Binance, the largest cryptocurrency exchange in the world, has reached a collaboration agreement with Dubai World Trade Centre Authority, a free financial zone in the emirate. The DWTCA wants to set up an international virtual asset ecosystem, Reuters reported.
Dubai authority to become cryptocurrency regulator and zone
On Monday, the authority announced intentions to become a zone and regulator for cryptocurrencies and other virtual assets. The UAE is making efforts to create new business opportunities against the backdrop of severe regional competition.
What’s more, Dubai World Trade Center Authority plans to create new economic sectors through a specialised zone for virtual assets, including digital exchanges, operators, and products. According to an official statement:
Rigorous standards for investor protection, anti-money laundering, combating the financing of terrorism, compliance and cross border deal flow tracing will be developed.
Binance also issued a statement on the partnership. The exchange announced plans to help develop and integrate digital asset regulations in Dubai, adding:
The goal is to help crypto exchanges, or businesses that offer blockchain and DLT services, or a wide range of digital currencies and assets to become licensed in Dubai.
Binance trying to make nice with financial regulators all over the world
Regulators all over the world cracked down on Binance this year. Almost a dozen moved to sanction its operations, in countries such as the US, UK, Germany, South Africa, Singapore, and more.
Some national watchdogs banned the exchange from carrying out certain activities. Others took a softer approach, simply warning community members that the exchange was not licensed to operate in their jurisdictions.
CEO of Binance Changpeng Zhao responded by pointing out it was his wish to improve his exchange’s relations with regulators. He commented the partnership with Dubai as follows:
Through our leadership position and expertise, combined with the long-term vision of Dubai, we plan to develop a regulatory framework appropriate to fit the fast-moving and progressive nature of virtual assets.
More and more Dubai free zones getting into crypto
In October the DIFC, another financial free zone, issued regulations on digital tokens. The DIFC is Dubai’s state financial free zone and a major financial hub in the region.
In September, the DWTCA had agreed on a framework, based on which they would be able to endorse and issue licenses to conduct crypto trading-related activities.
