Players in the cryptocurrency space are attracted to the United Arab Emirates (UAE) because the region not only has clear regulations but is likewise โopen to experimentation,โ Ben Caselin, the Vice President and Chief Strategy Officer (CSO) at the cryptocurrency exchange Maskex, has stated. Caselin likewise stated the UAE and the Middle Eastโs perceived neutrality โopens doorsโ that cryptocurrency exchanges operating in the Unitedย States or the Asia Pacific region cannot enjoy.
Factors Behind the MENAโs Emergence as a Preferred Investment Destination
The Maskex CSO likewise informed Bitcoin.com News that the Middle East and North Africa (MENA) regionโs emergence as one of the most sought-after financing destinations mayย be owingย to what he stated as the shift of relationships. Such shifts enable โnew hubs of power and innovation to emerge.โ
With respect to cryptoย stablecoins, Caselin stated these are โhugely importantโ now and will remain so for the foreseeable future. Nonetheless, in his written responses sent to Bitcoin.com News, Caselin admitsย that cryptoย stablecoins often rouse emotions, hence their issuance is best done in collaboration with โall the right stakeholders in a given region.โ In his responses, Caselin likewise shared his opinionsย on the ongoing artificial intelligence (AI) hype and Unitedย States regulatory woes.
Below are Caselinโs answers to questions sent to him via Telegram.
Bitcoin.com News (BCN): The UAE appearsย to be at the forefront of cryptocurrency regulatory innovation, with the Virtual Assets Regulatory Authority (VARA) supplying investors, developers, and corporations with clear regulations. In addition to regulatory clarity, what do think makes the UAE an attractive destination for talent and capital?
Ben Caselin (BC): Across the emirates that make up the UAE, there are opportunities. Althoughย while a city such as Dubai is well-developed, itโs clear that thereย is still so much more room to grow and that comes with a certain excitement. From infrastructure and architecture to business and digitalization, the UAE is eager to innovate and open to experimentation. This is appealingย to anyone with ambition and an entrepreneurial spirit.
BCN: Your company, Maskex, counts Sheikh Hamad bin Rakadh Al-Ameri, who is associated with a trending sovereign wealth fund in Abu Dhabi, as its major shareholder. What do you think their reasoning is behind the strong faith in Maskex and crypto?
BC: Althoughย while some foreign exchanges much larger than ours have publicly expressed interest in obtaining a license and engaging in this region, Maskex is 1st and foremost a Dubai-based exchange and we are proud to be deeply associated with Abu Dhabi and the UAE as we serve the wider region. Additionally, established only in 2021, Maskex still has manyย of room to grow which is appealingย to any investor. Furthermore, itโs criticalย to note that Maskex is not just a cryptocurrency exchange. Alongย with the usual cryptocurrency products such as spot, perpetuals, margin, alternatives, copy trading, staking and p2p, we likewise offer markets for both Unitedย States and Hong Kong stocks and a wide range of real-world payment, OTC and banking capabilities to both retail and institutional clients. Simply put, Maskex isย very unique in its offering.
BCN: The UAE is sometimes seen as the neutral ground betwixt the West and the Asia Pacific (APAC) region. What, if any, advantages do the UAE-based exchanges have over their Western or APAC peers when serving worldwide customers?
BC: The UAE is highly respected across the region and beyond; from Saudi Arabia, Kuwait, Bahrain and Egypt, from Turkey to Uzbekistan, all the way to Indonesia, and so operating an exchange from the UAE with the right network of support behind it can open up manyย of doors that both Unitedย States and APAC-based exchanges would find hard to unlock. This is a good thing. I believe the industry is best served by regional consolidation, rather than worldwide monopolization.
So if we can see high-quality exchanges independently emerge and consolidate across South America, North America, Europe, Sub-Saharan Africa, the Middle East and North Africa, likewise as Central and South East Asia, the Far East, and the Pacific, then thatโs probably better if we ever want to see the adoption of Bitcoinย (BTC) and digital assets by the entire worldwide population. And by adoption, I doย not just mean that people are able toย win exposure to worldwide markets and take part in worldwide finance and make their own free choices as to what currencies they would like to use in their day-to-day life, but I do likewise mean the adoption of a culture of self-custody and peer-to-peer payments. Regional consolidation marks theย following phase of growth in the evolution of this industry.
BCN: As a regulatory-compliant centralized exchange, Maskex reportedly intendsย to provide the generalย public with financial anonymity and autonomy. How do you strike a balance betwixt regulatory compliance and user anonymity, especially when the VARA states in the section โProhibited Virtual Assetsโ that the issuing of privacy coins is prohibited in the emirate?
BC: Maskex will always must strike a balance and may adopt different strategies per jurisdiction. Privacy can be placed on a spectrum and does not just refer to privacy coins. It may likewise refer to private banking, theย potential for users to generate new addresses, or seamless on and off-ramps betwixt fiat and cryptocurrency including the Maskex virtual card which allows users to pay for goods and services with USDT as their collateral.
BCN: Do you see cryptoย stablecoins having a role in futureย ofย the cryptocurrency and Maskex planning to launch fiat-pegged cryptoย stablecoins in the near future?
BC: Cryptoย Stablecoins remain hugely important and will no doubt remain so for the time being. Across the region, demand for USDT is soaring, so much so that demand can hardly be met. Alongย with USD-pegged cryptoย stablecoins, we can likewise expect to see more innovation around gold-pegged cryptoย stablecoins, especially in theย present macro environment.
Gold is a trusted store of value in this region, both culturally and historically, and itโs really only a matter of time before we will see the market for gold-backed cryptoย stablecoins explode. We cannot disclose anything about any cryptoย token that we canย potentially or canย potentially not issue, but itโs good to note that cryptoย stablecoins are highly political in nature and are best announced in collaboration with all the right stakeholders in a given region.
BCN: Reportsย by a report by Chainalysis, the Middle East and North Africa (MENA) region is the worldโs fastest- growing cryptocurrency adopter. In your opinion, what do you think are some of the factors driving cryptocurrency adoption in the region?
BC: Theย expansion in the MENA region cannot be attributed to one single factor alone. Inย theย previous decade a lot has changed, both in the region itself likewise universally. From a high-level point of view, we could say that in theย present macro-environment and the increasingly multi-polar world, all relationships are shifting allowing for new hubs of power and innovation to emerge. Itโs time for the MENA region to come into the limelight now, not just on the cryptocurrency front, but traditionally across culture, art, business and technology. Having stated that, I see enormous opportunities in Sub-Saharan Africa likewise, likewise as South America. Perhaps this decade belongs to emerging markets worldwide โ and thatโs a good thing as emerging markets already house over 85 percent of the worldโs population.
BCN: Amid theย pastย few artificial intelligence (AI) hype, a bunch of Artificialย Intelligenceย (AI) cryptoย tokens have been grabbing the attention of traders. Aย lotย of them probably doย not have any real utility. Reportsย by you, does Artificialย Intelligenceย (AI) have a role in the Webย 3.0 space?
BC: Artificialย Intelligenceย (AI) is interesting but on the Webย 3.0 front it doesnโt interest me at all. People appearย to forget that Webย 3.0 is just a buzzword rooted in the original intention to completely overhaul the worldโs financial system and move towards a fairer form of money. Itโs much less about gaming or meeting in virtual cybercafes and interacting with AI-powered NPCs. Iโm focused very much on the empowerment of people in the physicalย world. Having stated that, Artificialย Intelligenceย (AI) is highly interesting for itsย probability to optimize education, health care, business operations, logistics, creative work and more โ but putting Artificialย Intelligenceย (AI) and Webย 3.0 together is another recipe for aimless hype.
BCN: The European Union has approved its cross-jurisdictional cryptocurrency regulation framework Markets in Cryptocurrency Assets regulation (MiCA) for release in 2024. Do you believe this path or that set by the likes of the UAE will prompt the Unitedย States to accelerates the rollout of their own cryptocurrency regulations?
BC: No. Unfortunately, the Unitedย States asย ofย now suffers from asย well numerous internal conflicts to even begin to provide any clarity at all. Itโs good to see different countries aroundย theย globe take charge of their own future, and soonerย orย thereafter, when the Unitedย States as a whole does come around, itย mayย be on fairer terms for all.
