Top 3 reasons why Binance and Ripple might focus on Saudi Arabia in 2022

Contents show

The growth of the crypto community in the past few years has been outstanding. The reason is that several projects with exciting and promising fundamentals are being developed by the day. However, the old projects are such that they need to facilitate a series of infrastructural upgrades to compete on the same level as the new ones. If you’ve ever wondered how crypto managed to move from one country to another or across all continents, you should consider exchange platforms. One of the biggest crypto exchange platforms has been having partnerships with various crypto founders to move their projects from one country to another.

Recently, there has been news of the partnership between Ripple Labs and Binance focusing on Saudi Arabia. It is no news that Saudi Arabia, over time, has become one of the wealthiest countries in the world with several opportunities in all sectors. The country is such that is blessed with a great economy and balanced leadership. Hence, why has Binance and Ripple chosen Saudi Arabia? If you are wondering if this partnership would be fruitful, the first question should be, what prompted this idea? Is Saudi Arabia the right country to propagate the crypto community? Will ripple and Binance make a stance in the country? Below are some of the reasons why Binance and Ripple have chosen Saudi Arabia as their focus for crypto propagation in 2022.

An exit west escape

The Middle East is the safest escape from the strict regulation against crypto transactions in the west. However, the same is not the case in the Middle East, which has shown leniency on open regulation on FinTech innovations. So, both Binance and Ripple chose Saudi Arabia because it seems like the proper escape from ridiculous regulatory acts. Ripple has been looking forward to moving into the North Africa and the Middle East markets because of the value of its remittance networks, alongside its goal of deploying the on-demand liquidity in the Middle East. Ripple partnered with Pyypl and had its regional headquarters situated in Dubai. Binance, on the other hand, since December 2021, has been looking forward to relocating its headquarters to Dubai. It has also signed a memorandum with the Dubai World Trade Centre Authority to create an industry hub. The importance of this decision made by both companies is for investors to buy Ripple now that the price is still affordable. These innovations could be what XRP needs to break even and become bullish if the transition into Dubai becomes successful.

Saudi Arabia is a hub for the FinTech sector

As mentioned earlier, Saudi Arabia remains one of the most prosperous countries globally. Every sector in its economy seems to be the best you’d find in every country. The FinTech sector is one of the few sectors in the Arabian government that is doing excellently. Real estate is also one of those outstanding sectors every investor should consider when talking about Dubai. When it comes to entertainment, Saudi Arabia seems to be the best place to go on vacations as it has luxuries all lined up. All these being said, Saudi Arabia in 2021 has about 16 deals closed between January and August, totalling about $157.2 million in the FinTech sector. This value is more than ten times the value recorded the previous year. Saudi Arabia’s vision 2030 goal for its financial sector is to draw more digital stakeholders to the country; hence, this could also be one of the reasons for this big move from Binance and ripple labs. However, it is impossible to have such innovations coming into the crypto market without investors and financial institutions looking forward to investing. Most of these markets are wary of the United States securities and exchange commissions’ regulatory bodies; hence, they look for a more suitable one.

Escape from more regulations

Recall that the SEC has a lawsuit against Ripple Lab, and with the New Year, the lawsuit becomes scrutinized with new pairs of eyes. Ripple’s fair notice defence has been under severe distress as the American regulator recently used outcomes from a similar case to tackle Ripple Labs. Beginning from the coming week, there should be more updates regarding the SEC and Ripple Labs saga. So, if Ripple can finally grasp the situation and wins the case, finding means to leave the country for a better opportunity looks like the best option. So, If you are asking why Ripple is considering Saudi Arabia, it’s because of its fairness regarding crypto activity regulations.