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Binance says that it will assist, foster and facilitate the establishment of a pronounced crypto presence within the Dubai World Trade Centre Authority.
Leading crypto exchange Binance recently disclosed a cooperation deal with the Dubai World Trade Centre Authority (DWTCA). The world’s largest crypto trading platform made this known the day after DWTCA made an initial official announcement to create a new comprehensive crypto hub in Dubai, and become its regulator.
Now, according to the Binance partnership, the prominent crypto exchange platform will assist the Dubai governing authority in outlining its crypto vision. According to Binance, this encompasses fast-tracking the establishment of the new crypto industry hub for global virtual assets. In addition, Binance stated that it would also help push Dubai’s resolve to set up a new international digital asset ecosystem. This is to foster sustained economic growth aided by digital innovation. The Changpeng Zhao-led organization issued a statement on the Dubai initiative, which read in part:
“Binance believes that Dubai’s new agenda will contribute to the growth of the global economy. The goal is to assist crypto exchanges, businesses that offer blockchain and distributed ledger technology services, and a wide range of digital currencies and assets to become licensed in Dubai.”
Binance is also one of the first crypto exchange platforms to tap into the new DWTCA project. The desert city is part of the broader scheme by the United Arab Emirates to become a crypto mainstay.
Furthermore, Dubai happens to be at the epicenter of the regional competition looking to attract new businesses. The ‘free zone’ DWTCA agreed to a framework in September which allowed it to approve and license crypto-related financial activities. About a month later, another Dubai free zone, Dubai International Financial Centre (DIFC), made its own move. The specialized economic zone disclosed the first part of its planned regulatory framework for digital assets.
Binance Possibly Envisions New Beginnings with Dubai World Trade Center Initiative
Binance’s newly-established working relationship with the DWTCA could prove to be a welcome boon for the crypto exchange. Having weathered intense scrutiny on the global front, the platform has struggled to establish relationships with several financial regulators. At the height of its embattlement, Binance even had to shut down or suspend some of its services in several European countries. These include Germany, the Netherlands, and Italy.
Furthermore, the regulatory authorities of several other countries flagged the crypto exchange platform for a number of infractions. Back in July, the Italian Companies and Exchange Commission said the Binance Group had no permission to operate in Italy.
Also, around the same period, the US Securities and Exchange Commission filed a criminal complaint against Binance for operating without a license. The SEC chose to go this route after the crypto exchange ignored its earlier ‘cease and desist’ warnings. A month earlier, The UK’s Financial Conduct Authority (FCA) had revoked Binance’s ability to trade in Britain. This came amid a sweeping regulatory crackdown on crypto exchanges in the country.