Binance, the world’s largest cryptocurrency exchange has been granted a license to operate in Dubai, the United Arab Emirates. The crypto giant made this known in an announcement on July 31. Per the update, Binance is now the first exchange in the world to get an Operational MVP License from VARA – Dubai’s Virtual Assets Regulatory Authority.
Binance gets the operational license after fulfilling the pre-conditions since it received a preparatory license in September 2022. The license allowed the crypto exchange to open a bank account in the city to hold users’ funds, operate a cryptocurrency exchange, and offer payments and custody services.
With the Operational Minimum Viable Product license, users can now access virtual asset services on Binance including fiat on-ramp and off-ramp services. Furthermore, Binance can now offer exchange and broker-dealer services.
Binance operational license in Dubai
By issuing the license, VARA has given Binance FZE (Binance’s Dubai subsidiary) permission to operate a virtual asset exchange service and virtual asset broker-dealer services which are limited to qualified institutional and individual investors in Dubai.
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“This landmark development underscores our dedication to building a compliant exchange in partnership with local regulators and within Dubai’s unique regulatory framework for Virtual Asset Service Providers (VASPs),” the announcement said.
Recall that in March 2022, Binance FZE received a provisional MVP license and then got a preparatory MVP license in September 2022. The transition from the Provisional License to an Operational MVP License underscores Binance’s compliance with the local regulatory framework for Virtual Asset Service Providers (VASPs).
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In addition, users in Dubai can now safely convert virtual assets to fiat under VARA standards in compliance with the Intergovernmental Financial Action Task Force.
“Institutions and residents that qualify to use the services provided by the Operational MVP License in Dubai can do so knowing they’re under investor protection and market assurance standards tailored specifically for the virtual asset sector, and required by VARA for any licensees to provide regulated virtual asset services in Dubai,” Binance said.
Dubai, a global virtual asset hub
The UAE has embraced web3 and blockchain technology to create a booming industry. In fact, Binance looks to Dubai as a global virtual asset hub because of its crypto-friendly regulations.
“The last few years have cemented Dubai as a global virtual asset hub and we are excited to be a witness to that growth as we build on our operations here, with a continued commitment to the market and investor security,” Binance Dubai’s General Manager, Alexander Chehade said.
Finally, licensing in Dubai has a four-stage process and Binane has successfully passed three of those stages. The final stage is the license for a Full Market Product (FMP) which will only be issued when compliance with all the rules is demonstrated.
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Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.