Coinbase Eyes UAE as Potential International Crypto Hub

Sahana Kiran
Source – Unsplash

It is not uncommon for crypto companies based in the U.S. to relocate to other regions due to the uncertain regulatory landscape in the country. Several governments across the world have been introducing clear regulations for the crypto industry. But the U.S. government is not there yet. Meanwhile, the United Arab Emirates [UAE] has been praised for its efforts to regulate the crypto market. This has lured several organizations into the region and crypto exchange Coinbase could be next in line.

In a recent blog post titled “The UAE: Recognising the transformative potential of the cryptoeconomy,” Coinbase lauded the country’s initiatives in the crypto space. The firm also said,

“There is no doubt that UAE has the potential to be a strategic hub for Coinbase, amplifying our efforts across the world. It further serves as a particularly strategic bridge between Asia and Europe — two of our existing focus international regions to date.”

Additionally, it appears that Coinbase’s executive team, along with the CEO and co-founder Brian Armstrong, is currently in the UAE for a series of meetings with policymakers, regulators, crypto founders, and clients. The CEO has also been scheduled to give a keynote address at the Dubai Fintech Summit.

Earlier today, Armstrong took to Twitter to credit the UAE for its inclination towards crypto.

Will Coinbase finally make the big move?

Coinbase received a Wells notice from the Securities and Exchange Commission [SEC]. This is a formal notification that the agency intends to bring an enforcement action against the company. The SEC cited possible violations of securities laws as the reason behind this notice. Since then, the firm has been pushing for clearer regulations from the SEC. It has also called for more engagement between the crypto industry and regulators to establish a clear regulatory framework.

There were rumors that Coinbase would leave the U.S. market. This company recently filed a lawsuit against the SEC regarding specific rules for crypto assets. However, CEO Armstrong confirmed that the exchange is still fully committed to the U.S. market.

While it’s unclear if Coinbase will completely migrate to the UAE, recent developments suggest that the exchange may soon expand its services to the Middle East, as well as parts of Africa and Asia.