Crypto Leaders Turn to the UAE As Frustration Grows With US Regulators

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June 25, 2023

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Some cryptocurrency leaders are turning to the United Arab Emirates as others are showing irritation with US regulators.

Saqr Ereiqat, co-founder of venture-building firm Crypto Oasis, told CoinTelegraph that the UAE checks all the boxes in terms of countries’ “regulatory infrastructure, digital infrastructure and its ability to attract a global pool of talent.” 

The UAE checks all those boxes, Ereiqat said. 

Ereiqat spoke at the Dubai Fintech Summit this past week. 

Ereiqat also told CoinTelegraph that the UAE has taken a more proactive approach to crypto regulation when compared to the US. 

Frustration in the US 

Binance’s Chief Strategy Officer Patrick Hillman criticized crypto regulations in the US this week, saying enforcement of those rules have “been very confusing over the past six months.”

Hillman admitted that the country’s status as a “weird place” in terms of crypto rules has made it difficult for Binance to work in the country. 

Coinbase has been going so far as to possibly leave the US if regulators don’t clarify their approach to regulating digital assets.

“Anything is on the table, including relocating or whatever is necessary,” he said last month during the Innovate Finance Global Summit Tuesday after former UK Chancellor George Osbourne asked whether he could see Coinbase leaving the US, The Telegraph reported. 

Regulators’ stance

US Securities and Exchange Commission Chair Gary Gensler has repeatedly said that most cryptocurrencies are securities, while calling on crypto platforms to register with the agency.

US regulators have brought enforcement actions against both Binance and Coinbase in the past few months.

The SEC sent Coinbase a “Wells notice,” in March, threatening the crypto exchange with legal actions in connection to its staking service Coinbase Earn and other products.

The US Commodity Futures Trading Commission sued Binance and its founder Changpeng Zhao in March for allegedly knowingly offering unregistered crypto derivative products in the US, which is against the law. 

CZ tweeted “4” in response to the CFTC’s lawsuit — his code for showing that he does not agree with something.