Binance may obtain a license to carry out activities related to cryptocurrency in the capital of the UAE, Abu Dhabi. Why is it important?
One of the most popular cryptocurrency exchanges Binance can get a license in the UAE. The exchange has received in-principle approval from Abu Dhabi Global Market (UAE’s main regulatory body) to operate as a virtual asset broker.
Binance may obtain a license for its crypto activities in the UAE
Crypto exchange Binance announced the final steps to obtain a license for a type of activity related to the cryptocurrency industry in Abu Dhabi.
If the full licensing process in Abu Dhabi — the capital of the United Arab Emirates — is successful, the exchange said it will be able to offer its virtual asset services to customers in the North Africa and South Asia region through its subsidiary Binance (AD).
“Binance is actively engaging with global regulators. Such as, for example, ADGM, as part of its ongoing commitment to comply with global standards and jointly promote the development and sustainable growth of the crypto ecosystem,” said Richard Teng, head of the company for the Middle East and Africa.
The United Arab Emirates Is The Most Attractive Jurisdiction For Crypto Companies
The UAE has become the preferred jurisdiction for cryptocurrency exchanges. As well as storage, exchange platforms and other startups.
For example, the FTX exchange, one of the main competitors of Binance, last month received a license Virtual Asset Service Provider (VASP) in Dubai. The BitOasis platform, the first VASP recognized in the country, has also received prior regulatory approval. Bybit and Crypto.com are also expanding their footprint in the region.
The co-founder and CEO of Binance told Bloomberg late last month that Dubai will be its base in foreseeable future”. And also according to “any conventional interpretation”, this is the headquarters of the company. According to him, many employees of the firm will follow his example. And as a result, they will move to Dubai in the coming months.
Binance Can Be Licensed: Why Is Company Licensing Relevant?
Now every major cryptocurrency company understands that it is necessary to enter the legal field of activity. As a result, companies are trying to cooperate with government agencies and obtain licenses in reliable jurisdictions. These include, for example, the United Arab Emirates, Switzerland, Liechtenstein.
Germany may also join these countries in the future. Proper regulation of the cryptosphere this year may allow the government to expand the presence of crypto companies in its jurisdiction. This contributes to the inflow of funds from the tax collections of companies, as well as the popularization of cryptocurrencies in the country.