Image courtesy of Binance Twitter page
- The UAE has announced plans to develop a crypto hub based in the Dubai World Trade Centre (DWTC).
- The blend of crypto regulation and innovation has pulled Binance to consider the country as its possible first headquarter, and fostered its latest regulatory deal with the DWTC Authority.
The United Arab Emirates has plans to develop a new crypto-dedicated economic sphere in Dubai. According to a Dec. 20 announcement by the Dubai Government Media Office, the new crypto hub will be based in the Dubai World Trade Centre (DWTC). The DWTC will serve as the official regulator of cryptocurrencies and other virtual assets in the hub. The region also overlooks other financial products, blockchain operators, and crypto exchanges.
The new crypto hub presents values that align with those of the Dubai Blockchain Strategy (DBS) – a blockchain adoption roadmap launched by Dubai’s Crown Prince, H.H. Sheikh Mohammed bin Rashid Al Maktoum, in 2016. The DWTC, on the other hand, plans to develop a “comprehensive ecosystem” for the growth of blockchain and crypto within a legislative framework. The initiative also furthers the DWTC’s four-decade narrative of growth and innovation.
UAE plans crypto hub establishment in Dubai
The Dubai Government Media Office stated;
The Dubai World Trade Centre will collaborate with the private sector and relevant entities in Dubai to create an attractive environment for the sector, and enforce rigorous standards for investor protection, Anti Money Laundering (AML), Combating the Financing of Terrorism (CFT) compliance and cross border deal flow tracing,”
This, according to the Office, is a significant milestone in the global city’s mission of digital transformation and blockchain adoption. The crypto hub would give Dubai a key role in “facilitating and broadening cross-border operations and ecosystem innovation.”
This development among other reports goes on to suggest a regulated but crypto-friendly air in Dubai and the greater UAE. Such an environment is likely what has motivated Binance to enter into a cooperation deal with the DWTC Authority (DWTCA). The exchange said in a statement today that it would assist in the development of digital asset regulations in Dubai. The nation’s crypto-friendly attitude might also have been factored in Binance’s consideration of the UAE as a candidate for its very first headquarter office.
Binance relations with the UAE
According to anonymous sources, Binance executives have been negotiating with officials from Dubai and Abu Dhabi on the same. Last month, CEO Changpeng Zhao said the giant crypto exchange had picked out a global headquarters, but would only reveal it following discussions with regulators.
Binance may also have chosen the UAE since some of its new hires are former senior officials from some of the nation’s economic zones. One of them is Mark McGinness from the Dubai Financial Services Authority. CZ has praised the UAE for being pro-crypto, along with Singapore and France. He even recently purchased a new home in the UAE.
Furthermore, the exchange has been under great regulatory pressure, with several consumer warnings being issued against it in a number of countries. Binance now intends to establish multiple regional headquarters, with further announcements on the same to be made next year. Its new partnership with the DWTCA may also vindicate it in the eyes of regulators in other jurisdictions, to its advantage.
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