Binance might launch Trading Services in Dubai and Bahrain
Binance, the world’s largest cryptocurrency exchange, is planning to provide payment and trading services in Dubai. It intends to build its first headquarters in the Middle East and reclaim its reputation in France.
Binance is a cryptocurrency exchange situated in the Middle East:
The exchange is collaborating with local banks and employing country managers and compliance officials in Dubai and Bahrain in advance of the service’s launch in early June. Binance is making preparations for the future. The objective is to provide a comprehensive set of services that will enable full participation in the creation of Web 3, a future internet based on blockchain technology and decentralization.
“The emergence of crypto-assets is seen as vital to the development of the Web 3 ecosystem by Middle Eastern regulators. Cryptocurrency trading is one of the business types. We can extend the company throughout the region, and there are other opportunities outside trading.” Richard Teng, the regional leader for the Middle East and North Africa, is based in Dubai.
Binance is expanding throughout the Gulf region as well as Europe:
In December, Binance invited Teng, the former CEO of the Financial Services Regulatory Authority of Abu Dhabi Global Market, the city’s international financial hub, to manage the company’s Middle Eastern operations.
This happened in September 2021, when Binance’s Singapore affiliate, where Teng was based, withdrew its licensing application after the Monetary Authority of Singapore (MAS) requested that the exchange stop offering services to local citizens, claiming that it was possibly violating local regulations.
“We typically communicate with a single regulator in several Middle Eastern nations who has a uniform framework that includes banks, asset management, exchanges, and broker-dealers,” Teng added. “This reduces a lot of friction between a variety of agencies, which may have opposing views on how crypto should be regulated.”
According to a license from the Virtual Asset Regulatory Authority, the industry’s particular regulator, Binance will be allowed to deliver its services to pre-qualified investors and financial institutions in Dubai, which will later extend to include normal investors.
Why is it thought to be beneficial?
Teng, who worked for the MAS for 13 years and was the chief regulatory officer at the Singapore Exchange, feels that allowing retail engagement has merit.
“It’s important to distinguish between market risk and fraud risk. Regulators should focus on the latter, which also occurs in traditional finance “He went on to say.
“Investors should make their educated selections because the market risk is impossible to avoid.”
Individual investors are anticipated to be excluded from Hong Kong’s proposed crypto regulatory framework, which will be considered in the city’s legislature this summer. In Singapore, cryptocurrency firms are not allowed to sell their services to the general public.