Binance Officially Signs Agreement with Dubai Authority

Popular crypto exchange Binance has announced that it has signed a Memorandum of Understanding (MoU) with the Dubai World Trade Center Authority. The aim of this collaboration is to set up an industry hub in Dubai.

New partnership for Binance

The exchange reports the following about signing the MoU:

“With the MoU, Binance is helping Dubai establish a new international Virtual Asset ecosystem. This will generate long-term economic growth through digital innovation.”

The exchange added that the main goal they have is to help various crypto and blockchain related companies get licensed in Dubai.

It is important to note that this MoU is not a license for Binance to operate in Dubai. Unlike a license, MoUs are agreements between parties that are seen as the start of negotiations. They are not legally binding, but rather indicate that the relevant parties have reached an initial agreement. This lays the foundation for both to continue working together. When it comes to licensing, the exchange’s search is in full swing.

Where does Binance want to be licensed?

Binance struggles to please regulators around the world. Regulators in the Netherlands and Japan warned consumers about the exchange this year. The Cayman Islands and Italy have both announced that Binance is also not licensed to conduct business in their jurisdictions.

The exchange faced enforcement action in Malaysia after regulators said the exchange was operating illegally in the country.

In the United Kingdom (UK), the Financial Conduct Authority (FCA) issued a warning against Binance Markets Limited over the summer. This is the UK entity of Binance. The FCA later said the company was unable to become regulated after failing to provide basic information to the regulator.

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Recently, Binance withdrew its application for a license in Singapore, where CEO Changpeng Zhao (CZ) resides. However, Binance has again made an effort to obtain a license elsewhere. The exchange has said it is trying again to obtain an FCA license, but has been unsuccessful so far.

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