Binance Pay surpasses 21M merchants worldwide

Binance has expanded the reach of its payment service to more than 21 million merchants globally, according to comments made by Co-Chief Executive Officer (Co-CEO) Richard Teng.

The scale of merchant adoption suggests that crypto payments are moving beyond their origins as speculative instruments and gaining traction as a functional alternative to traditional payment systems.

As reported by Cryptonews.net, industry observers note that growth has been supported by practical advantages for businesses, including lower transaction costs, faster settlement times, and reduced exposure to chargeback fraud. These factors have made crypto-based payment systems more attractive, particularly for cross-border transactions.

Infrastructure expansion supports payment use cases

The establishment of specialised payment infrastructure has played a key role in this expansion. Platforms like Binance Pay, along with rival services, have launched features such as mobile apps, integration for merchants, and payment systems using QR codes.

The emergence of stablecoins, which are tied to traditional currencies, has contributed to alleviating volatility issues that once restricted the use of cryptocurrency in everyday transactions. This has facilitated more reliable pricing and enhanced acceptance by both merchants and consumers.

Binance receives licences in Abu Dhabi

Last year, Abu Dhabi’s Financial Services Regulatory Authority (FSRA) granted three licences to Binance. The approvals cover the company’s regulated exchange, clearing infrastructure, and broker‑dealer operations.

In March last year, Binance received a $2 billion investment from MGX, an AI‑focused investment firm chaired by Sheikh Tahnoon bin Zayed Al Nahyan. Sheikh Tahnoon’s involvement reflects Abu Dhabi’s interest in expanding its position in digital assets.

Binance’s global expansion

Following earlier controversies, Binance has redirected its efforts toward stronger transparency and regulatory alignment. Co‑CEO Richard Teng indicated that the UAE could potentially serve as Binance’s global headquarters, highlighting the country’s proactive regulatory approach to digital assets.

Founder Changpeng Zhao (CZ) stepped down following legal challenges in the US, where Binance agreed to pay $4.3 billion to settle investigations. Under Richard Teng, Binance is working to rebuild its image as a compliant and transparent exchange.

Crypto transactions VAT free in UAE

In 2024, UAE exempted all crypto transactions from having to pay value-added tax (VAT), a significant step to support the market. All crypto transfers and conversions from 15 November 2024 as well as the past till 2018, made by both individuals or businesses, are now exempt from the previously imposed 5 percent VAT.

UAE now fosters a more supportive environment for digital assets, and is positioning itself as a global hub for crypto innovation and investment. It also underscores the broader trend of crypto adoption across the Middle East. The UAE and other Gulf nations have been investing in blockchain infrastructure, regulatory frameworks, and strategic partnerships that promote the crypto industry.

The UAE has also surpassed traditional favourites like Germany and Hong Kong as preferred designation for tech professionals’ willingness to relocate. A 2024 recent survey by Capital.com reveals that 81 percent of Asian tech experts see UAE as an increasingly important tech destination. The survey, conducted across countries like Singapore, Hong Kong, Vietnam and India, found that the Middle Eastern country has substantially improved as a preferred destination for tech talent.