Cryptocurrency News

Dubai Planning to Create Crypto Zone

The Dubai World Trade Centre has been selected for creating a comprehensive ecosystem for digital currencies, along with all crypto-related providers. The purpose of this move is part of the efforts of encouraging and supporting new industries. In order to accomplish this goal, the Emirate is going to seek assistance from crypto companies and platforms like Binance. The authorities in the United Arab Emirates want the DWTC to become a special zone that can be used by businesses dealing with digital assets to provide their products and services. In addition, the government of Dubai further announced that the Dubai World Trade Center would also act as the regulator for the crypto sector.

This means that it will be expected to enforce rigorous standards for ensuring anti-money laundering and investor protection, fighting terrorism financing and also cross-border deal tracking and compliance. The official announcement also elaborates that the aim is to develop the virtual asset market and space in Dubai by establishing a regulatory framework developed in the form of enforcement and legislative policies for innovative financial products. Officials are hoping that this will come in handy for facilitating the adoption of new trends relating to the blockchain and improve the standing of Dubai as a global business center.

It was further emphasized by Dubai authorities that the DWTC will also be collaborating with the private sector as well as other relevant entities in order to provide an attractive environment for the entire crypto space. They have already agreed on one such collaboration with the largest digital asset exchange globally in terms of trading volume, Binance. Dubai wishes to issue a license to such crypto trading platforms, along with other blockchain-related businesses. The authority that governs the Dubai Word Trade Centre has signed a memorandum of understanding with Binance. On Tuesday, the company announced that under this memorandum, it will share the experience it has had with others in the administration with the regulator.

According to a report published by Bloomberg, Binance has been negotiating with Abu Dhabi and Dubai for setting up its headquarters in the United Arab Emirates. The chief executive and founder of Binance, Changpeng Zhao (CZ) also purchased a home in Dubai recently and had also had a meeting with key representatives of Dubai’s crypto industry. The CEO was full of appreciation of the pro-crypto stance of the emirate, which he expressed on social media. The executive said on Tuesday that the adoption of blockchain and crypto is still in its initial stages.

He said that with Binace’s expertise and leadership position and Dubai’s long-term vision, they would be able to successfully develop a regulatory framework that would suit the progressive and fast-moving nature of virtual assets. According to the report, energy-rich Dubai has been looking into ways for boosting non-oil growth in order to ensure its economy’s sustainability. Therefore, they have come up with the project of transforming the Dubai World Trade Centre into a hub for cryptocurrencies as part of their overall efforts to give the economy a boost. 

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