After US cryptocurrency exchange Coinbase announced the launch of its global derivatives platform, key company executives are meeting with industry leaders and policy makers from the United Arab Emirates.
On May 7, Coinbase posted on its blog that its CEO, Brian Armstrong, and part of the company’s executive team were scheduled to discuss the possibility of the United Arab Emirates “becoming a strategic hub” for the exchange. According to the company, it was working with regulators in the Abu Dhabi Global Market and the Dubai Virtual Assets Regulatory Authority as part of efforts to potentially expand in the region.
“[Los EAU son] exciting for us as a potential hub to build as well, an international hub for Coinbase that could serve not just the Middle East, but parts of Africa or other countries in Asia.”said Armstrong at the Dubai Fintech Summit on May 8. “I think the US right now is a little behind in terms of regulatory clarity and some of the rhetoric from the top.”
Great meeting with Minister of Economy HE Abdulla Bin Touq Al Marri in UAE @Economyae pic.twitter.com/1zIH5dZFeB
—Brian Armstrong️ (@brian_armstrong) May 8, 2023
Great meeting with the Minister of Economy HE Abdulla Bin Touq Al Marri in the United Arab Emirates
2 of May, Coinbase announced the launch of the Coinbase International Exchange, a platform that offers trading with crypto derivatives. The launch came at a time when the United States Securities and Exchange Commission could charge Coinbase with securities violations following the issuance of a notice from Wells in March. Although Armstrong has at times been critical of regulatory clarity affecting digital assets in the United States, he told shareholders in a first-quarter earnings presentation that he had no intention of moving his operations outside of the country.
“The region is emerging as a leader in the development of a web3 ecosystem, which makes it an attractive place to consider investing in”, the Coinbase blog said, referring to the UAE. “The vacuum created by other notable jurisdictions means that international counterparts such as the UAE are rushing to fill the regulatory vacuum.”
Prior to his SEC Wells notification, Coinbase officials, including Armstrong, had met with US policymakers to discuss cryptocurrency regulations in the country. The legal director, Paul Grewal said the company had met with SEC representatives “more than 30 times in the nine months” through March, but generally received no comment on its proposals.
The UAE has been opening up opportunities for crypto companies, ostensibly to attract capital and employment. Dubai established a legal framework for cryptocurrencies and created the Virtual Assets Regulatory Authority in March 2022, taking advantage of the emirate’s free trade zones with independent rules and regulations.
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