Coinbase targets expansion in the Middle East, will the UAE become a crypto hotspot?

Written by: bitcoinist

Compiled by: Blockchain Knight

Coinbase CEO Brian Armstrong praised the United Arab Emirates for its forward-looking approach to crypto regulation.

In a recent tweet, Armstrong commended the UAE as the first country to have a dedicated crypto regulatory authority, issuing a clear rulebook and creating a customer-friendly business environment.

However, as Armstrong made these remarks, the U.S. Securities and Exchange Commission is cracking down on crypto, leading to speculation that Coinbase may be considering expanding into the Middle East.

The UAE has attracted many crypto companies with its favorable regulations and friendly business environment.

In February of this year, the Central Bank of the UAE announced plans to launch a digital currency, which could further boost the country's crypto industry.

The UAE's proactive stance on crypto is reflected in its regulatory approach.

In 2019, the UAE Securities and Commodities Authority introduced ICO regulations requiring issuers to register with regulators and meet certain disclosure requirements.

The country's central bank also issued guidelines for crypto asset activities, including AML and CTF measures.

Additionally, according to Bitcoinist, Coinbase has announced the launch of a new global exchange to expand its business outside the U.S. market.

This move by Coinbase comes as the company faces legal troubles with the U.S. Securities and Exchange Commission, which has been investigating whether Coinbase's operations may violate securities laws.

The new exchange is set to launch in the coming months, allowing Coinbase to expand into new markets and serve global customers.

The company has not announced in which countries the exchange will be launched, but it is expected to significantly broaden its operations.

Moreover, Armstrong's visit to the UAE highlights the growing interest of Middle Eastern investors and regulators in crypto.

As more countries around the world adopt favorable stances on crypto, the industry may continue to grow, with more companies looking to expand into new markets.

Coinbase has recently been in the spotlight, facing regulatory challenges from the U.S. Securities and Exchange Commission.

Earlier this year, the regulator issued a notice to the company, raising concerns about the future of the popular exchange.

In a recent interview with CNBC, Armstrong openly expressed his dissatisfaction with the U.S. Securities and Exchange Commission, accusing the regulator of conducting a "crusade against the crypto industry."

Armstrong also criticized SEC Chairman Gary Gensler, accusing him of holding an "anti-crypto stance."

Despite these challenges, Armstrong stated that Coinbase will not leave the U.S. market.

Reports indicate that Armstrong retracted his suggestion last month that the company might be forced to relocate its headquarters overseas.

Armstrong emphasized that Coinbase remains committed to serving customers in the U.S. and around the world.

Additionally, Armstrong mentioned that if regulatory challenges persist, the company might consider relocating outside the U.S.

In April of this year, at a fintech conference in London, Armstrong stated that the U.S. "has the potential to be an important crypto market," but currently lacks the necessary regulatory transparency.

Armstrong pointed out that other regions of the world have taken a more "thoughtful approach" to crypto regulation, such as the European Union, which has already passed comprehensive crypto legislation.

He also praised the UK's welcoming attitude towards the industry, noting that the UK has become a key market for Coinbase.