Binance Makes Deal with Dubai Authority to Create Crypto Hub

Binance has signed an agreement with the Dubai World Trade Centre Authority. Binance has revealed that it has signed a Memorandum of Understanding (MoU) with Dubai World Trade Authority (DWTCA) with the focus to create an industry hub in Dubai.

Binance said in a prepared statement, "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 exchange added that the main objective was to assist various blockchain-related businesses and cryptocurrencies "to become licensed in Dubai."

However, it is important to note that this agreement is not a license for the exchange to operate in Dubai. Unlike licenses, MoUs are agreements signed between parties and serve as the starting point for further negotiations.

MoUs are not legally binding, but serve to demonstrate that involved parties have signed an initial agreement to set the foundation for both to pursue the objective.

When it comes to licenses, Binance's quest is in progress.

The exchange platform has had a difficult time satisfying regulators globally.

For instance, regulators in Japan and Holland issued consumer alerts concerning Binance this year. At the same time, Italy and the Cayman Islands both stated that the exchange isn't permitted to do business in their respective territories.

Binance also faced enforcement action in Malaysia following the regulator's announcement that it was operating in the country illegally.