As Tensions Escalate With US Regulators, Coinbase Looks To Strengthen Ties With UAE

Coinbase COIN is engaging with regulators in the United Arab Emirates (UAE), namely the Abu Dhabi Global Market (ADGM), to expand the licensing and availability of its cryptocurrency exchange.

Nana Murugesan, Coinbase VP of International and Business Development, predicts that this move would amplify Coinbase's efforts worldwide, acting as a bridge between Asia and Europe.

The UAE currently boasts over 500 startups, with Dubai taking the lead on Web3 innovation and Hub71 in Abu Dhabi providing crucial access to blockchain and virtual asset infrastructure.

See Also: UAE Emirate Goes All-In On Crypto, Launches Digital Asset Oasis

Coinbase is also in talks with Dubai's Virtual Assets Regulatory Authority (VARA) regarding a comprehensive retail framework.

The UAE's position as the second-largest global sender of remittances and the sixth-largest cross-border wealth management center makes it a prime location for Coinbase's expansion, Murugesan said. With over 85% of the UAE population being expatriates and the country holding approximately $500 billion of non-UAE citizen individual wealth, the region is set to play a significant role in Coinbase's goal of bringing cryptocurrency to one billion users.

Murugesan added that regional regulators have issued, or are in the process of issuing, business-friendly "crypto regulations" that focus on consumer protection, regional leadership, and compliance with money laundering guidelines.

Also Read: Bitcoin Accepted: European Country Moves To Allow Payments For Government Services

Coinbase's execs are currently in the UAE meeting with policymakers, regulators, crypto entrepreneurs, and clients. CEO and co-founder Brian Armstrong is set to deliver a keynote speech at the first-ever Dubai Fintech Summit, taking place on May 8-9.

Coinbase's inaugural visit to both Dubai and Abu Dhabi takes place as the company's relationship with U.S. regulators becomes increasingly strained.

In March, the U.S. Securities and Exchange Commission (SEC) warned Coinbase about potential securities law violations.

Coinbase subsequently filed a lawsuit against the SEC in April, urging the agency to establish clear regulations for digital assets.

Recently, a U.S. court instructed the SEC to address Coinbase's complaint within ten days.

In addition to these developments, Coinbase launched an international derivatives exchange in Bermuda last week. This new platform allows users to trade perpetual futures with current leverage of 5x.

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