Binance announces operations in Dubai
Binance, which is the largest global crypto exchange, recently announced that it will roll out a phased approach to launching its products and services in Dubai. The top brass at Binance made the announcement, stating that they hope to work alongside policymakers in the regions with the goal of establishing a regulatory framework that would enable widespread crypto adoption throughout the UAE. But what does this mean for investors?
Dubai is an attractive place to live
Dubai has long been considered an attractive place to live and invest for foreign executives and expats. These recent announcements will likely bolster that sentiment, especially among the younger demographic of those aged 18-35, 40% of whom are said to hold cryptocurrency with plans to use it in the coming years towards purchasing goods and services.
The meteoric rise of cryptocurrencies around the globe has already prompted governments, such as the current regime in El Salvador, to adopt the decentralized monetary system, and thus far, it has worked to great effect. It remains to be seen what role cryptocurrency will play in Dubai in the coming years, but what's clear is that the way has been paved for those wanting to secure equities via crypto transactions in the region.
Crypto is on the rise globally
It’s also clear that cryptocurrency is here to stay. Visa’s new crypto-backed card reported an impressive 2.5 billion USD worth of transactions in the first fiscal quarter of 2022 alone, which is a figure that’s likely to inflate as more governments establish regulatory frameworks, such as the one being discussed with Binance in the UAE.
It makes sense to assume that for those who hold significant amounts of Bitcoin Dubai would be an attractive shelter for their crypto assets. Being able to invest in tangible property, such as may soon be possible in the real estate sector, would be an ideal way to hedge against global monetary uncertainty, especially in the wake of the current oil sector volatility in the west.
Dubai is attracting international crypto firms
Binance isn’t the only exchange to announce operations in Dubai. Recently, ByBit relocated its operations headquarters from Singapore to Dubai, which was no doubt in response to the new digital asset laws adopted by the UAE.
Given the potential security that this legislation offers large corporations, it's safe to assume that other crypto firms will follow suit. Time will tell how this all plays out, but for the time being, it seems as though Dubai is a safe bet for cryptocurrency investors.