Hey there guys, you may have heard that the world largest crypto exchange, Binance was in talks with the Dubai and Abu Dhabi administration for some time now. So, that it could expand into the Arab region. But the surprise factor happened when on December 20, an announcement was made by Binance that Binance and Dubai’s World Trade Centre has officially struck a deal regarding the regulations and management of virtual assets.
What does this mean for Binance?
This mainly means that from now on Binance would be one of the key players to share their vast knowledge and working experience with the administrations of UAE and the surrounding Gulf nations to frame up the much-required crypto regulations in the region.
Further, this memorandum of understanding also creates favourable conditions for Binance to spread its network and influence in the Gulf region and set up its global HQ here. As Binance already had an eye to spread over this region and also to set up its global headquarter’s here as its previous plan of opening the HQ in Singapore went up in smokes when its operating license over there recently got revoked.
What does this mean for the UAE?
For some time now, the UAE was looking for an alternate source of income in terms of environmental sustainability from its major traditional oil-based income source. So, as you may have guessed that this new major development may mean that the UAE government is not only serious about regulating crypto but maybe even planning to make an income out of it by first creating favourable conditions for the crypto industry to thrive and co-exist with the current market conditions by helping to set up crypto trading platforms, staking platforms, mining industry and other crypto-based innovations. Then, later impose different tax slabs throughout the crypto industry to earn good revenue from it.
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