Key Insights
- Binance FZE obtains a license from Dubai’s Virtual Assets Regulatory Authority to provide exchange and broker-dealer services in Dubai.
- The Operational MVP license allows Binance FZE to offer services to retail and institutional investors in Dubai, including secure conversion of digital assets to fiat.
- Binance’s achievement comes amidst challenges with regulators in the US and Europe, where the exchange faced legal actions and withdrew licenses in certain countries.
Binance FZE, a subsidiary of the world’s largest cryptocurrency exchange in Dubai, has received a license from the Virtual Assets Regulatory Authority (VARA) to provide exchange and broker-dealer services in Dubai.
The Operational Minimum Viable Product (MVP) license will allow Binance FZE to offer services to both retail and institutional investors in Dubai. The MVP license also ensures that qualified Binance FZE users have access to a range of services, including the ability to securely convert digital assets to fiat.
We are honored to be the first exchange to receive an MVP license from VARA – the result of over a year of rigorous review, collaboration and commitment, said Richard Teng, Head of Global Markets at Binance.
Alexander Chehade, General Manager of Binance Dubai, highlighted Dubai’s importance as a global digital asset hub, expressing his excitement about expanding its operations in the region.
This milestone achievement is another step towards bringing even more users to our services, and we are excited to continue working in this direction, he concluded.
Read also! How Binance Is Trying to Outwit EU Regulators and Break into the UK Market
Mandatory licensing of crypto companies in Dubai
In February, the Dubai authorities unveiled updated regulations for crypto companies, according to which they must obtain permission and appropriate licenses to operate in the region. In addition, some rules relate to specific activities such as issuance, advisory services, storage, and exchange services.
Since then, all activities of crypto firms have come under the supervision of VARA. At that time, several crypto companies announced that they had received VARA approval; however, in January, a UAE MP stated at the 2023 World Economic Forum that no company has licenses from the supervisory authority.
Binance expands amid global challenges
The news of obtaining a license from the Dubai regulator came amid Binance’s problems in the US and several European countries. In particular, last month the US Securities and Exchange Commission (SEC) filed 13 charges against the platform and its founder.
In particular, the exchange withdrew the license in Cyprus without explanation. Then the company announced that they were leaving the Dutch market. There, the exchange was unable to obtain a virtual asset service provider (VASP) license from the local regulator and curtailed operations. The exchange also revoked its license to provide services in Germany.
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[…] yesterday, Binance announced its receipt of the operational minimum viable product (MVP) license from VARA, bringing it a step […]