Binance, a cryptocurrency exchange, has signed a Memorandum of Understanding (MoU) with the Dubai World Trade Centre Authority (DWTCA) with the aim of developing an industry hub in Dubai.
MoU between Binance and DWTCA
“Binance’s commitment to building a new worldwide Virtual Asset ecosystem that will generate long-term economic growth through digital innovation will be aided by the MoU,” the exchange said in a prepared statement.
It went on to say that the main purpose was to assist various crypto and blockchain-related businesses in “becoming licensed in Dubai.”
However, it is important to remember that this MoU does not grant Binance permission to operate in Dubai. Unlike a license, a Memorandum of Understanding (MoU) is an agreement between two companies that serves as the beginning point for negotiations.
They are not legally binding, but they do indicate that the parties involved have achieved an initial agreement and that the groundwork for both to proceed further has been created.
The exchange’s search for licenses is still ongoing.
Binance is looking for a license in the United States
Binance has struggled to gain the approval of regulators all over the world.
Malaysian regulators took action against the exchange after it was discovered to be operating illegally in the nation.
In the summer, the Financial Conduct Authority (FCA) in the United Kingdom issued a consumer warning against Binance Markets Limited, Binance’s UK business. After the firm failed to give basic information to the regulator, the FCA declared it “incapable” of being regulated.
Binance recently retracted its application for a license in Singapore, where CEO Changpeng Zhao (CZ) resides.
Following a succession of regulatory failures, Binance has redoubled its efforts to obtain a license elsewhere. The exchange has stated that it is attempting to obtain an FCA license once more but has yet to be successful.