Binance Helping Dubai Crypto Zone Develop Regulations

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In Brief
  • Binance is partnering with the Dubai World Trade Centre Authority (DWTCA) to help develop regulations for the fledgling cryptocurrency center.

  • Having collaborated with global regulators after coming under scrutiny this year, Binance plans to share this experience with the DWTCA.

  • The move contributes to growing speculation that Binance intends to establish a headquarters in the UAE.

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Binance is partnering with the Dubai World Trade Centre Authority (DWTCA) to help develop regulations for the fledgling cryptocurrency center.

The world’s largest cryptocurrency exchange by volume signed a Memorandum of Understanding (MoU) with the DWTCA, according to a post on the company’s blog. Binance said it would “help advance Dubai’s commitment to establishing a new international Virtual Asset ecosystem.”

Having collaborated with global regulators after coming under scrutiny this year, Binance plans to share this experience with the DWTCA to facilitate the development of the country’s regulatory regime. Another stated goal was to assist in the licensing of “crypto exchanges, businesses that offer blockchain and Distributed Ledger Technology (DLT) services, and a wide range of digital currencies.”

“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,” said Binance CEO Changpeng “CZ” Zhao.

Crypto zone

Earlier this week, the Dubai Media Office declared that the Dubai World Trade Centre (DWTC) would become a crypto zone, as well as a regulator for cryptocurrencies and other virtual assets. Amid intensifying regional economic competition, the DWTCA is working to establish an international virtual asset ecosystem in an effort to attract new business.

A “free-zone” within the United Arab Emirates (UAE), the DWTCA had agreed to the framework enabling it to approve and license crypto-related financial activities in September. Meanwhile, another free-zone, Dubai International Financial Centre (DIFC) established an initial regulatory framework for digital tokens in October.

Binance in UAE

The move contributes to growing speculation that Binance intends to establish a headquarters in the UAE. Last week, Binance executives met with officials from special economic zones within the UAE about a prospective move. Zhao had said last month that Binance had chosen a location for its global headquarters but would only announce it after communicating with regulators.

There are other indicators pointing to the UAE as Binance’s choice. For one, Binance recently acquired former senior officials from a few of the economic zones. Additionally, Zhao had earlier praised the UAE as being “pro-crypto,” along with France and Singapore, and recently bought his first home there as well.

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Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage.

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