Binance will build a crypto hub with the Dubai World Trade Centre Authority (DWTCA).
World’s largest crypto exchange, Binance is planning to build a crypto hub in Dubai, UAE.
On Tuesday, Binance signed a Memorandum of Understanding (MoU) with (DWTCA) to establish an industry hub for Global Virtual Assets.
The UAE is a known tax haven. For the past few years, Dubai is trying to pivot from a crude oil based economy to a financial services and tech economy along with tourism.
Consequently, the Emirate has reached out to global fintech giants to establish their presence in the state.
To realize Dubai’s vision, Binance will set up an International Virtual Asset ecosystem that will “generate long-term economic growth through digital innovation.”
Through collaboration with the Dubai Government, Binance aims to join forces with global regulators to formulate crypto regulations.
It defines its goal as to assist crypto and blockchain related businesses get licensed in Dubai.
This news has come after it was officially announced on Monday that the DWTC will become a Comprehensive Zone and Regulator of Cryptocurrencies.
The DWTC plans to create a safe environment by enforcing the standards for investor protection, Anti Money Laundering (AML), Combating the Financing of Terrorism (CFT) compliance and cross border flow tracing.
Dubai is positioning itself as the global crypto hub with its efforts.
A few months back, it had established regulations for investment tokens. Now it is formally establishing a tech hub. In the past, it has hosted several high profile events as well.
Dubai is competing with El Salvador, which has adopted Bitcoin as legal tender.
Who knows Dubai might regulate cryptocurrencies after El Salvador?
What do you think? Comment below.
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