The Dubai World Trade Center will become a complete ecosystem for cryptocurrencies and related service providers. The move is part of efforts to support new industries and the emirate intends to rely on crypto companies like Binance.
Dubai World Trade Center to host and regulate the crypto space
UAE authorities plan to establish a special zone at the Dubai World Trade Center (DWTC) from which companies dealing with digital assets can offer their products and services. The Dubai government has announced that the DWTC will also play the role of an industry regulator, enforcing “rigorous standards for investor protection, anti-money laundering (AML), anti-money laundering (AML)). terrorism (CFT) compliance and cross-border agreement flows. trace.”
According to an official announcement, the aim is to further develop Dubai’s virtual asset space and market by introducing a regulatory framework for innovative financial products that includes legislative and enforcement policies. Officials hope this will facilitate the adoption of new blockchain-related trends and improve Dubai’s position as a global business center.
Binance plans to head office in UAE
Authorities in Dubai also stressed that the DWTC will work with the private sector and other relevant entities to create an attractive environment for the crypto industry. One such collaboration has already been concluded with Binance, the world’s largest digital asset exchange by volume, the Straits Times reported. Dubai wants to license such crypto trading platforms and other blockchain companies.
Under a memorandum of understanding signed with the governing authority of the Dubai World Trade Center, Binance will share its experience with regulators from other jurisdictions with the administration, the company said on Tuesday. A Bloomberg report revealed that the exchange is negotiating with Dubai and Abu Dhabi to set up its headquarters in the United Arab Emirates.
According to the Straits Times, Binance Founder and CEO Changpeng Zhao recently bought a house in Dubai and met with key representatives of the local crypto industry while praising the emirate’s pro-crypto position on social media. . The executive said in a statement on Tuesday:
Today, the adoption of crypto and blockchain technology is only in its infancy, but through our leadership position and expertise, combined with Dubai’s long-term vision, we plan to develop a framework appropriate regulatory to adapt to the rapidly changing and incremental nature of virtual assets.
The report notes that energy-rich Dubai has attempted to stimulate non-oil growth in order to ensure the sustainability of its economy. The plan to transform the Dubai World Trade Center into a restricted area for cryptocurrency operations is part of those efforts.
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