DUBAI LICENSES BINANCE AND FTX

[Husires]

With this license, “Binance will be capable of function inside Dubai’s ‘test-adapt-scale’ digital asset market mannequin as a base for growth into the area,”

Much like Binance, FTX defined that the license permits it “to function inside Dubai’s ‘test-adapt-scale’ VA market mannequin which has rigorous regulatory oversight and necessary FATF [Financial Action Task Force] compliance controls.”

Cryptocurrency exchanges FTX and Binance have been licensed by Dubai’s Digital Asset Regulatory Authority (VARA). The regulator was established final week when the primary regulation to control crypto property was adopted in Dubai.

Binance introduced Wednesday:

We now have been granted a digital asset license from Dubai’s Digital Asset Regulatory Authority (VARA).

Source: https://www.metaverseprofessor.com/2022/03/19/dubais-new-digital-asset-regulator-licenses-crypto-exchanges-binance-ftx-regulation-bitcoin-information/

• Binance activity has entered the Middle East and North Africa region, and Dubai is fast in adoption.
• we may see more institutional users who may rush to adopt cryptocurrencies in that region.
• I see that the competition between FTX and Binance has begun to increase, which is a good thing.

What do you think?

[noorman0]

Dubai is more crypto-friendly and a favorite country for businessmen and royalty. I've seen several large seminars on successful crypto projects there and some have partnered with Binance. Also, FTX has recently become a hot topic of public discussion that it will become a comparable Binance competitor. It is undeniable that these two platforms will be the first licensing targets when Dubai's regulatory institution start operating.

[YOSHIE]

Not sure if this has a positive or negative impact, as far as I know FTX was the first exchange to be licensed in Dubai and FTX is the exchange that has huge gains in crypto assets at the moment.

From my point of view if Binance has secured the operating license and official legislation from the Dubai government, it has not escaped the success and experience and example of FTX, I think Dubai is currently part of the Middle East country that has a freedom policy towards crypto, I'm sure that in the future after Binance and FTX get licenses, other exchanges will participate in that part.

With the technology that Dubai currently has, it is possible that in the future Dubai's people will conduct transactions with crypto, of course with the support of an exchange that already has a license there.

[NeuroticFish]

• we may see more institutional users who may rush to adopt cryptocurrencies in that region.
• I see that the competition between FTX and Binance has begun to increase, which is a good thing.

The competition is real and it was very visible already for quite some time.
But the more interesting point is about the institutional money. It could be an interesting entry point for petro dollars getting converted into bitcoin, but on the other hand I don't think that institutional investors from that area really needed locally licensed exchanges for that to happen, they could already very well buy internationally. So I would not expect a tremendous change in the numbers of investors from that area. Can clearly make their lives easier, but may not change much in the volumes.

[LeGaulois]

The competition is real and it was very visible already for quite some time.
But the more interesting point is about the institutional money. It could be an interesting entry point for petro dollars getting converted into bitcoin, but on the other hand I don't think that institutional investors from that area really needed locally licensed exchanges for that to happen, they could already very well buy internationally. So I would not expect a tremendous change in the numbers of investors from that area. Can clearly make their lives easier, but may not change much in the volumes.

They may be not interested to replace the petrodollars with Bitcoin. If they do like Saudi Arabia and China. They are working on oil contracts denominated in Yuan to free themselves from the excessive privilege of the dollar (Saudi Arabia is reportedly in talks with Beijing to accept yuan instead of dollars for some of its oil sales in China). And China is highly prospecting in this area of the world. They've signed several partnerships with different countries related to the oil industry.

The Gulf oil monarchies agreed to denominate their transactions in dollars in exchange for their security guaranteed by the USA. Nowadays with the geo-politic, who knows if the guarantee couldn't switch to China.

[NeuroticFish]

They may be not interested to replace the petrodollars with Bitcoin. If they do like Saudi Arabia and China. They are working on oil contracts denominated in Yuan to free themselves from the excessive privilege of the dollar (Saudi Arabia is reportedly in talks with Beijing to accept yuan instead of dollars for some of its oil sales in China). And China is highly prospecting in this area of the world. They've signed several partnerships with different countries related to the oil industry.

The Gulf oil monarchies agreed to denominate their transactions in dollars in exchange for their security guaranteed by the USA. Nowadays with the geo-politic, who knows if the guarantee couldn't switch to China.

Dollar, Yuan or Dirham, I am sure that if they want to invest, they do, no matter whether there's an exchange (or more) under their nose or not.
Just then I don't understand Binance and FTX move. Is it only for the miners from that area?!

[NotATether]

Just then I don't understand Binance and FTX move. Is it only for the miners from that area?!

I don't know about FTX but Binance has been kicked around by a whole lot of countries in recent years, so this could be an attempt to regain users which had been lost when they were banned in other countries.

[eaLiTy]

I don't know about FTX but Binance has been kicked around by a whole lot of countries in recent years, so this could be an attempt to regain users which had been lost when they were banned in other countries.

Dubai is changing its face and welcoming all the cryptocurrency projects and it is a good sign and we could see many cryptocurrency projects shifting over to Dubai as their head office and i personally know a couple of projects that moved completely to Dubai and the reception they are getting.
As part of the Expo, they are even conducted a Crypto Expo where 100s of crypto related companies participated in the event and it is not a big surprise that Dubai licensed Binance and FTX and expect more crypto related companies to shift over to Dubai as they will give all the facilities for these start ups.

[dansus021]

dubai is always become the crypto haven with this news it drive dubai can become crypto hub and as we can see that dubai host so many crypto show while other counytr try banning or kick the binance

[ajochems]

This two exchanges was good and 60 percentage of people having their trade volume in this one.After the Binance Smart chain launched,their was huge pump in the BNB.So if you want to know the next Ethereum,it was oblivious with BNB.FTX was growing coin and exchange,the transaction fee for the most of the crypto was 0 dollars fee in the FTX .It was unique charter of FTX.This two gonna rock the Dubai.

[jrrsparkles]

Dubai is in the most preference list of every investors even the old school investors who said cryptocurrency and bitcoin is scam may now change their statements. But how about the taxes? Still 0% tax for the cryptocurrency as well or it comes under different categories.

[coupable]

I agree with you that this is a positive step in the broadening of the adoption of digital assets. But there are only two vague points left for me:
1. Was the decision taken to include the Emirate of Dubai only, or as the capital of the state, meaning that the decision includes the rest of the Emirates?
2. The law talks about virtual assets, of which encrypted assets are one of them. I would like to understand what exactly virtual assets are covered by law.
On the other hand, we must wait for the position of the rest of the Gulf Cooperation Council countries, given their economic linkage with the UAE, and how things will unfold in the transactions between them.

[bocyaj]

I agree with you that this is a positive step in the broadening of the adoption of digital assets. But there are only two vague points left for me:
1. Was the decision taken to include the Emirate of Dubai only, or as the capital of the state, meaning that the decision includes the rest of the Emirates?
2. The law talks about virtual assets, of which encrypted assets are one of them. I would like to understand what exactly virtual assets are covered by law.
On the other hand, we must wait for the position of the rest of the Gulf Cooperation Council countries, given their economic linkage with the UAE, and how things will unfold in the transactions between them.

Ofcouse it’s a strong positive thing for the crypto currency.Because the more and more legalised will increase the flow of the crypto in the hands of investors.Now NFT users was increased due to bulk investment and bulk profit.But still some people had their belief on the cryptocurrency,mainly on the bitcoin.The people who become a millionaire using the bitcoin won’t forgot it.