- Web3 and crypto are huge opportunities for financial and technological diversification in the UAE
- Coinbase is moving offshore due to the lack of clarity on crypto regulations in the US
Coinbase CEO Brian Armstrong and VP Nana Murugesan are in the UAE to discuss and launch strategic developments in the Middle East.
The UAE in particular is expanding its crypto and Web3 operations with clear regulations and even a dedicated digital asset regulator, as well as reliable protection for investors and traders.
The region can be a strategic hub
For all these reasons, the Middle East can be a strategic hub for the leading exchange. Web3 and crypto are huge opportunities for financial and technological diversification for the UAE, Murugesan tweeted.
The exchange and Abu Dhabi regulators are working together to issue a license and make Coinbase International Exchange available locally.
As Bankless Times wrote, Coinbase recently launched an international derivatives exchange based in Bermuda. The exchange is seeking further licenses and partnerships as Dubai’s dedicated virtual assets regulator develops a retail framework with digital assets.
The local market is lucrative – more than 11% of people in the UAE currently own crypto.
Coinbase’s attack on US regulators
Armstrong decided to move offshore a while ago due to the lack of clarity on crypto regulations in the US.
While the exchange remains committed to its home market after positive quarterly results, it is suing the US Securities and Exchange Commission (SEC) to get answers to questions, such as how the regulator treats digital assets through securities laws. The SEC has been ordered by a court to respond to the exchange’s complaint in a few days.
According to Paul Grewal, chief legal officer of the exchange, people are entitled to file appeals to resolve legal disputes through the Petition Clause. He has also urged SEC Chair Gary Gensler to comply and respond to the complaints, citing a legal precedent – Duryea v. Guarnieri, 564 U.S. 379 (2011).
