Middle East Regulatory Transparency Drives Crypto Industry Growth – Binance FZE Head

According to the CEO of Binance FZE, major crypto exchanges and businesses are being drawn to the fabled crypto oasis around the Persian Gulf.

Alex Chehadeh, who heads Binance's local operations in Dubai, told Cointelegraph's Ezra Regera that progressive regulatory frameworks in the region are a big drawcard for both startups and established industry players:

“What stands out in the Middle East is regulatory certainty and transparency. Here in Dubai we have a virtual-asset-based regulator: VARA. [Virtual Assets Regulatory Authority]. We have ADGM. [Abu Dhabi Global Market] With virtual property structure, [and] We at the Central Bank of Bahrain are accepting cryptocurrencies.

Chehade believes that regulators in other jurisdictions either haven't taken the time to learn the cryptographic landscape and infrastructure, or simply don't have the “bandwidth” to begin regulating the sector.

“So you're seeing events like GITEX and the Future Blockchain Summit, as well as international companies coming here because it's easy to do business.”

The general manager of Binance FZE added that businesses definitely need to create long-term plans and the regulatory measures in these special jurisdictions facilitate that process.

Chehade highlighted Binance's role as an incentive for Web3 companies and startups to set up in the region.

“We're an ecosystem enabler, we're the largest Web3 company in the world. You often see network effects at scale, and we're seeing a healthy environment with big and small players.”

Chehade said Binance now employs around 600 people in its Dubai operation and will play its part in growing the industry. He added that Binance FZE has been operating as a regulated exchange in Dubai for a year and a half and has been separated from the rest of its global operations by ring fencing and operations.

Related: Dubai lures AI, Web3 enterprises with 90% supported business license

In an earlier interview with Cointelegraph at the Blockchain Economy Dubai Summit, Visa Vice President and Head of Innovation and Design Akshay Chopra echoed Chehade's sentiments regarding the region's progressive regulatory outlook.

As a board member of the MENA Fintech Association, Chopra highlighted “forward-looking and comprehensive blockchain and crypto solutions” as a key driver of growth for the sector in the region.

“Regulators are really looking forward and working to bring a more inclusive perspective from the local blockchain community, institutions, startups, entrepreneurs about the future and how we can best position ourselves as a market and as a regulator.”

According to research by blockchain analysis firm Chainalysis, the Middle East and North Africa (MENA) region is the fastest growing cryptocurrency market in the world. Transaction volume in the region shows that users received $566 billion in crypto between July 2021 and June 2022.

Additional reporting by Ezra Regera.

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