The US will likely introduce new legislation to support the wider use of cryptocurrencies in the world's biggest economy by late August, following meetings of regulators and government officials in Washington and New York last month, the chief executive of Binance said.
The “new optimism” that began with the Trump administration will lead to a series of changes this year in rules that govern the use of digital currencies, Richard Teng, who heads the world's largest cryptocurrency exchange by trade volume, said on Wednesday.
“I believe the US is going to come out with … pro industry and smart regulations that support the industry, but also manages the risk at the same time,” Mr Teng told The National at the global cryptocurrency conference Token2049 in Dubai.
“We applaud those efforts”, he said, adding that there is an evident change in attitude of the US' new leadership in 2025 towards digital currencies.
“We went from operation choke point 2.0 in the last four years to now, under the new Trump administration that's really embracing crypto.”
In April, the US Securities Exchange Commission (SEC) paused its civil lawsuit against Binance, which it had opened in June 2023 against its founder, Changpeng Zhao, more commonly known as CZ, for operating unregistered exchanges, misrepresenting trade controls and diverting customer funds.
This new direction was demonstrated last year, which Mr Teng described as momentous for cryptocurrencies. The SEC approved 11 spot Bitcoin exchange traded funds (ETFs) in January of last year, which allowed investors to gain direct exposure to Bitcoin through regulated financial instruments.
The positive shift of US policy toward cryptocurrencies is having a ripple effect globally and with leading institutions that previously shunned it, he said.
“So the Larry Finks of the world ran from a sceptic to a believer, launching iBit in terms of ETFs. Fidelity now launching their own stable coins. Standard Chartered working in blockchain,” he said.
“You see all the top institutions around the world embracing a crypto agenda they want to deploy”, he said adding that the proof is in the numbers.
Binance saw a significant growth in institutions that it boarded last year, which started with 170 million users and ended with 240 million.
“You're going to see a lot of demand coming out from family offices, high level individuals, trading firms, financial institutions trying to get active into the space.”
Richard Teng,
chief executive of Binance
“In the course of 15 months we added about 100 million users. So you can see the momentum is very real and very strong.”
Mr Teng said that since he took the Binance helm in late 2023, he has been working closely with governments to establish clear cut and effective cryptocurrency regulations.
Stablecoins
This co-operation includes the UAE, where Abu Dhabi entities IHC, ADQ and First Abu Dhabi Bank on Monday said they plan to launch a nationwide dirham-backed stablecoin that is regulated by the UAE Central Bank.
The move is set to revolutionise the ease of making payments and doing business in the Emirates.
“There are important use cases coming from stablecoin,” said Mr Teng when asked to comment on the UAE's initiative.
As for Binance's participation and connection with the new UAE stablecoin endeavour, he said, “it depends”.
“We can, by virtue of our size, globally, play a very important role in supporting any deployment and fast adoption in that space,” he said.
“We want to be very supportive of all the innovative efforts by government to really embrace blockchain crypto,” Mr Teng said, adding that in general, Binance works closely with governments around the world to help them formulate frameworks and regulations to support innovation, while managing risk.
“I sit on a few global councils on that front, advising governments. CZ has been appointed adviser by several governments,” he added.
Future of cryptocurrencies
Since US President Donald Trump began his second term this year, the cryptocurrency market has seen increased volatility.
Prices for Bitcoin reached an all-time high of about $109,225 on his inauguration day, and then retreated about 10.2 per cent and settled around $94,000 by late April, according to MarketWatch data.
Uncertainty around Mr Trump's trade policies, the launch of a namesake meme coin, and his executive order to create a strategic Bitcoin reserve from seized assets failed to encourage sentiment from investors who were looking for support with more aggressive policies, that all in all, contributed to its price downturn, according to MarketWatch.
Mr Teng said the volatility in the market is short term market reaction and investors need to look at the broader general trend beyond the price fluctuations and uncertainty.
“If you look at the best performing ETF last year, it's related to Bitcoin. So you can see huge adoption in this space,” he said.
“You're going to see a lot of demand coming out from family offices, high level individuals, trading firms, financial institutions trying to get active into the space.”
He said more products are being structured and developed.
“So the future momentum is extremely bright, but as with all asset classes, we are not immune to macroeconomic conditions,” he added.
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
BUNDESLIGA FIXTURES
Friday Hertha Berlin v Union Berlin (11.30pm)
Saturday Freiburg v Borussia Monchengladbach, Eintracht Frankfurt v Borussia Dortmund, Cologne v Wolfsburg, Arminia Bielefeld v Mainz (6.30pm) Bayern Munich v RB Leipzig (9.30pm)
Sunday Werder Bremen v Stuttgart (6.30pm), Schalke v Bayer Leverkusen (9pm)
Monday Hoffenheim v Augsburg (11.30pm)
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Greatest Royal Rumble results
John Cena pinned Triple H in a singles match
Cedric Alexander retained the WWE Cruiserweight title against Kalisto
Matt Hardy and Bray Wyatt win the Raw Tag Team titles against Cesaro and Sheamus
Jeff Hardy retained the United States title against Jinder Mahal
Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos
Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe
AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out
The Undertaker beats Rusev in a casket match
Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match
Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last
ESSENTIALS
The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Draw
Quarter-finals
Real Madrid (ESP) or Manchester City (ENG) v Juventus (ITA) or Lyon (FRA)
RB Leipzig (GER) v Atletico Madrid (ESP)
Barcelona (ESP) or Napoli (ITA) v Bayern Munich (GER) or Chelsea (ENG)
Atalanta (ITA) v Paris Saint-Germain (FRA)
Ties to be played August 12-15 in Lisbon
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
How to register as a donor
1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention
2) There are about 11,000 patients in the country in need of organ transplants
3) People must be over 21. Emiratis and residents can register.
4) The campaign uses the hashtag #donate_hope
