Trust Wallet, the Crypto App Owned by CZ, Seeks Opportunities in the UAE
Binance’s Subsidiary Sees Growth in UAE Amid Regulatory Pressure on Crypto Exchange
Binance Holdings Ltd., the leading cryptocurrency exchange, has been at the center of a storm as the US government demanded fines of $4.3 billion and accused its founder, Changpeng “CZ” Zhao, of various crimes. However, beyond the embattled exchange business, one of CZ’s subsidiaries has been witnessing growth in countries like India, and Pakistan, as well as pursuing business opportunities in the United Arab Emirates (UAE).
Trust Wallet, a software-based crypto wallet service acquired by CZ in 2018 and operated by a company majority owned by him, is seeing significant growth in South Asian markets. Eowyn Chen, the current CEO, has highlighted the growth potential in Asian countries such as Vietnam, the Philippines, Indonesia, as well as in the UAE.
## Regulatory Challenges and Global Growth for Trust Wallet
### Mounting Regulatory Challenges for Binance
Binance has been facing significant regulatory challenges globally with Australia canceling its license for a derivatives operation and Singapore ordering the firm to stop its business there. Even Dubai, where CZ primarily resides, has yet to grant the exchange full authorization. Moreover, the United States’ demand for fines has led to CZ stepping down as CEO of Binance and relinquishing his role as chairman of Binance’s US exchange.
### Growth and Expansion in South Asian and Middle Eastern Markets
Despite the regulatory uncertainties, Trust Wallet is experiencing growth, with 56 million downloads on iOS and Android, making it the most popular crypto wallet for handheld devices globally. Analysts have pointed out that the app-based service has seen 8.5 million downloads in India and 3.5 million in Pakistan. Recognizing the growth potential in Asia, the company is shifting its operations to the UAE.
## Moving Operations to the United Arab Emirates
Chen has personally moved to Dubai from Virginia, and the company will now be based in Ras Al Khaimah. The CEO has highlighted the friendlier outlook toward crypto in the UAE and the confidence in reasonable regulation on decentralized finance. She has also pointed out the advantages of setting up operations in the UAE, citing a friendlier corporate treatment for web3 companies there.
## CZ’s Role and Trust Wallet’s Future Plans
Trust Wallet, while not yet profitable, has CZ playing a significant role as the majority owner, providing operational strategic advice. The platform’s native token TWT has seen a 50% jump in value after CZ promoted the app. Trust Wallet is also seeing competition from a similar crypto wallet launched by Binance. With the regulatory challenges and leadership changes at Binance, it remains to be seen how Trust Wallet will chart its expansion plans.
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