RIYADH: Binance, the largest crypto exchange by trading volume, is recruiting over 100 positions in the UAE and helping to shape Dubai’s new virtual asset regulations, its regional head has said.
The announcement comes after being cleared by Dubai’s new virtual assets regulator this month.
Binance’s ties with the Gulf state have deepened in recent months as the UAE tries to portray itself as the new global center for digital assets and develops regulations.
Bitcoin traded lower on April 1 at 1:42 p.m. KST, dropping 4.46% to $45,151, while Ether was down 4.08% to $3,275.
The $2.1 trillion crypto sector is still subject to uneven regulation across the globe.
US Sees High Risks in Crypto
U.S.-listed companies that hold cryptocurrencies on behalf of users and customers should recognize those assets as liabilities on their balance sheets and disclose the associated risks to investors, the securities regulator said Thursday.
The U.S. Securities and Exchange Commission’s SEC guidance would apply to a range of listed entities, including crypto exchanges and traditional businesses such as retail brokerages and banks that increasingly provide more cryptocurrency services and hold digital assets on behalf of an array of clients, according to Reuters. .
But there is still no explicit standard for the protection of crypto assets, and companies diverge in their treatment of these arrangements.
There are “significant” technological, legal and regulatory risks associated with safeguarding crypto-assets and, therefore, they should be reflected as a liability on company balance sheets, the SEC said in its guidance.
The technological mechanisms behind the issuance and transfer of crypto-assets create significant increased risks, including an increased risk of financial loss, according to the SEC.
Firms should also disclose “the nature and amount” of crypto assets they are responsible for holding, and the underlying crypto assets should be accounted for at fair value, the regulator said.
Hackers stole $615 million worth of cryptocurrency from the Ronin blockchain project this week.
US regulators remain undecided on how to deal with cryptocurrencies, with regulators still discussing new rules on how banks should handle digital assets.
A top U.S. banking regulator on Thursday urged banks to be more vigilant about protecting against unlikely but extreme risks as Russia’s invasion of Ukraine and soaring crypto trading have created a series of new financial threats.
Michael Hsu, the acting comptroller of the currency, said that depending on the outcome of the war in Ukraine, banks could face a number of “tail risks”, unlikely but extreme risk events .
Hsu also said he is concerned that banks may mistakenly believe that they have hedged the risk of certain crypto positions, when they have not.
Europe Sets More Regulations to Trace Crypto Transfers
EU lawmakers on Thursday backed new safeguards for tracing transfers of bitcoin and other cryptocurrencies, in the latest sign that regulators are tightening up on the freewheeling sector.
Two European Parliament committees jointly voted 93 in favor and 14 against on cross-party compromises that crypto exchange Coinbase Global Inc. said would usher in a surveillance regime that stifles innovation.
In Taiwan, a group of puppeteers are looking to use non-fungible tokens, or NFTs, to help bring their traditional art form into the modern era and keep it relevant for new audiences.