Binance, the world’s largest cryptocurrency exchange, might shift its headquarters to Dubai from Seychelles as the Chief Executive Officer Changpeng Zhao looks for options, said sources in the crypto industry.
As Binance faces a challenging year following regulatory issues in some countries, the company is looking for a new home and that could be Dubai.
As per reliable sources, Binance’s CEO is expected to announce during his trip to Dubai that the company’s operations will be moving from Seychelles to the cutting-edge Emirati city.
The company has denied any wrongdoing and it has been months since the CEO confirmed that the company’s future steps would include: one, to increase Binance’s international compliance team, which oversees ensuring adherence to external and internal laws. Two, to expand “existing strong partnerships” for compliance. Three, to localize Binance’s operating system to comply with local regulations despite the denials from the company.
So, what pushed this decision? And what infrastructure can Dubai present for the new-age tech firms?
Organizational obstacles
Binance has not confirmed the news that it will move its operations to Dubai. Still, the company’s spokesperson confirmed to TRENDS: “We are keeping all of our options open, and we are considering multiple places in order to meet user needs, regulatory requirements, and of course, a place that suits our needs as a company.”
Furthermore, Binance assured that it’d provide updates as appropriate.
Binance recently registered three companies in Ireland and is currently setting up several regulatory companies worldwide, according to a news agency.
On the other hand, the Commodity Futures Trading Commission in the US has contacted possible witnesses in recent months, according to Bloomberg, as part of the investigation into whether Binance or its staff have profited from exploiting the company’s clients. Authorities in the United States are also looking into whether the corporation has abused this data in various ways, including by trading customers’ orders internally before they are completed.
As Zhao explained in a blog post published in July, Binance has been subjected to an overeager focus on regulations, despite the platform’s commitment to avoiding insider trading and safeguarding users from unethical practices.
UK’s financial authorities prevented the cryptocurrency exchange platform from operating in the country, and Singapore’s “Investor Alert” listed it as a “high-risk” investment in September 2021. A criminal complaint was also filed in Thailand, accusing the exchange of operating illegally without a license. Binance is also at risk in Italy, Japan, and Germany due to regulatory issues.
A Sneak Peek
Founded in 2017, Binance has steadily risen to the top of the world’s most popular cryptocurrency exchange list based on trading volume.
Compared to last year, Zhao said, Binance’s worldwide compliance team and advisory board have increased by 500 percent, and they intend on tripling in size by 2021. The market value of the company is approximately US$1.3 billion.
What can Dubai offer?
With a series of steps, including regulatory facilities and tax reductions, Dubai hopes to attract the world’s largest innovation companies and lead the GCC region in technology and science.
VK and Telegram founder Pavel Durov expressed his admiration towards Dubai, mainly because of the low taxes. “In the West, we pay half the profits, so you have to work for the government for 180 days every year,” Durov said after moving his company to Dubai.
Many major international companies in the technology sector have chosen to locate their headquarters in Dubai Silicon Oasis over other locations in the UAE. As a result, during the first 45 days of 2021, the Dubai Silicon Oasis attracted more than 500 new businesses, bringing the total number of firms registered in the zone up to 3,955 by the first half of February, according to data compiled by the National Economic Register in Emirates.