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Crypto Exchange BTSE Exits Dubai due to Regulatory Frameworks Delays

Feb 5, 2020 | Cryptocurrency

Cryptocurrency exchanges are always looking to take the next step in their journey. That is often easier said than done, depending on what companies aim to achieve.

In the case of BTSE, the move to the British Virgin Islands is interesting. It appears that some regulatory uncertainty in Dubai is forcing the company’s hand in this matter.

BTSE in Dubai 

For those who are unaware, BTSE has been around since March of 2018. Its founders started building the project from that point forward. The objective has always been to provide a suite of financial services revolving around Bitcoin and other digital assets. 

At the time of launch, Dubai seemed to be the best region to explore. A regulatory framework for cryptocurrency exchanges has been in the works for a long time. BTSE obtain a Commercial Brokers and Payment Services Provider license to ensure they could launch their operation in the meantime.

Despite finalizing the necessary paperwork, the expected regulatory measures are still not in place today. More specifically, the delays have caused a lot of unrest for all companies active in the region. Any provider that is preparing to enter new markets and launch new products cannot be satisfied by this lack of progress. 

The Move to the BVI

Rather than await the development of Dubai’s regulatory framework, BTSE takes matters into its own hands. The company is moving to the British Virgin Islands. A dedicated branch was set up in the region in October of 2019. 

Given the company’s development of products and services, the BVI make a lot more sense. It has a very clear regulatory ecosystem that fosters growth for both  cryptocurrency and blockchain service providers. This level of clarity is needed for companies trying to increase their overall market position. 

It is possible that the company will keep using certain Dubai entities. However, those will primarily be relied upon for non-crypto exchange purposes. 

Images courtesy of their respective sources.

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<a href="https://fintoism.com/author/oglock/" target="_self">JP Buntinx</a>

JP Buntinx

JP Buntinx is passionate about cryptocurrencies, fintech, blockchain, and finance. He currently resides in Belgium.

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