Abu Dhabi is Abu Dhabi stepping up its efforts to attract crypto-focused businesses. It aspires to be the Middle East’s leading crypto hub. the emirates are already among the global leaders developing a crypto-friendly regulatory environment. It is after having established an initial framework in 2018. The emirates hope to attract more regulated digital asset exchanges with a comprehensive regulatory regime. Already, two of the exchanges — Matrix Exchange and Midchains — are operational in Abu Dhabi. A third, DEX, will begin entire operations soon. Additionally, the whole ecosystem in Abu Dhabi is working together to make it easy for all the actors in that space to shift there. It is also essential to develop a legal framework. He added that they are to find the pain points everywhere to eliminate them and develop a powerful, robust regulatory framework. Abu Dhabi’s determination to become a crypto hub is part of the city-effort state’s restructuring of its economy. They are trying to shift away from reliance on oil and gas and toward a greater emphasis on technology. Abu Dhabi provides a fintech sandbox for the private sector to test their products in a live environment. Hence, ensuring they meet the UAE’s strict anti-money-laundering (AML) and other regulatory standards.
Binance announced that it had also received approval for a license-in-principle in Bahrain. Binance had applied to the CBB for a license as part of its plans to become a fully regulated centralized cryptocurrency exchange. CBB is the first regulator in the Middle East North Africa (MENA) region to grant in-principal approval to a Binance entity, according to an official statement from the crypto exchange. CBB’s in-principal approval still requires Binance to complete the entire application process, which is expected to be completed soon. A challenge for regulators is ensuring they don’t stifle innovation while trying to protect investors. The UAE and Abu Dhabi appear to be striking the right balance in regulating cryptocurrency. However, not in such a way that they stifle the growth and exploration that will continue for long.