In the United Arab Emirates (UAE), which had positioned itself as a hub for cryptocurrencies over the course of the previous year, the collapse of FTX and 3AC has ignited a debate over regulation.
A crypto reporter by the name of Ben Bartenstein brought attention to the regional repercussions of both disasters. He began by stating that both FTX and 3AC have been granted first licenses by Dubai’s VARA. According to those acquainted with the subject, in recent weeks officials from the UAE have quietly raised concerns about the rate at which certain permissions are being granted.
According to court records in the bankruptcy case of the company, about 4% of FTX’s worldwide clients are headquartered in the UAE. Because of this, the UAE is one of the top 10 countries that will be touched by the consequences.
One of the last investor meetings that SBF had in the area was with Mubadala, which is based in Abu Dhabi. According to Bartenstein, the officials at the wealth fund felt justified for acting cautiously, and they aim to move cautiously with any investments connected to cryptocurrencies.
In addition, a number of cryptocurrency hedge funds that had just recently been established in the UAE had placed the whole of their clients’ assets on FTX, which caused a frenzied dash to get off the platform before withdrawals were blocked in order to prevent the funds’ own failure.
Binance’s portion of the total volume traded in cryptocurrencies around the globe has increased to over half, according to recent news. The CEO of Binance, Changpeng Zhao, popularly known as “CZ,” decided to make Dubai his home in 2021, which places the United Arab Emirates at the heart of this tale moving forward.