Dubai attracts the coupling of large crypto companies with tailor -made regulations

crypto companies are hurrying to settle in Dubai after it has started to offer licenses for virtual assets, which makes the golf state a recent jurisdiction that tries to become a paradise for the global crypto industry.

Exchange Bybit, who announced last week to move her global headquarters from Singapore to Dubai, follows the large industry players Crypto.com, FTX and Binance to gain a foothold in the city.

The enthusiasm for Dubai comes among the crypto companies, since their hopes for Singapore have disappeared as a hub for digital assets. While Singapore has only approved a handful of cryptics that have applied for licenses, Dubai has attracted several heavyweights in the industry in the few weeks since the start of his license program.

Singapore was seen as an emerging crypto center in Asia after China had been hard against digital assets last year. Now the crypto caravan has moved on because some companies target a more receptive regulatory system on the Golf.

Changpeng Zhao, CEO of Binance, who moved from Singapore to Dubai, said that the government of the Gulf State attracted crypto companies with its “open way of thinking and a business -friendly attitude”.

Binance, the largest crypto exchange in the world according to trade volume, advised itself on the rules according to which it is now regulated in Dubai. In December, Binance signed an agreement with the Dubai World Trade Center, a tax -free business park to advise on the regulatory landscape of cryptocurrencies in the Emirate. The Virtual Asset Regulatory Authority, which was founded at the beginning of this month, gave Binance a license.

Zhao said Binance campaigned for the formation of a tailor -made regulatory authority, described the decision as "very excellent" and praised the Dubai authorities as "the smartest regulatory authorities and government officials all over the world".

Dubai's enthusiastic introduction of virtual assets, however, raised the alarm in some financial circles, in view of the recent decision of the Financial Action Task Force, a global money laundering supervisory authority, the United Arab Emirates on their so-called "gray list" of the extended currencies to prevent procedure to prevent the flow of dirty money.

lawyers from Great Britain and the USA as well as former supervisory authorities said that a license from the Emirate would probably not help to convince the western supervisory authorities that crypto exchanges are under reasonable supervision.

Great Britain has also made a move of becoming a “global center” for crypto after city minister John Glen had stated in a speech on Monday that the country will be attractive for “companies that have no fixed basis”. However, lawyers point out that the government must bring the British supervisory authorities, including the FCA, to be more open to crypto operators.

Dubais crypto charm offensive quickly attracted several companies. FTX Europe, which is based in Switzerland, said in March that he would build a regional headquarters in Dubai after receiving a license there. Crypto.com, with its headquarters in Singapore, opened an office in the Middle East in the city last week. Bitoasis, a crypto exchange based in Dubai, also received a preliminary license last week.

Binance has dubai, where it already employs around 200 employees in three offices, as a regional headquarters, said Zhao. In comparison, he said: "The government of Singapore is a little more careful."

The Singapore unit of Binance dropped its application for a license to operate a crypto business in the country after the supervisory authorities had instructed Binance Singapore to stop all crypto transfers with the global stock exchange Binance.com that put the supervisory authority on an investor warning list and said: “Can violate local law.

Overall, the Monetary Authority of Singapore (MAS) only issued four crypto licenses after receiving 176 applications for supervision. More than a hundred companies have been rejected, while about several dozen still hope for green light.

"The very low success rate at MAS discourages the crypto sector in Singapore," said Chia-Ling Koh, director of the law firm Osborne Clarke, who put together the numbers.

The MAS also introduced a comprehensive ban on advertising for cryptocurrency at the beginning of this year, which, according to Nizam Ismail, managing director of the crypto advisory company Ethikom, was interpreted as a “strong discovery of the MAS for offering crypto to consumers”. "It seemed a bit hard to me. It was announced and implemented overnight."

In a step that the ministers said that he would protect Singapore from "reputation risks", the legislator also tightened the controls this week by adopting new rules that the crypto companies in the city state will prevent them from making foreign business without a license.

XUE KAI Pang, Managing Director of Tokocrrypto, a crypto exchange in the nearby Indonesia, said: "Singapore definitely loses something from his gloss and attractiveness. There are more open countries like Dubai."