Crypto exchange Binance on Tuesday announced that it has signed a cooperation agreement with the Dubai World Trade Center Authority (DWTCA). The parties to the agreement will create an international ecosystem of virtual assets, the announcement says.
On Monday, DWTCA announced plans to transform the territory into a cryptocurrency zone with a special business regulation regime. The initiative is part of a broader UAE plan to attract entrepreneurs amid increasing economic competition in the region.
“Robust standards will be developed for investor protection, anti-money laundering, anti-terrorist financing, legal compliance and tracking cross-border transactions,” the management said.
Binance, the world's biggest cryptocurrency exchange by trading volumes, said in a statement that it intends to assist the development of virtual asset regulations in Dubai.
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"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," it said.
Binance is considering the UAE as one of the regions to host its headquarters. Bloomberg confirmed last week that the company is discussing plans with local authorities.
“We are considering several potential strategies, including setting up multiple regional headquarters,” Binance said.
Earlier this year, Binance became a target of financial regulators across the world, with some banning the crypto exchange from certain activities and others warning consumers that it was unlicensed to operate in their jurisdictions.
Following the crackdown on the platform, CEO Changpeng Zhao said in July he’s willing to step down from his role as Binance seeks to become a regulated financial institution.
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Dubai World Trade Centre Authority, a so-called free zone within the UAE, agreed on a framework in September allowing it to approve and license crypto-related financial activities.
And in October, Dubai International Financial Centre (DIFC), another Dubai free zone, released the first part of a regulatory framework for digital tokens.
"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," Zhao said.
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