The evolution of the health crisis in several countries has led to many new measures being taken by the authorities. In some countries, containment is back on the menu of discussions. In others, this is certainly not the case, but the rules of the authorities are getting tougher to contain the spread of the new variant. In this context, what could be the regions to which cryptocurrency exchanges could direct their efforts in order to democratize the use of digital assets?
Binance and Ripple are going to conquer the MENA
The Middle East and North Africa (MENA) region is the first to be targeted by cryptocurrency exchanges. Binance (BNB) and Ripple (XRP) do not hesitate to focus their efforts there. Why ? Several reasons can be mentioned, but the most important is that this region has a regulatory environment more open to innovation in the field of fintech.
If the company Ripple is interested in the MENA region, it is also because of the value of its remittance networks which are widely diversified. It should not be forgotten that Binance has announced that it plans to establish a headquarters in Dubai in order to make the cryptocurrency market more accessible to locals and the region. It should be recalled that as part of this project, an agreement was concluded with the Dubai World Trade Center Authority to create a “industrial center“.
Binance and Ripple are among the giants in the cryptocurrency market due to the high number of customers they have. But it should also be emphasized that they face constraints and are exposed to legal risks in the United States. It is also perhaps because of these risks that they wish to explore new horizons.
Saudi Arabia, another fertile ground to discover
Saudi Arabia is another region that big cryptocurrency firms could explore. For good reason, according to a study report by Arab News, it displays a growth in its venture capital funding flow. Specifically, according to the document, 16 deals were concluded between January and August 2021, for a total of approximately $157.2 million – a more than 10x increase from the value recorded in 2020.
“The launch of the Open Bankingin Saudi Arabia in 2022, which allows companies to share consumer checking account data once permission has been granted, is also expected to accelerate the pace of Fintech development,”states the report.
It is possible that the new programs that will be launched in the region will be interpreted as signals by companies specializing in cryptocurrencies. They will be able to discover a new market there, while escaping the constraints of regulators.
The Middle East, North Africa and Saudi Arabia are regions that could be of interest to companies offering cryptocurrency services. The launch of new programs in these regions and the existence of an open environment to welcome initiatives in the field of decentralized finance (DeFi) are reasons to invest there.
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Behind the generic signature “TCT Writing” are young journalists and authors with specific profiles who wish to remain anonymous because they are involved in the ecosystem with certain obligations.