Binance, the world’s leading cryptocurrency exchange, has announced that it has become the first exchange to secure an operational Minimum Viable Product (MVP) license in Dubai. This license, granted by the Dubai Multi Commodities Centre (DMCC), allows Binance to offer crypto trading and custody services to customers in the region.
The DMCC is a government entity established in 2002 to enhance commodity trade flows through Dubai. It is home to over 18,000 companies, ranging from multinational corporations to start-ups. The DMCC has been actively promoting the development of the crypto ecosystem in Dubai, launching a Crypto Centre in May 2021 to provide a comprehensive platform for businesses and individuals to access crypto-related services.
Dubai Multi Commodities Centre (DMCC) is the leading free zone in the Middle East for trade, enterprise and commodities. Established in 2002, DMCC offers a range of benefits and incentives to its members, including 100% foreign ownership, 0% personal and corporate income tax, full repatriation of capital and profits, and access to world-class infrastructure and services.
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DMCC is home to over 19,000 companies from various sectors and industries, such as precious metals, diamonds, pearls, tea, coffee, spices, agro, energy, technology, healthcare, education and more. DMCC also hosts the Dubai Diamond Exchange, the Dubai Gold and Commodities Exchange, the Dubai Pearl Exchange, the DMCC Tea Centre and the DMCC Coffee Centre.
DMCC is committed to fostering innovation, sustainability and growth in the commodities sector, as well as supporting the vision of Dubai as a global hub for trade and commerce. DMCC has received several awards and accolades for its excellence in service delivery, governance and regulation, such as the Global Free Zone of the Year by the Financial Times’ fDi Magazine for seven consecutive years.
Binance’s MVP license is a significant milestone for the exchange, as it demonstrates its commitment to comply with the local regulations and standards. Binance will leverage its global expertise and resources to offer a secure, reliable and innovative crypto platform for its customers in Dubai and beyond.
Binance CEO Changpeng Zhao (CZ) said: “We are honored to receive the MVP license from the DMCC, which is a testament to our efforts to foster a more inclusive and accessible crypto industry. Dubai is a global hub for trade, innovation and entrepreneurship, and we are excited to be part of its vibrant crypto community. We look forward to working closely with the DMCC and other stakeholders to advance the adoption of crypto assets and blockchain technology in the region and beyond.”
DMCC Executive Chairman and CEO Ahmed Bin Sulayem said: “We are delighted to welcome Binance as the first exchange to secure an operational MVP license in Dubai. Binance is a global leader in the crypto space, and we are confident that their presence in the DMCC will contribute to the growth and development of the crypto ecosystem in Dubai. The DMCC Crypto Centre is designed to provide a comprehensive platform for crypto businesses and investors, and we are committed to supporting innovation and excellence in this sector.”
If you are looking for a dynamic and diverse environment to start or expand your business, DMCC is the ideal choice for you. You can benefit from the unparalleled network of opportunities, connections and resources that DMCC offers.
Kyrgyzstan Expands Bitcoin Mining with Government Backing at Hydro Power Plant
Bitcoin mining is a process that consumes a lot of electricity and generates a lot of heat. Therefore, finding a cheap and reliable source of energy is crucial for the profitability and sustainability of this activity. In Kyrgyzstan, a Central Asian country with abundant hydroelectric resources, the government has decided to support the development of Bitcoin mining by providing access to low-cost electricity from a state-owned hydro power plant.
The Kyrgyz government has signed a memorandum of understanding (MoU) with BitRiver, a Russian company that operates one of the largest Bitcoin mining facilities in Siberia. The MoU grants BitRiver the right to use up to 300 megawatts (MW) of electricity from the Toktogul hydro power plant, which has a total capacity of 1,200 MW and is the largest in the country.
The MoU also stipulates that BitRiver will invest in the construction of a data center near the power plant, which will host the mining equipment and provide services to local and international clients. The data center is expected to be operational by the end of 2022 and will create hundreds of jobs in the region.
The Kyrgyz government hopes that this initiative will boost the country’s economy, which has been hit hard by the Covid-19 pandemic and political instability. The country’s gross domestic product (GDP) contracted by 8% in 2020, according to the World Bank. The government also sees Bitcoin mining as a way to diversify its energy exports, which currently rely heavily on selling electricity to neighboring countries.
BitRiver’s CEO Igor Runets said that Kyrgyzstan is an attractive destination for Bitcoin mining because of its low electricity prices, which are among the lowest in the world. He also praised the government’s openness and willingness to cooperate with the crypto industry.
“Kyrgyzstan is one of the few countries in the region with a surplus of electricity generation. The country has great potential to become one of the key Bitcoin mining hubs in Central Asia,” Runets said.
Kyrgyzstan is not the only country in the region that is exploring the potential of Bitcoin mining. Kazakhstan, another former Soviet republic with abundant natural resources, has also seen a surge in crypto mining activity in recent years. According to Cambridge University’s Bitcoin Electricity Consumption Index, Kazakhstan ranks fourth in the world in terms of Bitcoin mining share, behind China, the US and Russia.
However, Bitcoin mining also has significant environmental impacts that need to be considered. Bitcoin mining is estimated to be responsible for 0.1% of world greenhouse gas emissions, according to Wikipedia. Bitcoin mining generates air pollution caused by coal-fired electricity generation, as well as e-waste due to the short life expectancy of bitcoin-mining equipment. A single Bitcoin transaction is estimated to burn 2,292.5 kilowatt hours of electricity, enough to power a typical US household for over 78 days, according to Investopedia.
While Kyrgyzstan’s hydro power plant may offer a cleaner source of energy than fossil fuels, it is not without its drawbacks. Hydro power plants can disrupt natural ecosystems, affect water quality and quantity, and displace local communities. Moreover, hydro power plants are vulnerable to climate change, which can affect their water supply and output.
Therefore, it is important to weigh the economic benefits of Bitcoin mining against its environmental costs, and to explore ways to reduce its carbon footprint. Some possible solutions include switching to renewable energy sources, improving energy efficiency, adopting alternative consensus mechanisms, such as proof-of-stake or proof-of-authority, that do not require intensive computation, and implementing carbon taxes or offsets.