Binance will help DWTCA promote Dubai’s commitment to establishing a new international virtual asset ecosystem. Binance will assist crypto exchanges and businesses in becoming licensed in Dubai in cooperation with the local government.
The world’s largest cryptocurrency exchange by trade volume, Binance, became the first crypto exchange for joining a newly created crypto hub in Dubai. According to the press release, Binance signed a Memorandum of Understanding (MoU) with the Dubai World Trade Centre Authority (DWTCA) to establish an industry hub in Dubai. The statement read:
“With the MoU, Binance will help advance Dubai’s commitment to establishing a new international Virtual Asset ecosystem that will generate long-term economic growth through digital innovation.”
Economic growth with digital innovation
As part of the deal, Binance will help DWTCA outline its vision of “accelerating the set-up of a new industry hub for global virtual assets,” the company said in the announcement. Binance will also help promote the authority’s long-term economic growth with digital innovation. The firm added:
“Binance believes that Dubai’s new agenda will contribute to the growth of the global economy. The goal is to assist crypto exchanges, businesses that offer blockchain and distributed ledger technology services, and a wide range of digital currencies and assets to become licensed in Dubai.”
A boon for Binance
The signing of the MoU will be a boon for Binance, which has recently had a difficult time satisfying regulators around the world. Several global financial regulators increasingly scrutinized the exchange earlier this year. Financial watchdogs in Holland and Japan issued consumer warnings about the exchange this year. The Cayman Islands and Italy both announced Binance is not licensed to do business in their respective jurisdictions.
Access to new growth opportunities
The exchange also faced enforcement action in Malaysia after regulators said the exchange was operating illegally in the country. Meanwhile, in the United Kingdom, the Financial Conduct Authority (FCA) issued a consumer warning against Binance Markets Limited—Binance’s UK entity—in the summer. Later, the FCA said the firm was “incapable” of being regulated after failing to provide the regulator with basic information. Recently, Binance withdrew its application for a license in Singapore, where CEO Changpeng Zhao (CZ) lives. A spokesperson from DWTCA stated:
“The new Virtual Assets Hub in Dubai will connect service providers, technology enablers, and governments to co-create the next generation future economy ecosystem for the Virtual Assets industry. Our pioneering ‘test-adapt-scale’ model is designed to accelerate secure, equitable, and sustainable access to new growth opportunities, aiding Dubai’s vision for a fully digital and inclusive global society.”