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Dubai is emerging as one of the largest hubs for cryptocurrency trading. The world’s largest exchange by trading volumes, Binance, is looking to scoop a share of the Dubai crypto market by obtaining an operating license.
A report from Bloomberg noted that Binance is already holding talks to get an operating license in Dubai. If it obtains this license, Binance could cement its presence in the Middle East.
Binance is holding talks for a Dubai license
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According to a person familiar with the matter, Binance wanted to become a service provider in the Dubai World Trade Centre “free zone.” The anticipation to get this license comes as Dubai passes a law that will regulate virtual assets.
Sheikh Mohammed bin Rashid Al Maktoum wants to make Dubai a major hub for cryptocurrency activities. Towards the end of last year, Binance had signed a deal with the Dubai World Trade Centre Authority (DWTCA) to make the country a global crypto hub.
Dubai working on crypto regulations
Binance founder and CEO Changpeng Zhao noted, “Regulatory clarity is so important. This new virtual asset law in Dubai is a great step forward.” The UAE is setting up a regulatory entity that will oversee crypto activities. This body will monitor all crypto transactions and protect them from price manipulation.
The UAE has been staying ahead of the digital asset sector for several years. In 2018, the country launched the “Court of Blockchain” under the Dubai International Financial Center. Binance has committed to working with Dubai and the entire UAE state to develop a “world-class and progressive” regulatory framework for digital assets.
The Binance cryptocurrency exchange has its roots in China. Binance is yet to set up a headquarters for its global operations. However, the exchange has announced plans to open its headquarters in the UAE.
The UAE is a strategic location for Binance to expand its presence in the Middle East. The UAE is currently the third-largest cryptocurrency market in the Middle East. It comes third after Turkey and Lebanon, with the transaction volumes standing at around $26 billion between July 2020 and June 2021.