DUBAI – After legalizing the virtual asset regulatory authority (VARA) cryptocurrency law, Dubai has given the green light for the world’s largest crypto exchange platform, Binance to operate in its territory.
“Binance will be allowed to expand limited exchange products and services to pre-qualified investors and professional financial service providers. All licensed VARA service providers will be monitored progressively to open access to the retail market,” said DWTC Authority Director General Helal Saeed Almarri.
This was also confirmed by Binance, through an official statement on its website account, Binance said that it would expand its expansion to Dubai, after VARA granted a license to Changpeng Zhao’s platform to operate serving Dubai residents.
Almarri, who was quoted by Reuters, said that later not only Binance, all crypto companies in the Dubai area, will be sheltered by a blockchain technology center called the Dubai World Trade Center (DWTC). In this way the existence of the platforms and their users will be protected by the central government.
For information, Binance is not the first crypto company to be licensed by the Dubai government, previously there was a coinbase company FTX which officially announced its development in Dubai earlier this week.
This effort was deliberately carried out by Dubai to assist the United Arab Emirates (UAE) in encouraging and building the virtual asset sector in order to attract foreign investors to invest in the region. In this way, the UAE can increase its regional economic competition.
Dubai is one of the seven emirates that make up the UAE federation. After last week officially adopted a law that regulates the legalization of virtual assets, and established VARA as the regulator to oversee the sector. Making Dubai’s position further strengthens the UAE in the international cryptocurrency market.