According to the “Cryptopolitan” website, more than half of these inquiries come from Europe, with a notable presence of companies and founders from Spain, Italy, and Germany. Two founders from Switzerland and Britain, who are outside the scope of the European “MiCA” regulation, have also begun communicating to explore options available in the Emirates. MiCA is putting pressure on crypto platforms.
The “MiCA” regulation aims to create a unified licensing framework for cryptocurrencies in the European Economic Area, a market that includes about 500 million people and includes European Union countries, in addition to Iceland, Liechtenstein, and Norway.
Cryptocurrency service providers were working during a transitional period to obtain the required licenses, but the July 1 deadline is approaching as a deadline that puts pressure on the sector.
The European CEO of OKX, Erald Goss, had previously said that 80 percent of crypto companies would not be able to withstand MiCA and would be forced to leave Europe.
The pressure is not limited to small companies in the sector, as major platforms are also feeling the burden of the new regulation. Binance, the world’s largest cryptocurrency trading platform by trading volume, withdrew its application for a MiCA license in Greece last week, and informed its users in the European Union that it would suspend some services while it pursues a license through another path.
“Our ambitions in Europe remain the same, and we are confident that we will obtain a MiCA license in the coming months,” the company said in a statement, according to what Cryptopolitan reported.
On the other hand, Binance’s competitors moved quickly to attract customers affected by this move. OKX and Coinbase, which have already obtained MiCA licenses, announced deposit bonuses of up to 8 percent for new users the day after Binance withdrew its application.
Why is Dubai attracting cryptocurrency companies?
Dubai is an attractive destination for crypto companies due to the presence of the Virtual Assets Regulatory Authority (VARA), a body specifically created to supervise cryptocurrencies and digital assets.
This differs from most European regulators that also supervise banks and traditional financial institutions, making VARA’s remit more focused on the virtual assets sector.
According to the report, this specialization is reflected in a greater speed in processing applications for new companies and their projects.
Obtaining a license in the UAE not only opens the door to operating from there, but also gives companies wider access to the Asian and North African markets, where they can reach nearly 4 billion potential customers.
Between the pressure of “MiCA” in Europe and the speed of specialized regulation in Dubai, the UAE appears to be more present on the map of companies looking for a less complicated and faster environment in dealing with the cryptocurrency sector.
