News of Binance targeting Dubai for a license coincides with reports of Russians targeting UAE crypto exchanges to offload cryptos.
Binance is reportedly in discussions to obtain a license to operate in Dubai.
News reports over the weekend talk of Russians flooding to the UAE to evade sanctions.
Binance could face more regulatory scrutiny as a result of its UAE plans.
Global cryptoexchange, Binance, has had a busy start to the year. A marked increase in regulatory scrutiny has seen Binance fall foul of regulators in several jurisdictions. These have included the US, the UK, India, and Canada.
Despite the increased scrutiny, Binance has continued to grow. Last week, FXEmpire reported Binance’s plans to buy mainstream corporations to drive blockchain adoption.
Over the weekend, news hit the wires of Binance eyeing a Dubai crypto license.
Binance Eyes Dubai License
According to Bloomberg, Binance is in discussions with Dubai World Trade Centre free zone for a virtual asset service provider license.
The latest move comes off the back of Bahrain giving Binance an in-principal approval to be a crypto-asset service provider in the kingdom.
Last December, Binance also signed an agreement with Dubai World Trade Centre Authority to establish an industry hub for virtual assets. Binance will support Dubai’s ambition to drive economic prosperity through digital innovation.
According to the Binance press release,
The goal is to assist crypto exchanges, businesses that offer blockchain and Distributed Ledger Technology (DLT) services, and a wide range of digital currencies and assets to become licensed in Dubai.
For the crypto market and regulators, the latest news coincides with reports of Dubai becoming the go-to place for Russians.
Binance Targets Dubai as Russian Money Floods In
Over the weekend, crypto firms in the United Arab Emirates (UAE) reported major crypto sales orders.
According to Al Jazeera, Russians view the UAE as a safe haven. Russian clients are making crypto sales orders running into billions of dollars while also buying up real estate with crypto. One sale order alone was reportedly for 125,000 Bitcoin (BTC).
The latest news suggests that Russians can evade sanctions and relocate or liquidate assets in the UAE. It remains to be seen whether the US and other nations will target the UAE for its neutral stance and support for Russians.
This weekend, the US government warned China that there would be consequences for helping Russia evade sanctions.
For Binance, a similar warning to the UAE could lead to further regulatory scrutiny, particularly in NATO countries that include the US and the UK.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.