Binance, the world's largest cryptocurrency trading platform, recently struck an agreement with the Dubai World Trade Centre Authority (DWTCA), which is attempting to establish an international virtual asset ecosystem. With this deal, Binance became one of the first cryptocurrency exchanges to join the DWTCA's new crypto centre. Binance will contribute to Dubai's goal of creating a new international virtual asset ecosystem that would spur long-term economic growth through digital innovation. This agreement will go a long way toward assisting the United Arab Emirates in attracting new companies.
Significance
In an announcement, Binance stated that with this deal the company will help DWTCA “outline the vision of accelerating the set-up of a new industry hub for Global Virtual Assets”. Outlining the company's goal, Binance said that it wanted to “assist crypto exchanges, businesses that offer blockchain and Distributed Ledger Technology (DLT) services, and a wide range of digital currencies and assets to become licensed in Dubai”.
A few days ago, Changpeng Zhao, the CEO of Binance, tweeted just one word — “Dubai” — after the company had signed the agreement with DWTCA.
Dubai https://t.co/yzTbV76geb
The DWTCA is a free zone in the United Arab Emirates. In September, it agreed to a framework that would enable it to authorise and licence cryptocurrency-related financial transactions. Another free zone, the Dubai International Financial Centre, began the first stage of a regulatory framework for digital tokens a month later in October.Binance believes that Dubai's new agenda would help the world economy grow. To aid the development of virtual asset legislation, the company will share its experience in engaging with worldwide regulators.
Financial regulators throughout the world have been targeting Binance this year, with some banning the platform from certain operations and others informing consumers that it is not licenced to operate in their territories. Germany, Italy, the United States, the United Kingdom, Canada, Japan, Poland, are among the countries that have flagged Binance's operations. As a result, the cryptocurrency exchange's agreement with the DWTCA could be significant for the company.
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