Binance Discusses Crypto License with Dubai World Trade Centre
Global crypto exchange, Binance, has had a busy start to the year. A marked increase in regulatory scrutiny has seen Binance fall foul of regulators in several jurisdictions. These have included the US, the UK, India, and Canada.
Despite the increased scrutiny, Binance has continued to grow. Last week, FXEmpire reported Binance’s plans to buy mainstream corporations to drive blockchain adoption.
According to Bloomberg, Binance is in discussions with Dubai World Trade Centre free zone for a virtual asset service provider license.
The latest move comes off the back of Bahrain giving Binance an in-principal approval to be a crypto-asset service provider in the kingdom.
Last December, Binance also signed an agreement with Dubai World Trade Centre Authority to establish an industry hub for virtual assets. Binance will support Dubai’s ambition to drive economic prosperity through digital innovation.
For the crypto market and regulators, the latest news coincides with reports of Dubai becoming the go-to place for Russians.
According to Al Jazeera, Russians view the UAE as a safe haven. Russian clients are making crypto sales orders running into billions of dollars while also buying up real estate with crypto. One sale order alone was reportedly for 125,000 Bitcoin (BTC).
The latest news suggests that Russians can evade sanctions and relocate or liquidate assets in the UAE. It remains to be seen whether the US and other nations will target the UAE for its neutral stance and support for Russians.
This weekend, the US government warned China that there would be consequences for helping Russia evade sanctions.
For Binance, a similar warning to the UAE could lead to further regulatory scrutiny, particularly in NATO countries that include the US and the UK.