• In response to the FTX collapse, current reports claim that Dubai is becoming more scrutinizing of businesses applying for cryptocurrency licenses.
• Binance’s application highlights Dubai’s increasing significance as a global hub for digital asset trading and blockchain technology.

According to recent reports, as part of its ongoing efforts to license the platform, the Dubai World Trade Center Authority (DWTC) has asked cryptocurrency companies for additional information, including those who are currently applying for operating licenses in the emirate. This includes Binance, a major cryptocurrency exchange.

The DWTC has been intensifying its efforts to regulate the cryptocurrency industry in the region, and this latest move shows that it is taking a more proactive approach in overseeing the operations of crypto exchanges.

The DWTC is now requiring Binance to provide more detailed information about its operations, including its compliance procedures, risk management protocols, and internal controls. On the brighter side of things, Binance’s application highlights Dubai’s increasing significance as a global hub for digital asset trading and blockchain technology, attracting industry leaders and startups alike.

Binance’s efforts to obtain a license in Dubai come at a time when many regulators around the world are cracking down on the cryptocurrency industry. However, Binance has been taking a proactive approach to regulatory compliance, and this latest move shows that it is committed to working with regulators to ensure that its operations meet the highest standards.

The article tries hard to categorize Binance and FTX together, including the choice of the article title.

We are different. 4/9

— CZ 🔶 BNB (@cz_binance) February 28, 2023

As reported by Crypto-NewsMedia the exchange and its chief executive have had lawsuits filed against them consecutively. The lawsuit filed by CFTC alleges that the defendants violated regulations governing derivatives and accused the company of having “sham” compliance procedures. Five days later the Moscowitz law firm and Boies Schiller Flexner filed a $1 billion lawsuit against the exchange and three other cryptocurrency influencers.

Also Read: Binance Faces Legal Trouble Yet Again: CZ and Influencers Sued for $1B

Is Dubai the world’s most crypto-ready city in 2023?

The government of Dubai’s stated goal of becoming a financial technology center was boosted in February 2023 when its Virtual Assets Regulatory Authority (VARA) released its 2023 rulebook for regulating cryptocurrency. The regulatory authority says any entity in the Emirate that issues virtual assets must comply with the rulebook, beginning with applying for a license to operate in Dubai.

In December 2021, Binance signed a Memorandum of Understanding (MOU) with the Dubai World Trade Centre Authority intending to establish a hub that could help other blockchain-related companies get licensed in Dubai.

It is important to note, however, that this MoU is not a license for Binance to operate in Dubai. In contrast to a license, MoUs are agreements between parties that are seen as the starting point for negotiations.

According to the new rulebook, any entity wishing to do business using cryptocurrency must seek authorization and receive a license from the regulatory authority before offering their services.

A license can be revoked, the rulebook says, for various reasons, including material violation of any law, regulation, rule, or directive, insolvency, being subject to insolvency proceedings, or failure to pay a judgment by a court within or outside of the United Arab Emirates.

The DWTC’s request for additional information from Binance is a positive step toward regulating the cryptocurrency industry in Dubai. Binance’s efforts to obtain a license in the region demonstrate its commitment to regulatory compliance and working with regulators to build a more transparent and trustworthy industry.