Of crypto exchange Binance has had a hard time recently. For that reason, the platform is looking to the United Arab Emirates (UAE) as a possible home base.

The Benefits of UAE as a Home Base for Binance

Good crypto climate in UAE

In the UAE, an increasingly better climate for crypto companies is emerging. According to Alex Chehade, the general manager of Binance Dubai, there are plenty of reasons to shift a large part of Binance’s operations to the country.

One of the benefits is that UAE has a forward-looking body dedicated to crypto companies called the Virtual Assets Regulatory Authority (VARA). Clear frameworks have been drawn up and there are clear guidelines, unlike in most countries. According to Alex, the guarantee that operations can continue in the future is very important:

You don’t want to start operations where the rules are constantly changing. For large companies, you need predictability to make plans and realize budgets.”

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In addition, the country has a large group of people who are active in crypto. With more than 27% in fact, of the population that owns crypto, UAE ranks first worldwide. This number is mainly due to a large number of young people around the world, from Europe to Asia, moving to the country.

Binance in heavy weather

The Belgian Financial Services and Markets Authority (FSMA) recently decided to close Binance’s services in Belgium to strike. Binance is accused of offering services to Belgians from countries outside the European Economic Area (EEA), an action considered illegal by the FSMA.

The company is also attracting attention in the Netherlands back. From July 17, 2023, Dutch people will only be able to withdraw money from the platform. This decision follows the failure to obtain a license as a virtual asset service provider (VASP), required by Dutch anti-money laundering guidelines. Binance encourages users to withdraw their currency from the platform.