The world’s largest bitcoin exchange is in the process of seeking a licence to operate in Dubai.
Binance Holdings Ltd. is now in the process of obtaining a licence to operate in Dubai, therefore expanding its Middle Eastern business. Bloomberg was the first to publish this, citing a ‘source familiar with the subject.’
Binance is now awaiting certification to operate as a service provider in the Dubai World Trade Centre’s ‘free zone.’ This follows the EU’s clarification that cryptocurrency ‘falls within its sanctions on Russia and Belarus’.
Recently, the government enacted a new legislation governing the administration of a variety of virtual assets. Sheikh Mohammed bin Rashid Al Maktoum is seeking to establish the United Arab Emirates as the world’s foremost crypto centre.
“It is critical to have regulatory certainty. This new virtual asset regulation in Dubai is a significant step forward,” Binance CEO Changpeng Zhao remarked in a retweet of Sheik Mohammed’s addressing the city’s cryptocurrency future.
Binance and the Dubai World Trade Centre Authority (DWTCA) struck an agreement in December last year to develop and build the DWTCA as a worldwide centre for different virtual global assets.
This authority will regulate the issue and trade of virtual assets, and businesses offering crypto services must first get authorisation from the authority. Additionally, the new regulatory body would “watch transactions and prevent price manipulation of virtual assets.”
For many years, the UAE government has maintained a strong approach toward crypto assets. For instance, in 2018, the Dubai International Financial Center launched the “Court of Blockchain.”
“We applaud this significant milestone,” Binance’s head of MENA, Richard Teng, said in a statement. “We will continue to collaborate closely with the DWTC to assist build Dubai as a world-class and forward-thinking cryptocurrency regulatory environment.”
Although the firm was formed in China, it has not yet established a worldwide presence. Recently, Binance executives met with officials in the United Arab Emirates to discuss the possibility of establishing a headquarters there.
The UAE is the Middle East’s third-largest crypto market, after Turkey and Lebanon, with about US$26 billion in transaction volume from July 2020 to June 2021, according to Chainalysis statistics.
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