Summary:
- Coinbase CEO Brian Armstrong hailed legislators in the United Arab Emirates for developing reasonable guidelines for crypto businesses and policies to protect users.
- Indeed the UAE was one of the first jurisdictions to establish a dedicated body for crypto oversight and publish a rulebook for the nascent industry.
- Armstrong’s remarks come as his crypto company explores off-shore locations due to the souring regulatory landscape in America.
A Coinbase executive team and its CEO Brian Armstrong are in the United Arab Emirates (UAE) to engage local regulators on crypto policies as the company expands to offshore jurisdictions.
The visit to the UAE, particularly to meet with policymakers in Dubai and Abu Dhabi, comes amid souring relations with regulators like the U.S. Securities and Exchange, and effort to establish operations outside America’s borders.
The UAE ???????? deserves a lot of credit for being forward thinking on crypto. First dedicated crypto regulator in the world, a clear rule book published (!), business friendly plus strong customer protections. Really enjoying my visit so far.
— Brian Armstrong ????️ (@brian_armstrong) May 8, 2023
Dubai’s Crypto Allure
In March of 2022, the UAE Prime Minister declared his intention to establish the UAE as a key player in the future of crypto. The region’s crypto ecosystem has since gained significant growth, welcoming industry players like Binance and Kraken.
Last year, Dubai’s Virtual Assets Regulatory Authority was formed to issue a crypto regulatory framework, laying out a concrete licensing regime for crypto service providers. Last month, the registration authority of ADGM issued a consultation paper to explain the proposed Distributed Ledger Technology Foundations Regulations 2023.
Coinbase’s UAE Strategy
Armstrong admired the UAE for its proactive and progressive regulatory approach to crypto in a tweet, saying the region “deserves a lot of credit for being forward thinking on crypto”.
‘There is no doubt that UAE has the potential to be a strategic hub for Coinbase, amplifying our efforts across the world, and this week we are delighted to be on the ground in Dubai and Abu Dhabi meeting key local stakeholders and commending in person the role they have played in creating such a welcoming environment.
CEO Armstrong will provide a keynote address at the inaugural Dubai Fintech Summit while Coinbase is also working with Abu Dhabi Global Market (ADGM) regulators to further expand the licensing and availability for Coinbase International Exchange.
Coinbase has also been engaging with Dubai’s Virtual Assets Regulatory Authority (VARA), a dedicated regulator for virtual assets, as they put forward a comprehensive retail framework built on the principles of economic sustainability and cross-border financial security. “This expands our global footprint, helping get us closer to bringing 1 billion users to crypto,” Brain said.
When asked to comment on the regulatory clampdown from the U.S., the exchange’s CEO said Coinbase is “100% committed to the U.S.”
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Today, Coinbase, one of the world’s leading cryptocurrency exchanges, announced it has been engaging in discussions with United Arab Emirates (UAE) lawmakers as a way to both protect and position the exchange for further growth.
This move comes in response to the increasing regulatory burden the United States government has been placing on exchanges like Coinbase, which is forcing them to look for alternative markets.
Coinbase has already announced plans to expand into the UAE market, citing the region’s “progressive attitude” toward cryptocurrency and digital assets. In an effort to build relationships with their new potential customers, Coinbase executives have been holding meetings with UAE lawmakers in an effort to better understand current regulatory frameworks and discuss potential partnerships.
Coinbase is also exploring potential partnerships with a variety of UAE financial institutions, including banks and payment systems in the country. Additionally, Coinbase is working with the government to develop a regulatory framework that would enable users to legally trade digital assets.
Coinbase’s decision to engage with UAE legislators is further evidence of the company’s commitment to expanding its reach and adapting to the changing cryptocurrency landscape. With the United States government becoming increasingly aggressive in its crackdown on exchanges, companies like Coinbase will increasingly look to new markets. By forging new relationships with various governments, Coinbase is paving the way for long-term, sustainable growth.
Coinbase’s decision to move forward with its UAE expansion shows the company’s commitment to becoming a truly global company. As cryptocurrencies continue to move into the mainstream and regulators try to catch up, Coinbase is taking the initiative to embed itself in key markets. This proactive stance is sure to position the company for success in the years to come.
