Binance, crypto firms optimistic about UAE amid potential US regulatory shift
Binance and other cryptocurrency firms based in the United Arab Emirates are optimistic that the country will remain a hotspot for virtual assets despite a potential shift to the United States should the Western superpower become a more crypto-friendly jurisdiction.
The “regulation by enforcement” regime in the U.S. has pushed global crypto firms to move to locations such as the UAE, the United Kingdom, Switzerland, and Singapore. However, the idea that companies could potentially return to the U.S. should there be a change in direction was floated during a panel discussion on Dec. 11 at the Global Blockchain Congress event in Dubai .
Highlighting the UAE’s approach toward technology and innovation, Alex Chehade, Binance’s general manager for the Middle East and North Africa, said the local government has built infrastructures around numerous initiatives that encompass not just AI but also Web3, sustainability and other verticals:
“[People exiting] wouldn’t be the worry. We’d probably be worried [about], ‘do we have enough infrastructure for people coming in?’”
“The track record is there… We’ve got the education system, healthcare system, the roads, the trains. Where else would you relocate? To the other jurisdictions? They’re not issuing Visas. They don’t have the infrastructure,” he added.
Chehade said Binance, which recently withdrew its fund manager license in Abu Dhabi and saw its former CEO Changpeng Zhao plead guilty as part of a $4.3 billion settlement with U.S. agencies, will stay in the region, with its custody license in the UAE capital, and operational minimum viable product permit for exchange and brokerage services in Dubai.
Meanwhile, Feras Al Sadek, managing partner at blockchain private investment firm Ghaf Capital Partners, argued that the UAE leads through its “regulation by education,” highlighting local regulators’ approach of actively supporting projects through various engagements, including conferences and meetups. He said:
“It’s very hard to find regulators… fighting, educating and supporting these companies. So that I think is a key differentiator between us and the rest of the world.”
Al Sadek also pointed out the UAE’s goal of becoming a tech industry leader by employing thousands of personnel in emerging technologies, including 30,000 in artificial intelligence by 2030.
Related: Dubai regulator grants crypto license to Bahrain’s CoinMENA
Crypto Oasis Ventures co-founder Faisal Zaidi said that the UAE’s lifestyle and business community have made it appealing for nonresidents to stay, adding, “You come in with a plan [to live here short-term], but because of how your life is here… the communities and the ecosystem, people end up staying. He added:
“Maybe there [will be] a slowdown in newer organizations coming, but the ones that are here are going to stay.”
The wave of government enforcement against crypto companies in the U.S. has pushed away crypto firms, with industry leaders suggesting crypto startups should avoid the jurisdictions for the time being and the U.S. Securities and Exchange Commission (SEC), headed by chair Gary Gensler, earning the ire of the crypto community.
However, the landscape may be shifting toward a more favorable direction for the crypto community, with U.S. Senators Cynthia Lummis and Kirsten Gillibrand reintroducing a bill to create a crypto regulatory framework in July.
The government of India may consider stablecoin regulations in its Economic Survey 2025-2026, while the Reserve Bank of India (RBI) takes a “cautious” approach to crypto and pushes for a central bank digital currency (CBDC), revealing a divergence in policy recommendations.
The government will “present its case” for stablecoins in the annual report published by India’s Ministry of Finance, which outlines key policy recommendations and the state of the economy, business publication MoneyControl reported, citing an official familiar with the matter.
However, the central bank continues to urge a “cautious” approach to stablecoins, according to RBI Governor Sanjay Malhotra. Speaking at the Delhi School of Economics on Thursday, he said:
“We have a very cautious approach towards crypto because of various concerns that we have. Of course, the government has to take a final view. There is a working group which was set up earlier, and they will make a final call as to how, if at all, crypto is to be handled in our country.”
Malhorta dismissed concerns that India needs to respond to stablecoin innovation led by the United States, following the passage of the GENIUS bill in June, because India has a robust domestic digital payments infrastructure, unlike the US.
This includes the Unified Payments Interface (UPI), a 24/7 payments network, the National Electronic Funds Transfer (NEFT), which settles payments hourly and is also available 24/7, and the Real-Time Gross Settlement (RTGS) system for large transactions, Malhorta said.
The government of India regulating cryptocurrencies would mark a significant departure from its long-held anti-crypto stance and would legitimize digital assets in the world’s most populous country, spurring crypto adoption and potentially raising asset prices.
Related: Indian court steps in over WazirX XRP distribution tied to 2024 hack
Officials continue to cast doubt on “unbacked” cryptocurrencies
In October, Piyush Goyal, India’s minister of commerce and industry, said the government neither encourages nor discourages cryptocurrencies, but he also cast doubt on crypto as an asset class.
Most cryptocurrencies do not have sovereign backing or underlying assets that give them value, Goyal said.
Magazine: India mulls new crypto ban to support CBDC, Lazarus Group strikes again: Asia Express
Consulting company Cornerstone Research reported a significant drop in the number of enforcement actions implemented by the current leadership of the US Securities and Exchange Commission, compared to that under the previous administration.
In a report released on Wednesday, Cornerstone reported that, under SEC Chair Paul Atkins, the number of enforcement actions against public companies and their subsidiaries decreased by about 30% in fiscal year 2025 compared to those in fiscal year 2024.
The company said the data was “consistent with the general pattern for other fiscal years when the SEC administration changed,” referring to former Chair Gary Gensler.
Although the financial regulator dropped investigations and lawsuits against several crypto companies following Gensler’s departure, the report only referenced the SEC’s case against Coinbase, dropped in February.
Earlier this week, the SEC’s Division of Examinations released its examination priorities for the fiscal year through 2026, not mentioning cryptocurrencies or digital assets.
“The dismissal is consistent with the stated priorities of the current SEC administration,” said Cornerstone. “Chair Atkins has signaled that a ‘top priority’ of his administration will be ‘to provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach.’”
Related: Crypto class actions on pace to nearly double in 2025
The SEC operated with limited staff for 43 days amid a US government shutdown that ended last week, curtailing its enforcement and oversight capabilities. Following its return to normal operations, the agency released its examination priorities for 2026 and continued reviewing applications for initial public offerings, exchange-traded funds, and other matters within its purview.
Awaiting market structure bill in Congress
As of Tuesday, Republican leaders on the Senate Banking Committee expected to pass a comprehensive bill on digital asset market structure by early 2026.
The initial timeline, anticipating the legislation being signed into law before the end of the year, was delayed by the government shutdown and pushback from Senate Democrats on DeFi provisions.
If passed, the law could grant the Commodity Futures Trading Commission significant authority to regulate digital assets. Atkins said that, under the SEC’s potential authority, it would not be “lax” on enforcement, likely including cases involving crypto.
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