UAE’s International Operations Potential Tested By Coinbase
“I think the U.S. right now is a little bit behind in terms of regulatory clarity and some of the rhetoric from the top,” said Brian Armstrong at the Dubai Fintech Summit.
After Coinbase launched its global derivatives platform, executives are engaging with UAE industry leaders and policymakers.
Coinbase CEO Brian Armstrong and other executives were to discuss the UAE “to be a strategic hub” for the crypto exchange. The company said it was working with Abu Dhabi Global Market and Dubai’s Virtual Assets Regulatory Authority to potentially expand into the region.
“[The UAE is] exciting for us as a potential hub to build as well, an international hub for Coinbase that could serve not only in the Middle East but parts of Africa or other countries in Asia,” said Armstrong at the Dubai Fintech Summit on May 8. “I think the U.S. right now is a little bit behind in terms of regulatory clarity and some of the rhetoric from the top.”
Crypto derivatives trading platform Coinbase International Exchange launched on May 2. After a March Wells notice, the SEC could charge Coinbase with securities crimes. In a Q1 earnings call, Armstrong told shareholders he would not move operations abroad, despite his criticism of US digital asset regulation.
“The region is standing-out as a leader in the development of a web3 ecosystem, making it an attractive location to consider investing in,” said the Coinbase blog, referring to the UAE. “The vacuum created by other notable jurisdictions means that international counterparts, such as the UAE, are racing to fill the regulatory gap.”
Coinbase personnel, including Armstrong, discussed crypto rules with U.S. policymakers before their SEC Wells notice. Chief legal officer Paul Grewal said the firm met with SEC staff “more than 30 times over nine months” as of March but received no input on its recommendations.
To attract wealth and jobs, the UAE has slowly opened up crypto prospects. Dubai used its free-trade zones to create the Virtual Assets Regulatory Authority in March 2022 and legalize cryptocurrency.
