UAE looks to attract Asian firms to bolster crypto sector

The United Arab Emirates is in talks with Asian firms who want to relocate to the Gulf nation, as part of efforts to transform itself into a hub for cryptocurrencies.

“We’ve seen multinational firms right now waiting to relocate out of east Asia,” Ahmad Belhoul Al Falasi, minister of state for entrepreneurship and SMEs, said in an interview with Bloomberg TV. The government is in talks with “several” firms eyeing a base in the UAE given tougher regulations elsewhere and given the country’s resilience through the pandemic, he said.

Binance Holdings has held discussions with regulators in the UAE about a potential headquarters in the Gulf nation, Bloomberg reported last week. “Stay tuned,” Al Falasi said, when asked about Binance’s plans.

Read: Binance planning to tie up with Dubai for crypto activities – report

The UAE has intensified its push to bolster the use of blockchain in recent years. Dubai, a financial centre with a vibrant nightlife and tourism scene, is vying with Singapore, Switzerland and other regions to become a global crypto hub. On Monday, the government said the Dubai World Trade Centre will become a comprehensive zone and regulator for virtual assets and cryptocurrencies.

Read: Dubai World Trade Centre to become regulator for virtual assets and crypto

“Cryptocurrency is here to stay, we’ve seen an increase in uptake,” Al Falasi said. “As long as you are following right regulation, there is no harm in adopting such technology or putting the regulation in place.”