Coinbase Executives have visited the United Arab Emirates to see if the country would be favorable to setting up their global presence. Due to regulatory uncertainties, the crypto exchange has been looking for alternatives to the U.S. and now is weighing whether the UAE could be a perfect match for it.

Coinbase actively searching for a way out from U.S. legal battles

The exchange’s Chief Executive Officer Brian Armstrong has taken another shot at the U.S. regarding its crypto treatment claiming that they are trailing behind. He made these comments at the Dubai FinTech Summit on May 8, 2023.

In a May 7 blog post, Coinbase stated that its CEO Brian Armstrong and some of its Executive team were discussing the feasibility of using UAE as a strategic hub for the exchange. According to the company, it was working closely with the regulators in the Abudhabi Global Marlet and DUbai’s Virtual Assets Regulatory Authority as part of efforts to expand into the region potentially.

 “The UAE is exciting for us as a potential hub to build as well, an international hub for Coinbase that could serve not only in the Middle East but parts of Africa or other countries in Asia,” said Armstrong at the Dubai Fintech Summit on May 8. “I think the U.S. right now is a little bit behind in regulatory clarity and some of the rhetoric from the top.”

UAE has become a leader in promoting crypto adoption, allowing VASPs like Binance to thrive and operate there. It does not have laws barring these exchanges from offering their services and does not have a ‘dirty’ history of charging organizations. 

As such, many Web 3 and crypto organizations are turning to the country to set up their premises to go international. Now Coinbase seeks to follow suit following its announcement on March 2 that it was launching the Coinbase International Exchange.

These efforts by the exchange follow when a battle with the US SEC is in the cards. The exchange’s CEO has repeatedly hit the regulator for not encouraging crypto technology in the country. He also shot at the SEC for using enforcement measures rather than harmonizing regulatory efforts.

The SEC has already issued a Wells Notice to the exchange showing intent to charge it for operating ‘against’ U.S. laws. Keep watching FinTech Express for updates on the story as it unfolds.