The world’s largest cryptocurrency exchange, Binance, has been having conversations with the Dubai World Trade Centre for the approval of its activities in the free zone. Yesterday, the exchange finally received the approval it needed in the form of a license.
This is the second license for Binance from that area as the crypto exchange recently received a license from the Central Bank of Bahrain (CBB) barely 48 hours before Dubai. Binance will now be allowed to expand its range of products and services to investors who are qualified and other experts who provide financial aid.
Last month, the United Arab Emirates (UAE) strategically initiated regulatory structures to stimulate the growth and development of the crypto ecosystem. The nation’s focus for the regulations is to issue federal licenses to crypto or Virtual Asset Service Providers (VASPs).
A government agency of the Emirate, the Security and Commodity Authority (SCA), was saddled with the responsibility of organizing the proceedings of the distribution of the license. This is currently at the last phase and is getting ready for endorsement.
Binance is one of those VASPs that wish to possess this operational license and the exchange is strongly positioning itself for the license. Essentially, the exchange is seeking a license to operate in different countries, especially after its activities were stopped in Israel on the premise of lack of an authorized license.
In addition to the Dubai license, Binance will lead a blockchain hub in the Dubai World Trade Centre to develop fresh talents and grow the current crypto space in Dubai. Binance CEO, Changpeng Zhao stated how critical and pertinent these high streams of regulation are to the growth and development of the crypto ecosystem.
According to Zhao, Binance appreciates the opportunity to hold the Dubai license and also unite with the regulatory body to eradicate market and financial instability while sticking to the set governance structures.
Getting the license will not be all that the Security and Commodity Authority requires of the VASPs as they will be supervised closely to ensure that all laid structures and regulations are effectively carried out to the letter.