In a significant move, Binance, one of the world’s leading cryptocurrency exchanges, has obtained a new license in Dubai, allowing it to offer crypto services to institutional and qualified retail investors. Binance’s Dubai-based subsidiary, Binance FZE, has been granted the Operational Minimum Viable Product (MVP) license by Dubai’s Virtual Asset Regulatory Authority (VARA).
The newly acquired license authorizes Binance to provide two key services: cryptocurrency exchange and virtual asset broker-dealer services. However, at this stage, these services are limited to institutional and qualified retail investors in Dubai. These investors will have access to authorized services, including a crypto-to-fiat exchange that complies with the intergovernmental Financial Action Task Force (FATF) guidelines.
Binance emphasizes that investors in Dubai can use these services with confidence, knowing they are protected under specific investor protection and market assurance standards tailored for the virtual asset sector. Operating within Dubai’s regulated ecosystem, Binance pledges to ensure secure and seamless customer migration while adhering to Know-Your-Customer (KYC) requirements.
Richard Teng, Binance’s head of regional markets, expressed the company’s commitment to becoming the first fully regulated exchange in Dubai and operating within a FATF-compliant ecosystem. This achievement sets the stage for global scalability while providing users with uncompromised assurance.
This latest regulatory milestone for Binance builds upon its previous achievements, including obtaining provisional MVP and preparatory MVP licenses from VARA in March and September 2022, respectively. With the new license in place, Binance continues to strengthen its presence in the Middle East, a region that is increasingly becoming pro-crypto.
It’s worth noting that not all crypto exchanges in the region have been granted the same level of operational capabilities. For instance, the preparatory MVP license, given to some exchanges, restricts their services to a limited set of accredited investors. Nonetheless, Binance’s latest accomplishment further solidifies its position as a prominent player in the Middle Eastern crypto landscape.
As the crypto industry continues to evolve, regulatory compliance and investor protection remain key considerations. The news of Binance’s expanded services in Dubai comes in the wake of the suspension of BitOasis’ operational license by VARA. BitOasis is currently working with the regulatory authority to meet the required conditions and resume its services.
Binance’s proactive approach to regulatory compliance and its ongoing efforts to work within established frameworks underscore the exchange’s commitment to providing a secure and reputable platform for crypto traders and investors worldwide.
