Coinbase, the US-based cryptocurrency exchange, is reportedly considering using the United Arab Emirates (UAE) as a hub for its international service in the Middle East and other nearby regions. Coinbase’s VP of International & Business Development, Nana Murugesan, recently tweeted about UAE’s potential to be a strategic hub for the exchange. The exchange’s CEO, Brian Armstrong, praised UAE’s progressive regulatory efforts in the cryptocurrency space. He stated that UAE has a clear rule book published, a business-friendly environment and strong customer protections, making it the first dedicated cryptocurrency regulator in the world.
UAE’s potential as a hub for crypto innovation and investment
In a blog post, Murugesan explained the reasons why the exchange was considering expanding to UAE. According to the post, UAE has become the center of web3 innovation and a “key hub in the Middle East, Africa, and India as we explore crypto use cases that are relevant for the broader region.” Coinbase believes that UAE’s location, large expatriate population, state of the economy, other demographic qualities, and regulatory clarity on crypto make it an ideal country for investment.
Coinbase’s plans for expansion in UAE
Murugesan wrote that Coinbase intends to register and license the Coinbase International Exchange in UAE and is working with the Abu Dhabi Global Market (ADGM) regulators to achieve this. The exchange is also in discussion with Dubai’s Virtual Assets Regulatory Authority (VARA) and seeks to be licensed by the regulatory agency. VARA is currently working on a retail framework for crypto trading activities in the country. The recent regulatory hurdles faced by Coinbase in the United States have forced it to expand its operations abroad. Earlier this month, the exchange launched an international derivatives exchange targeted at professional traders. The exchange is licensed by Bermuda Monetary Authority (BMA).