UAE to become a crypto investment hub post new regulations , trailing Singapore

Crypto firms are rushing to set up shop in Dubai UAE after it announced its virtual asset licenses, according to a recent report.

It's been reported that the Gulf state's new regulations are turning it into a global crypto industry haven. With the announcement of ByBit's move to Dubai, the cryptocurrency exchange joins the likes of Coinbase, FTX, and Binance in making the city their new home.

The crypto industry's enthusiasm for Dubai comes as their hopes for Singapore as a digital asset hub have faded. While Singapore has approved only a few of the crypto groups that applied for licenses, Dubai has attracted several industry heavyweights in the few weeks since its licensing scheme was launched.

Following China's crackdown on digital assets last year, Singapore was viewed as a burgeoning Asian crypto hub. The crypto caravan has now moved on, as some companies seek a more receptive regulatory regime in the Gulf.

Changpeng Zhao, CEO of Binance, who recently relocated from Singapore to Dubai, stated that the Gulf state's government has enticed crypto companies with its "open mindset and a business-friendly attitude."

After consulting with its users, Binance has agreed to be regulated in Dubai as the world's largest crypto exchange by trading volume. In December, Binance signed an agreement with Dubai World Trade Center, a tax-free business park, to advise on the regulatory landscape of cryptocurrencies in the emirate. For the first time in its history, Binance has been licensed by the newly formed Virtual Asset Regulator Authority (VARA).

Zhao stated that Binance had lobbied for the establishment of a bespoke regulator, calling the decision "very excellent" and praising Dubai authorities as "the smartest regulators and government officials anywhere in the world."

cryptocurrency: The recent decision by the Financial Action Task Force (FATF) to place the United Arab Emirates on its "grey list" for virtual assets has sparked concern in some financial circles.

"Singapore is definitely losing some of its shine and attractiveness," Xue Kai Pang, CEO of Tokocrypto, a crypto exchange in Indonesia, said. Dubai is an example of a more open country.``

The Dubai World Trade Center Authority has recently announced that it will also be regulating crypto mining in the city.

Even if an emirate license is granted, western regulators will still be skeptical that crypto exchanges are properly regulated, according to lawyers and former regulators in the United Kingdom and the United States.

Following John Glen's announcement on Monday that the UK wants to become a "global hub" for crypto, the country has also made an effort to be attractive to "firms that don't yet have a settled base". The government will, however, need to persuade British financial authorities, including the Financial Conduct Authority (FCA), that crypto businesses are legitimate.