Binance seeks to obtain a Dubai license as the Emirate adopted a law on virtual assets

    10 Mar 2022

    Binance Holdings is in talks to obtain a license to operate in Dubai, said Bloomberg, citing a person familiar with the matter. The move comes after Dubai adopts its first law governing virtual assets.

    As Bloomberg reported Wednesday, the world’s largest crypto exchange Binance is in talks with the Dubai World Trade Centre free zone to acquire a license to operate as a virtual asset service provider.

    In December, Binance signed an agreement with the Dubai World Trade Centre Authority (DWTCA) to help establish Dubai as a new industry hub for Global Virtual Assets.

    In a tweet on Wednesday morning, Binance CEO Changpeng Zhao praised Dubai’s adoption of its first law governing virtual assets, which included establishing a regulator to oversee such assets. “Regulatory clarity is so important. This new virtual asset law in Dubai is a great step forward,” Zhao wrote.

    Before, Sheikh Mohammed bin Rashid Al Maktoum announced the creation of a regulatory and licensing authority, aiming to be a “major player” globally in digital assets.

    “The future belongs to whoever designs it,” tweeted Dubai’s ruler. “Today, through the virtual assets law, we seek to participate in the design of this new and rapidly growing global sector.”

    The independent authority, by his words, will “oversee the development of the best business environment in the world for virtual assets in terms of regulation, licensing, governance, and in line with local and global financial systems.”

    The Emirate of Dubai is one of seven emirates forming the nation of the United Arab Emirates (UAE). Another emirate, Abu Dhabi, has also been aggressive in its aim to become a crypto hub.

    The Securities and Commodities Authority of the UAE issued a statement Tuesday saying it was nearing the issuance of a regulatory framework related to digital assets.

    Also, Binance has recently received preliminary approval from Bahrain’s central bank to become a crypto asset service provider there.

    Leave a Reply

    Your email address will not be published. Required fields are marked *