Cryptocurrency exchange Binance recently reported that it has signed a memorandum of understanding with the Dubai World Trade Centre Authority (DWTCA) to set up an international industrial hub in Dubai.
To support this, Binance will take part in this knowledge-sharing ecosystem by sharing its experience of working with global regulators to help develop progressive virtual asset regulations.
The goal is to assist cryptocurrency trading platforms, businesses offering blockchain and distributed ledger technology (DLT) services and various digital currencies and assets to be licensed in Dubai.
“Through this Memorandum of Understanding, Binance will, in turn, strengthen Dubai’s dedication to developing a new worldwide ecosystem of digital assets that will provide lifetime sustained economic performance based on the power of digitalized technological innovation,” said Binance in a prepared release.
It added that the primary aim was to help various crypto and blockchain-related companies “obtain a license in Dubai.” However, it is worth mentioning that this memorandum of understanding is actually of course not like a license allowing Binance to do business in Dubai. In contrast to a license, MOUs are understandings among the parties which are viewed as the basis for further discussions.
These are not considered legally enforceable, but simply signify that an initial accord between the parties concerned was reached and the basis was set for both to advance. Regarding licensing, the pursuit of the exchange is underway.