In a recent interview, during World Blockchain Summit in Dubai, Alex Chehade, executive director and general manager of Binance, shared insights about the company’s journey, its role in the cryptocurrency market, and the significance of regulation in the crypto landscape.
Binance, which operates as a VARA regulated exchange, has quickly made its mark in the cryptocurrency world. Established just over six years ago, Binance is celebrated for being one of the pioneering crypto exchanges, quickly becoming the most successful in the second wave of crypto exchanges.
With permissions for exchange and brokerage for qualified retail and institutional investors, Binance is poised to expand its offerings even further. By the end of the year, they hope to obtain an FFP (Financial Facility Provider) licence, making their platform accessible to retail users as well.
The company has played a pivotal role in shaping the crypto market, accounting for approximately 50 per cent of swap transactions. This significant market presence has made them a household name for crypto enthusiasts and investors alike. Binance’s ambition, however, goes beyond dominating the crypto space. It aims to become a regulated entity in multiple markets, with the United Arab Emirates, specifically Dubai, being a key focus.
Importance of regulation
One of the central themes in Chehade’s interview is the importance of regulation in the crypto world. He emphasised that institutions require regulatory governance to facilitate their participation in the crypto market.
While some sophisticated hedge funds and proprietary trading firms have entered the crypto arena, mainstream adoption is contingent on regulatory assurance. Financial institutions, with their compliance and risk teams, need a level of governance and transparency that aligns with their expectations.
Regulatory compliance and audits of the system are paramount in establishing trust, and Dubai’s progressive regulatory environment is poised to facilitate this shift.
Dubai, according to Chehade, is on the cusp of becoming a major trading hub. The city’s regulations are poised to attract institutions, making it a favourable jurisdiction for the establishment of crypto-related businesses. Furthermore, Dubai is positioning itself as an infrastructure hub, a web three hub, and a strategic time zone bridging Asia, Europe, and Africa. These factors are all contributing to Dubai’s emergence as a central player in the crypto landscape.
The conversation shifted to the current saturation of crypto and blockchain events. With a proliferation of events happening daily, it can be challenging to discern which are truly valuable. He acknowledges this saturation but notes that the established players are continuously improving to remain competitive. Events with a legacy and a track record of improvement stand out from the crowd. As the crypto space matures, it’s expected that events will become more refined and targeted, catering to the evolving needs of the industry.
Regarding Binance’s expansion, Chehade reveals that the company is already operating in the Middle East with licences in Abu Dhabi, Dubai, and Bahrain. It considers these licences sufficient for the region, with the capability to serve other countries effectively. Binance’s global strategy revolves around establishing a presence in key jurisdictions that can cater to multiple markets, emphasising efficiency and scalability in their approach.
In conclusion, Binance, with fast growth and strong presence in the crypto market, is a testament to the rapid evolution of the cryptocurrency landscape. The company’s commitment to regulatory compliance and its strategic focus on Dubai reflect its ambition to lead the way in bridging the gap between the traditional financial industry and the crypto world.