According to the CEO of Coinbase, UAE will be a possible international hub because of its strategic location that connects Asia and Europe.
Coinbase Global Inc., a cryptocurrency exchange, is exploring establishing an international hub in the United Arab Emirates. The company is in a standoff with regulators in the United States. The CEO, Brian Armstrong, mentioned in an interview with Bloomberg TV that they are searching for a location to serve a long list of countries worldwide. The UAE is a suitable option as it has the potential to expand and cater to markets in the Middle East, Africa, and Asia.
During a panel discussion at the Dubai FinTech Summit 2023, CEO of Coinbase, Brian Armstrong stated that the UAE is taking the lead in the crypto industry and has the potential to become an international hub. The region, which acts as a “strategic bridge” between Asia and Europe, is already a focus area for the company. Armstrong has previously expressed concern over the lack of clarity in US crypto regulation and hinted at the possibility of relocating. However, he confirmed that Coinbase has no plans to leave the US, as it is an important market. Armstrong also acknowledged that regulators in the UAE are more progressive than those in the US.
Coinbase has been dealing with challenges such as a decline in the market and a complex regulatory system in the United States. In January, the company had to reduce its workforce by 20%. Adding to its concerns, the US Securities and Exchange Commission issued a March notice warning of a potential lawsuit against Coinbase for various business operations. This has left Coinbase needing more clarity about its future.
Numerous investigations into cryptocurrencies in the United States have led companies to consider moving their operations to financial centers in other countries. Places like Dubai, Singapore, and Hong Kong have become increasingly attractive to those involved in the cryptocurrency industry. Coinbase, for example, has established an international derivatives exchange in Bermuda, where it has obtained a license to operate.
Source: Bloomberg
