Here’s Why Crypto Titans Plot Daring Shift To Abu Dhabi

As crypto markets grapple with regulatory uncertainties in major hubs like the U.S., Abu Dhabi is swiftly positioning itself as an attractive destination for cryptocurrency companies. Recent weeks have seen the likes of Copper Technologies, Paxos Trust, and eToro Group Ltd, among other crypto titans, turning to the vibrant city, drawn by a combination of investor-friendly policies, a growing network of partners, and a forward-thinking regulatory approach.

Abu Dhabi’s Crypto Appeal Grows

Amid the tumultuous global landscape for cryptocurrency companies, Abu Dhabi is emerging as a haven, with companies like Copper Technologies Ltd., Paxos Trust Co., and eToro Group Ltd. choosing it for expansion. Notably, the Abu Dhabi Global Market (ADGM) is becoming a hotspot, offering a supportive environment for crypto businesses, according to a recent Bloomberg report.

Meanwhile, the report suggested that several executives praise the city’s strategic advantages, including a burgeoning network of partners, a supportive regulatory stance, and deep-pocketed investors.

In a recent interview, Copper CEO Dmitry Tokarev highlighted Abu Dhabi’s enthusiasm for blockchain-based financial markets. On the other hand, ADGM’s Financial Services Regulatory Authority is aligning itself with innovation in digital assets, as outlined in its 2024 business plan.

Meanwhile, with a decade-long track record, the ADGM is gaining respect, especially when compared to Dubai’s Virtual Assets Regulatory Authority (VARA), which is solely focused on the crypto space. In addition, Walter Hessert, Head of Strategy at Paxos Trust Co., emphasized the logical choice of ADGM, citing the opportunity to operate under British common law and the regulator’s commitment to consistency and clarity in regulations.

Also Read: Polygon Unveils Unified Portal For Web3 Interactions, MATIC Price To Rally?

Strategic Moves and Challenges in the UAE Crypto Hub

While Abu Dhabi has successfully attracted prominent names, Dubai’s VARA still boasts a higher number of registered firms in its ecosystem. For instance, Binance Holdings has gained operational approval from VARA but faced delays in securing a regional regulator’s approval for a global headquarters.

Meanwhile, in a recent turn of events, Binance, the prominent cryptocurrency exchange, has opted to withdraw its application for an investment fund license in Abu Dhabi. The decision comes amid escalating regulatory scrutiny.

For context, BV Investment Management, Binance’s UAE subsidiary, chose not to pursue the license for the Abu Dhabi collective investment fund and subsequently withdrew its filing. It’s noteworthy that the registration process with Abu Dhabi’s Financial Services Regulatory Authority (FSRA) commenced in November of the previous year.

Meanwhile, despite the growing appeal, the UAE’s crypto industry remains smaller than traditional hubs.

However, businesses are strategically seeking licenses in both Dubai and Abu Dhabi, capitalizing on the local and international market potentials. As the crypto landscape evolves, the UAE aims to solidify its position, showcasing a commitment to robust crypto regulations and enforcement actions against illicit activities.

Also Read: Global Stablecoin Settlements Already At 50% to That of VISA and Mastercard

The post Here’s Why Crypto Titans Plot Daring Shift To Abu Dhabi appeared first on CoinGape.

dailynoti coindeskcrypto cryptonewscrypto bitcoinmymagazine mybitcoinist cryptowithpotato mycryptoslate fivenewscrypto findtechcrunch journalpayments nulltxcrypto newsbtcarea