Dubai grants licenses to cryptocurrency exchanges Binance and FTX

For Hannah Perez

Binance and FTX are the first companies in the industry to receive licenses from the new cryptocurrency regulator in Dubai.

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Dubai, one of the seven emirates that make up the United Arab Emirates (UAE), has for the first time given the green light to two renowned crypto exchanges to operate in its territory.

Binance, the world’s largest cryptocurrency exchange by trading volume, on Wednesday obtained a license to operate as a digital asset service provider in Dubai. The company announced the news in a press release, noting that it is among the first Exchanges receive such a license.

In addition to offering commercial operations, Binance said it would establish a Blockchain Technology Center in the world trade center of Dubai, to sow new talents and build a dynamic ecosystem block chain. Changpeng Zhao, founder and CEO of the company, pointed out in this regard:

Binance appreciates being granted this license in such a progressive regime, the goal of which is uncompromising governance and market security.

FTX obtained Dubai’s first license

The news comes just a day later FTX became the first crypto company licensed to provide cryptocurrency services in Dubai. FTX Europeeuropean unity recently created cryptocurrency exchange FTXannounced the licensing in a statement on Tuesday.

FTX receiving this approval is a continuation of our mission to be at the forefront of licensing and regulation worldwide.FTX CEO Sam Bankman-Fried said in the post.

The first licenses for cryptocurrency exchanges in Dubai come shortly after UAE Prime Minister and Vice President Mohammed bin Rashid Al Maktoum announced the creation of the Virtual Assets Regulatory Authority (VARA)a body responsible for governing the cryptocurrency industry.

The independent authorityoversee the development of the world’s best business environment for virtual assets in terms of regulation, licensing, governance and in accordance with local and global financial systems“, according to the manager.

With licenses, both Binance What FTX they will be able to operate as cryptocurrency exchange and trading houses. Binance will be able offer limited trading products and services to pre-qualified investors and professional financial service providers. Regulators will closely monitor operations with a view to eventually opening up access to the retail market. Meanwhile, his rival FTXyou will be able to test cryptocurrency derivatives with institutional investors.

The New Middle East Crypto Hub

The granting of the first licenses for crypto exchanges in Dubai is part of a broader effort by the emirate to become a major global player in the digital asset industry. How did you report? DailyBitcointhe ultra-modern city in the United Arab Emirates has implemented various measures to promote the growth of the crypto sector.

In addition to the creation of a specific supervisory authority for digital currencies, the world trade center of Dubai (DWTC), a well-known shopping complex in the United Arab Emirates, last year rolled out a strategy to become an attractive hub for cryptocurrency businesses. The center has been declared by UAE regulators as a “free zone” crypto in September.

Meanwhile, the arrival of Binance in Dubai is part of the company’s global expansion program that includes the Middle East. That same week, the to exchange announced that it has received a license from the Central Bank of Bahrain (CBB) to establish itself as a crypto asset service provider in the kingdom. This is the first license from the Cooperation Council for the Arab States of the Gulf.

Binance it had already put forward its plan in December to open regulated services in Bahrain. At the time, the announcements came shortly after the company opened a company in Ireland and bought a stock exchange in Singapore.


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Sources: CoinDesk, CoinDesk, Decrypt

Article by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any particular investment. It should be noted that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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