Dubai and other Middle Eastern countries are bracing for an influx of cryptocurrency firms as new rules drive companies out of the European Union (EU).
Crypto companies are reportedly heading for Dubai and the United Arab Emirates (U.A.E.) as the European Union’s Markets in Crypto-Assets regulation (MiCA) comes into force on July 1.
The new rules will force firms without authorization to stop serving clients across Europe.
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Reports say inquiries to relocate to Dubai and the U.A.E. from crypto firms have skyrocketed as companies grapple with the uncertainty of securing authorization in the European Union.
Crypto firms based in Spain, Italy, Germany, Switzerland and France are being forced to pull up stakes and leave Europe after failing to secure an operating license under the MiCA regime.
Binance, the world’s largest cryptocurrency exchange by trading volume, is the most high-profile example of a crypto firm that is being forced to halt its European operations.
Binance failed to secure a MiCA license from Greece. Consequently, the company has notified its European clients that it is suspending some services while seeking another regulatory route.
Companies need to secure a MiCA license from one European country that will allow it to operate throughout the European Union. But getting that license has proven difficult.
As a result, many crypto firms are retreating from Europe and looking to regroup in Middle East locations such as Dubai and the U.A.E.
Bitcoin (CRYPTO: $BTC) is currently trading at $58,400 U.S., near a two-year low.