As we come to the end of 2021, the focus on cryptocurrency and its implications, benefits and drawbacks are at an all-time high. Coinbase, a prominent cryptocurrency exchangebased in the United States, is looking to take advantage of this heightened focus by building relationships with key stakeholders in the UAE’s thriving blockchain and cryptocurrency sector.

At the center of Coinbase’s activities in the UAE is a Memorandum of Understanding (MOU) between Coinbase and prestigious state body the Dubai Financial Services Authority (DFSA). This MOU hasn’t yet been finalized or officially announced, but it is believed to cover various possible collaborations between the two parties. Possibilities include training events and seminars, as well as data sharing initiatives.

The MOU is seen as a way to bring Coinbase closer to key decision makers in the UAE and to strengthen the company’s presence in a region where crypto and blockchain technology has been gaining traction. It also allows Coinbase to position itself as a trusted partner in the UAE’s booming and growing digital economy.

The MOU between Coinbase and the DFSA also tacks on some additional benefits for Coinbase. For example, due to the UAE’s lack of cryptocurrency regulations, there is less legal uncertainty for Coinbase than if it were based in the US. This means that Coinbase can more easily expand its operations into the region without fear of regulatory pushback.

Moreover, with the US’s Securities and Exchange Commission (SEC) taking a hardline stance against crypto exchanges and other crypto businesses, Coinbase’s move to the UAE could provide some additional safety from US regulators.

Coinbase is also trying to expand its presence in the Middle East in general, with the company recently setting up a dedicated Middle East entity. This new venture has established offices in both the UAE and Israel and its main goal is to tap into the rapidly growing markets of the region.

Coinbase’s actions demonstrate that it is looking to capitalize on the current trend of cryptocurrency’s rise in the Middle East. The company is hoping to become a leader in the region by forging relationships with local regulators and actively working to expand its services. Coinbase is also looking for an advantage over its US-based rivals, by looking for an unregulated zone in which to do business. Only time will tell if this strategy proves successful but the company certainly seems to be putting a lot of effort into forging its presence in the region.



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