Binance Will Operate In Dubai, But Still Waiting For Virtual Asset Law To Be Completed
JAKARTA – Crypto exchange company Binance, through Binance Holdings Ltd., is reportedly waiting for a permit to operate in Dubai, UAE. If this is successful then Binance could strengthen its presence in Middle Eastern countries.
Binance has the potential to provide its services at the Dubai World Trade Center. Previously, the UAE was preparing a new law to regulate various virtual assets. The Prime Minister of the UAE and the Emir of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, is working to push the Arab Country to become a leading global crypto hub.
“Regulatory clarity is very important. Dubai's new virtual asset law is a tremendous step forward," Binance CEO Changpeng Zhao tweeted.
Reporting from CryptoPotato, in December last year, Binance signed an agreement with the Dubai World Trade Center Authority (DWTCA) to develop and make it a global virtual asset center.
This authority will oversee the issuance and trading of virtual assets and companies providing crypto services must first obtain their approval. In addition, the new regulatory entity will also “monitor transactions and prevent manipulation of virtual asset prices.”
The UAE states have taken a proactive stance towards crypto assets for several years. For example, the Dubai International Financial Center established the “Blockchain Court” in 2018.
“We welcome this important development,” Richard Teng, MENA head for Binance, said in a statement. “We continue to work closely with DWTC to help build Dubai as a world-class and progressive crypto regulatory environment.”
The company was founded in China but has not yet established a global base. In recent months, Binance executives have held talks with regulators in the UAE about a potential headquarters in the country.
The UAE is the third-largest crypto market in the Middle East, after Turkey and Lebanon, with a transaction volume of around $26 billion, according to data from Chainalysis, from July 2020 to June 2021.