Binance Holdings Ltd. is currently in deliberation on a license to operate in Dubai, thus strengthening its presence in the Middle East.
This was first reported by Bloomberg, citing a “person familiar with the matter”.
- Binance is planning accreditation to operate as a service provider in the Dubai World Trade Center “free zone” as soon as possible. This comes after the EU clarified that the crypto “falls under the sanctions it imposed on Russia and Belarus.”
- The country recently passed a new law regarding the governance of various virtual assets.
- Sheikh Mohammed bin Rashid Al Maktoum is trying to propel the Arab state as a global crypto hub.
“Regulatory clarity is so important. This new law on virtual assets in Dubai is a big step forward,” Changpeng Zhao, CEO of Binance said in a retweet of Sheikh Mohammed talks about the city’s future to Crypto.
- In December last year, Binance signed an agreement with the Dubai World Trade Center Authority (DWTCA) to develop and establish it as a global hub for various global virtual assets.
- This authority will oversee the issuance and trading of virtual assets and companies providing crypto services will first need to obtain its approval.
- Additionally, the new regulatory entity “will also monitor transactions and prevent price manipulation of virtual assets.”
- The UAE state has taken a proactive stance on crypto assets for a few years. For example, the Dubai International Financial Center created the “Court of Blockchain” in 2018.
“We welcome this important development,“Richard Teng, Head of MENA Region for Binance, said in a statement.We continue to work closely with the DWTC to help make Dubai a progressive and world-class crypto regulatory environment.”
- The company was founded in China but has yet to establish a global base. In recent months, Binance executives have held talks with UAE regulators about a potential headquarters in the country.
- The United Arab Emirates is the third largest crypto market in the Middle East, behind Turkey and Lebanon, with a trading volume of around $26 billion, according to data from Chainalysis, compiled from July 2020 to June 2021.
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