ali Jamal, the CEO of Cryptos Consultancy - a blockchain and crypto licensing firm based in the UAE - further spoke on the matter with a LinkedIn post, revealing that there is surging demand for virtual asset operations in Dubai. VARA regulations - set in motion, according to Jamal - are giving a further push to Dubai's digital assets landscape. As such, it is expected that Dubai will benefit from the increasing influx of crypto exchanges in the Middle East.
The AG of New York State, Letitia James, has recently taken an actionable move by proposing a law which will impose effacing stipulations on cryptocurrency, to protect insurers, customers and the entire economy. This policy of action will ascertain more revelation and protect shareholders, resembling the way other sectors of finance are regulated. This ability of action denotes a sign of things to come, in light of all the activity in MENA region, particularly UAE and Bahrain, which implies the potential of them to be the contemporary crypto Silicon Valley.
