After US-based cryptocurrency exchange Coinbase announced the launch of its global derivatives platform, key executives from the company are meeting with industry leaders and policymakers in the United Arab Emirates.
In a May 7 blog post, Coinbase said CEO Brian Armstrong and some of the company's executive team plan to discuss the UAE's potential to become a “strategic hub” for cryptocurrency exchanges. According to the company, it is working with regulators in Abu Dhabi Global Market and Dubai Virtual Assets Regulatory Authority as part of an effort to potentially expand into the region.
“We're excited about [the UAE] as a potential hub for building, an international center for Coinbase, not just serving the Middle East, but also parts of Africa or other countries in Asia,” Armstrong said at the Dubai Fintech Summit. May 8. “I think the US is a bit behind now in terms of regulatory clarity and some of the rhetoric at the top.”
On May 2, Coinbase announced the launch of Coinbase International Exchange, a platform offering cryptocurrency derivatives trading. The release comes as the SEC may charge Coinbase with securities law violations following the Wells notice in March. While Armstrong has at times been critical of regulatory clarity Affecting US digital assets, he told shareholders on a first-quarter earnings call that he has no intention of moving operations abroad. “The region stands out as a leader in the development of the web3 ecosystem, making it an attractive place to consider investing, said the Coinbase blog, referring to the UAE. “The vacuum created by other prominent jurisdictions means that international counterparts such as the UAE are racing to fill the regulatory void.”
Prior to Wells' notification, Coinbase officials, including Armstrong, had met with US policymakers to discuss crypto regulations in the country. Chief legal officer Paul Grewal said the company had "over 30 meetings over a nine-month period" with SEC representatives as of March, but had received little or no feedback on its proposals.
The UAE has steadily opened up opportunities for crypto companies and appears to be attracting capital and jobs. Dubai established a legal framework for cryptocurrencies and established the Virtual Assets Regulatory Authority in March 2022, using the UAE's f ree trade zones to develop separate regulations.
