Cryptocurrency exchange Coinbase is turning to the United Arab Emirates (UAE) to strengthen its relationship with regulatory authorities and expand its global footprint. Coinbase’s CEO and co-founder Brian Armstrong and the executive team are in the UAE for meetings with policymakers, regulators, and clients, as well as to participate in the inaugural Dubai Fintech Summit.
In a blog post, the crypto exchange praised the UAE’s proactive and progressive regulatory approach to cryptocurrencies, with Armstrong stating that the region “deserves a lot of credit for being forward-thinking on crypto.” Coinbase aims to capitalize on the UAE’s position as a strategic bridge between Asia and Europe to amplify its efforts worldwide.
The move comes as Coinbase faces regulatory challenges in the United States. In March, the Securities and Exchange Commission (SEC) sent the exchange a Wells notice for possible violations of securities laws.
Coinbase sued the SEC in April to force the agency to publish specific rules for digital assets, and the regulator was ordered by a US court last week to respond to Coinbase’s complaint within 10 days.
Coinbase is also expanding internationally. It recently launched an international derivatives exchange in Bermuda, allowing users to trade perpetual futures with 5x leverage. The exchange said it was working with Abu Dhabi Global Market regulators to expand the availability of its international exchange, and engaging with Dubai’s Virtual Assets Regulatory Authority to establish a retail framework.
The UAE has seen significant growth in its crypto ecosystem, attracting attention from giants such as Binance.
Despite regulatory uncertainty in the US, Armstrong reiterated that Coinbase is “100% committed” to the country over the long term. “That’s really important, and I’m actually really optimistic on the US getting this right,” he said during the company’s earnings call last week.
