Biance app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration
December 21, 2021
DUBAI (Reuters) -Cryptocurrency exchange Binance said on Tuesday it had signed a cooperation deal with Dubai World Trade Centre Authority, which is working to set up an international virtual asset ecosystem.
The Dubai World Trade Centre (DWTC) said on Monday that it will become a crypto zone and regulator for cryptocurrencies and other virtual assets, as the United Arab Emirates seeks to attract new business amid regional competition.
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.
“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.
Financial regulators across the world have this year targeted Binance, with some banning the platform from certain activities and others warning consumers that it was unlicensed to operate in their jurisdictions.
In response, CEO Changpeng Zhao said in July he wanted to improve relations with regulators.
Dubai World Trade Centre Authority (DWTCA), a so-called free zone within the UAE, agreed a framework in September allowing it to approve and licence 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.
(Reporting by Lisa Barrington and Tom Wilson; Editing by David Goodman and Alexander Smith)