According to a blog post from Binance, the largest crypto exchange in the world based in trading volume has put pen to paper for a Memorandum of Understanding with the DWTCA. The company believes this will enhance the commitment of Dubai in setting up an ecosystem for International Virtual Asset.
Binance is hoping to use its scrutiny experience with other regulators across the globe in its collaboration with the DWTCA. This collaboration will help them develop a new regulatory regime for the country and also assist them in setting up a framework for licensing crypto exchanges and businesses offering Distributed Ledger Technology (DLT) and blockchain services.
The CEO of Binance, CZ Zhao, said his statement that the company is looking to employ its expertise and leadership position in the industry, including Dubai’s long-term vision to develop a concrete regulatory framework that aligns with the fast-growing nature of cryptocurrencies.
Dubai Crypto Zone
At the beginning of the week, the Dubai Office for Media declare the Dubai World Trade Centre as a Crypto Zone and will also be the regulator for crypto and other digital assets. In trying to keep up with the intense competition in the region, the DWTCA is trying to set up an ecosystem that attracts new businesses.
Being a free zone in the United Arab Emirates, the DWTCA will now be the regulator after agreeing to the framework that allows it to approve and issue licenses for financial activities relating to cryptocurrencies in September. Another freezone there is the Dubai International Financial Centre which established a regulatory framework for crypto in October.
The Presence of Binance in the United Arab Emirates
Moving to the UAE has generated speculations around the fact that Binance is looking to set up its headquarters in the region. Just last week, the executives of Binance had a meeting with the officials from the economic zones in UAE on its prospective move.
The CEO of Binance revealed last month that Binance has decided the location for its headquarters but will not be revealing it to the public until all arrangements have been made with the regulators in the country.
However, there are some indicators that Binance has selected UAE as its headquarters. One of them is the onboarding of former top officials in the economic zones and another one is the huge raise showered on the country for its favorable disposition to the crypto space alongside Singapore and France. The last of it then can look minute but worthy of considering it that CZ Zhao bought his first house in UAE recently.