The move is a part of the Dubai government’s efforts to create new economic sectors.

The Government of Dubai on Monday designated the Dubai World Trade Centre (DWTC) as a comprehensive zone and regulator for virtual assets and crypto including digital assets, products, operators and exchanges. Seen as one of the most crypto-friendly administrations the world over, the Dubai government is looking to create new economic sectors, and sees digital assets as “progressive.” (Government of Dubai)

The Government said this was an effort to further develop Dubai virtual assets and markets, including the creation of a framework for innovative financial products, and adopting new trends that rely on advanced underlying blockchain technology, such as non-fungible token (NFT) and cryptocurrencies.

In September, the Dubai World Trade Centre Authority (DWTCA) had signed an agreement with the UAE’s Securities and Commodities Authority (SCA) for the regulation, offering, issuance, listing and trading of crypto assets and related financial activities within DWTCA’s free zone. While the SCA is a regulatory body with oversight of the UAE’s financial markets, the DWTCA is an economic free zone.

Collaboration with private sector: Binance

In its Monday announcement the Government said the Dubai World Trade Centre will collaborate with the private sector and relevant entities in Dubai to create an attractive environment for the sector, and enforce rigorous standards for investor protection, Anti Money Laundering (AML), Combating the Financing of Terrorism (CFT) compliance and cross border deal flow tracing.

Cryptocurrency exchange Binance today announced that it has signed a cooperation agreement with Dubai World Trade Centre Authority (DWTCA), helping advance Dubai’s commitment to establishing a new international virtual asset ecosystem.

“Together, we share a vision for helping Dubai embrace the new future economy that includes crypto and blockchain,” said Changpeng Zhao, founder and CEO of Binance.

Binance also said it aims to share its experience in collaborating with global regulators to aid the development of progressive virtual asset regulations. With that, it intends 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.

Related Story: UAE Greenlights Crypto Trading In Dubai World Trade Centre Free Zone

Image of The Dubai World Trade Centre (DWTC), historically called Sheikh Rashid Tower: Govt of Dubai