Dubai’s Crypto Ecosystem Gets a Boost From Hong Kong-listed Huobi
Last Updated on November 13, 2023 by Ameer HamzaThe Huobi crypto exchange has expanded its reach internationally by securing licenses in Dubai. As a result of receiving its approval from VARA, Huobi Investment, its subsidiary in the United Arab Emirates, will be authorized to provide virtual asset services to its customers. Huobi Group received its first license from DIFC, which is not a commercial activity or trading license but instead gives Huobi the authority to encourage tech entrepreneurs to establish operations in Dubai. Chainalysis reports that 7% of worldwide cryptocurrency trade volume originates from the Middle East, making it one of the world’s most rapidly expanding cryptocurrency markets. Annual cryptocurrency transactions in the UAE are estimated at $25 billion. Seeing massive growth and rising adoption of virtual assets in this region, more and more crypto exchange companies want to establish their headquarters. Similarly, the DIFC license to Huobi offers access to several opportunities, including participation in the regional IT industry and unique benefits for technological R&D, investment, and taxation.
An Expansion Of Huobi’s Workforce In Dubai Is Already PlannedHuobi, initially established in China, intends to have its operational headquarters in Dubai, where cryptocurrencies and other digital assets have recently gained popularity. The Dubai Government’s commitment to establishing the emirate as a worldwide powerhouse for digital assets and the emerging virtual economy makes Huobi more optimistic about its operations in Dubai. The platform collaborates with VARA and Dubai’s major governing bodies to increase investment and advance the city’s digital asset sector. Over time, the platform intends to increase the size of its local employees in Dubai gradually.
Numerous Crypto Exchanges Are Licensed To Operate LegallySince Dubai passed the first legislation in the emirate regulating virtual assets in March, the city has been home to many cryptocurrency exchanges. The only custodial authority tasked with regulating and issuing licenses to the cryptocurrency industry in the emirate is Dubai’s VARA. Several cryptocurrency exchanges have been granted permission to operate in Dubai recently. Some examples of such platforms include CoinMena, Binance, BitOasis, Bybit, and FTX Europe. It’s no secret that the cryptocurrency sector in the Middle East is booming at an unprecedented rate. Between July 2020 and June 2021, the cryptocurrency value received in the Middle East was $271.7 billion.
Increasing The Region’s Resilience And Liquidity With CryptoIn addition to bolstering crypto stability and liquidity in the area, Huobi’s Dubai operations will provide its customers unparalleled access to the exchange’s cryptocurrency trading services. Huobi will cater to institutional investors by providing over-the-counter (OTC) and spot trading services to a small subset of Dubai-based accredited investors and licensed financial intermediaries. Additionally, over the next several months, it intends to broaden its customer base to include retail investors from Dubai.