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This area could be a haven for Binance and Ripple in 2022

This area could be a haven for Binance and Ripple in 2022.

Many of us may be stuck at home due to the Covid-19 pandemic, but 2022 could be the year when blockchain companies and crypto exchanges are looking for new countries to explore.

Crypto Firms Leaving the West?

Both Binance and Ripple are showing interest in the Middle East – North Africa (MENA) region, where the regulatory environment is more open to fintech innovation.

Ripple has an eye on the MENA markets thanks to the value of the remittance network. The partnership with Pyypl to introduce ODL (On-Demand Liquidity) in the Middle East and the regional headquarters in Dubai are prime examples.

Meanwhile, Binance is reportedly planning to have its headquarters in Dubai after signing a Memorandum of Understanding (MoU) with the Dubai World Trade Center Authority (DWTCA) to create an “industrial center” in late December.

So, are Binance and Ripple – both exposed to regulatory risk in the US – on the way for future expansion in the Middle East? If so, which country will you choose?

From the United States to Arabia

one report A new assessment by Arab News has identified the growing influx of venture capital into Saudi Arabia’s fintech sector. Between January and August 2021, 16 transactions with a total volume of around 157.2 million US dollars were made – a ten-fold increase compared to 2020.

“The launch of Open Banking in Saudi Arabia in 2022, which will allow companies to exchange consumer checking account information after licensing, is expected to accelerate the development of fintechs.”

New programs like this one can signal crypto companies looking to enter a new market, but be careful with regulators like the US Securities and Exchange Commission.

Saudi Arabia’s Vision 2030 and the Financial Sector Development Agenda are two initiatives that are also expected to attract digital actors to the region.

Legal pressure

In the USA, the SEC lawsuit against Ripple Labs goes into a new year. The regulator recently used results from another case to further support its pending proposal to abolish Ripple’s Fair Notice Protection, which is expected to receive further updates after Jan. 19.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.