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Binance to Establish Crypto Hub in Dubai, Signs Agreement with Authority

Binance seeks to establish a crypto hub in Dubai and proceeds with signing a Memorandum of Understanding to set the foundations for it.

Dubai
Photo by Kijevskymarek / Envato

Binance, the crypto exchange has announced it has signed a Memorandum of Understanding (MoU) with the Dubai World Trade Centre Authority (DWTCA), with the objective being to establish an industry hub in Dubai.

In a prepared statement, the exchange said “With the MoU, Binance will help advance Dubai’s commitment to establishing a new international Virtual Asset ecosystem that will generate long-term economic growth through digital innovation.”

The primary goal, the exchange added, was to help numerous crypto and blockchain-related businesses “to become licensed in Dubai.”

What’s noteworthy here though is that the MoU isn’t an official license for Binance to begin its operations in Dubai. Contrasting an actual license, MoU’s act as agreements in a sense, between 2 parties that signifies the starting point for negotiations.

While not legally binding, they serve as a signal to inform the relevant parties that the foundation has been set, the groundwork has been laid for everyone to move forward.

The quest for the exchange’s licenses is still a work in progress. Binance has had a very difficult time getting the approval of regulators around the world.

Regulators situated in Holland and Japan issued customer warnings about the exchange just this year. The Cayman Islands and Italy also announced that Binance isn’t licensed to do business in their jurisdictions, too.

Binance also faced a ton of issues in Malaysia in the form of enforcement action after regulators said they were operating illegally in the country.

Over in the UK, the FCA or Financial Conduct Authority also issued a consumer warning against Binance Markets Limited, the UK entity of Binance, in the summer. The FCA later said the firm was “incapable” of being regulated once it failed to provide even basic information to the regulator.

Quite recently Binance also withdrew its application for a Singapore-oriented license, where the CEO Changpeng Zhao (CZ) lives.

In light of its various shortcomings, Binance has in fact renewed efforts to gain a license elsewhere. They’ve said that they’re trying for an FCA license again, but there’s no success down on that front yet.

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