Sunday 04 June 2023 - 4:08:37 am

DWTCA signs agreement with Binance to participate in the world’s first virtual asset ecosystem

DUBAI, 21st December, 2021 (WAM) -- The Dubai World Trade Centre Authority (DWTCA) has signed a cooperation agreement with Binance, the world’s leading blockchain and cryptocurrency infrastructure provider, to establish a new international Virtual Asset ecosystem that enhances Dubai position as a global hub for the industry and generates long-term economic growth through digital innovation.

The agreement follows a recent announcement establishing DWTCA as the comprehensive zone and regulator for virtual assets and reflects Dubai’s continuous efforts to adopt advanced technologies, especially in Fin-tech sector.

Binance is one the largest cryptocurrency exchanges in the world, responsible for $7.7 trillion crypto exchange volume in 2021, while the daily trading volume is around $80 billion, and the number of users is estimated at 28 million.

Helal Saeed Almarri, Director-General of DWTCA, said, "Innovation is a byword for Dubai and this ‘Future-Economy’ environment is designed to catalyse collaboration, stimulate innovation and most importantly assure protection. In line with Dubai’s vision for a fully digital and inclusive society, this world’s first specialist Authority is Dubai’s active response to the industry’s call for support – so that service providers, technology enablers, and governments can co-create the next generation ecosystem for the global Virtual Asset Economy."

DWTCA’s agreement with Binance to be one of the anchors in this new ecosystem is a pioneering move that aims to strike a balance between value creation and risk mitigation, prioritising equal investment enhancement opportunities for society while protecting the most financially vulnerable as priority.

The agreement reflects DWTCA’s commitment to engage with global industry shapers, and thought leaders, in order for Dubai to be able to create the first-of-its-kind ‘model’ Virtual Assets framework for the international community.

As per the agreement, Binance will also participate in this knowledge-sharing ecosystem by sharing its experience in collaborating with global regulators to aid the development of progressive Virtual Asset regulations. The goal is to help crypto exchanges, or businesses that offer blockchain and DLT services, or a wide range of digital currencies and assets to become licensed in Dubai.

Changpeng Zhao (CZ), Founder and CEO of Binance, said, "I am grateful for the confidence the Dubai World Trade Centre Authority has placed in Binance. Together, we share a vision for helping Dubai embrace the new future economy that includes crypto and blockchain. Today, the adoption of crypto and blockchain technology remains in its infancy, but through our leadership position and expertise, combined with the long-term vision of Dubai, we plan to develop a regulatory framework appropriate to fit the fast-moving and progressive nature of virtual assets."

Dubai’s Virtual Asset ecosystem aims to create a robust regulatory and legislative framework that will support innovation, ensure safe market adoption, and facilitate global acceptance.

WAM/Lina ibrahim/Hazem Hussein