On Tuesday, crypto exchange Binance signed a cooperation deal with Dubai World Trade Centre Authority (DWTCA), working on setting up an international virtual asset ecosystem. This government-backed Dubai project aims to set up an attractive environment for the crypto industry.
As Reuters reported, 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 UAE 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 worldwide 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.
Last month, Zhao revealed he bought his first home in Dubai, a city he describes as “very pro-crypto.”
“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,” he said.
Dubai World Trade Centre Authority (DWTCA), a so-called free zone within the UAE, agreed a framework in September allowing it to approve and license crypto-related financial activities.
Binance and DWTCA deal comes in line with Dubai’s growing efforts to support the crypto development as both Dubai and the UAE have been working for the local economy to benefit from blockchain technology, NFTs, and cryptocurrencies.
And in September, DWTCA and the UAE’s financial regulator (SCA) have approved a regulatory framework for trading crypto assets in DWTCA free zone.