Jamal Al-Farouq Binance, the world’s leading cryptocurrency exchange, has secured a license to operate in Dubai, thereby expanding its regulated platform services. This approval will empower Binance to deliver virtual asset exchange and other related services to institutional and proficient retail investors.
Dubai Virtual Assets Regulatory Authority Confers MVP License on Binance
On Monday, Binance revealed that its Dubai-based subsidiary, Binance FZE, has been awarded an Operational Minimum Viable Product (MVP) license by the Dubai Virtual Assets Regulatory Authority (VARA).
This license will authorize the crypto exchange to provide regulated services in Dubai, including exchange and broker-dealer services for crypto assets, initially catering to institutional and accredited retail investors, as stated by the firm.
In a blog post, Binance announced it is the first platform to acquire an MVP license, interpreting this as a “groundbreaking accomplishment” that echoes their “pledge to develop a compliant exchange in partnership with local regulators.”
This recent approval from VARA follows Binance’s previous provisional MVP license granted in March 2022 and a preparatory MVP license given in September of the same year, as mentioned in the announcement.
With the upgrade to an Operational MVP License, eligible Dubai users can access authorized services such as crypto-fiat conversions, in line with the recommendations of the Financial Action Task Force (FATF).
Binance’s Head of Regional Markets, Richard Teng, stated, “Operating within this regulated framework, we’re dedicated to guaranteeing a secure and smooth customer transition, incorporating rigorous Know-Your-Customer and Customer-Due-Diligence procedures as part of the strict onboarding remediation specified by VARA.”
The license in Dubai comes at a time when Binance is facing heightened scrutiny from regulatory bodies in various regions, including the United States where it’s contending with lawsuits brought by the securities and commodities commissions. In Europe, the crypto titan has withdrawn from several markets or rescinded its license applications.
As Binance shifts its focus to jurisdictions outside of Europe and America, what do you think lies ahead for the company? Share your insights in the comments below.
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Frequently Asked Questions (FAQs) about Binance Dubai License
What is the recent development with Binance in Dubai?
Binance, the world’s largest cryptocurrency exchange, has received a license to operate in Dubai as a regulated platform. This allows them to offer exchange and other services for virtual assets to institutional and qualified retail investors.
Who granted Binance this license?
Binance’s Dubai subsidiary, Binance FZE, has been issued an Operational Minimum Viable Product (MVP) license by Dubai’s Virtual Assets Regulatory Authority (VARA).
What does this license mean for Binance?
This license enables Binance to provide regulated services such as exchange and broker-dealer services for crypto assets, initially limited to institutional and qualified retail investors. It also represents a significant achievement for the company in its efforts to build a compliant exchange in collaboration with local regulators.
What does the Operational MVP License allow?
The Operational MVP License allows eligible users in Dubai to access authorized services, including crypto-fiat conversion, under standards that are compliant with the recommendations of the Financial Action Task Force (FATF).
Why is this license significant for Binance?
This authorization in Dubai is particularly important for Binance as it comes at a time when the company is under increased scrutiny from regulators in various other jurisdictions, including the United States and Europe, where it’s facing lawsuits and has had to withdraw from several markets or rescind its license applications.
