Dubai has granted virtual assets license to Binance, the world’s biggest cryptocurrency exchange in terms of volume. Binance is now allowed to operate in the Gulf state for regional business.
On Wednesday, Binance announced that it plans on conducting operations in Dubai after receiving the license. The statement read “Binance will be permitted to extend limited exchange products and services to pre-qualified investors and professional financial service providers. All licensed VARA service providers will be monitored progressively to open access to the retail market.”
Binance will also open a blockchain-based technology hub in Dubai World Trade Centre (DWTC).
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In the past few years, Binance has faced multiple bans and regulatory penalties in different jurisdictions around the world. Financial regulators have criticized the exchange for failing to curb money laundering. Crypto is an effective means for moving black money across borders with anonymity.
United Arab Emirates (UAE) has been planning to enter the crypto space for quite some time now. As the economic competition grows in the region, countries have been trying to attract the digital assets market.
Last week, Dubai adopted its first law for the regulation of virtual assets including cryptocurrencies and NFTs. Moreover, VARA is established as a regulator for overseeing the crypto sector.
In December, Binance said it was working alongside DWTC to set forth an international virtual asset ecosystem. The exchange was also helping Dubai authorities with a virtual asset regulation set up.