Disclaimer: This article is updated to reflect that Virtuzone is not a business lender, and the new partnership between Binance Pay and the said company will not enable businesses repay loans in crypto.
Binance marked its presence among the Middle East investors by running various licensed operations in Abu Dhabi, Dubai and other regions. Targeting efforts in the United Arab Emirates' (UAE) mainstream corporate sector, Binance partnered with company formation specialist Virtuzone, allowing new entrepreneurs to set up businesses in the UAE using cryptocurrencies.
Virtuzone joins the list of mainstream businesses in the UAE, such as JA Resorts and Hotels and Majid Al Futtaim, to officially accept cryptocurrencies after integrating Binance Pay into its payment gateway. In addition, by providing businesses the option to use crypto, the company intends to reduce barriers to entrepreneurship and support the startup communities.
With blockchain venture capital funding going down over 43% in July, entrepreneurs are on the lookout for obtaining funds for new crypto ventures amid an ongoing bear market. In addition to serving this need, Virtuzone also revealed plans to expedite Web3 adoption in the Middle East. On this note, speaking to Cointelegraph, Richard Teng, head of Binance Middle East and North Africa (MENA), stated:
“The market that is developing in the UAE around the Web3 industry, thanks to a number of government initiatives, is one that will become a global hub for investors in digital assets.”
Binance also expects the MENA region to enjoy strong demographic growth in the next three decades. However, Teng believed that entering the untapped market requires the introduction of a regulatory framework for crypto and digital assets.
Related: Binance Aus ramping up measures to protect vulnerable users, says CEO
Binance CEO Changpeng ‘CZ’ Zhao’s intent to work with the regulators has been established as a well-known fact. In doing so, the exchange restricted the account of Tezos staking rewards auditor Baking Bad “as the result of a law enforcement request.”
“Binance is required to cooperate with such requests, the same as any other exchange. There is a process to contest the seizure with the agency should you wish to pursue that path. But that is done through the agency, Binance has zero control over that process,” explained the exchange while sufficing the move.