Binance was the first among crypto exchanges to receive a license from the Dubai regulator
Date: 2023-07-31 Author: Karina Ziganova Categories: BUSINESS
Binance FZE, a subsidiary of the world's largest cryptocurrency exchange in Dubai, has received a license from the Virtual Asset Regulatory Authority (VARA) to provide exchange and broker-dealer services in Dubai.
The Operating 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 into fiat.
"We are honored to be the first exchange to receive VARA's MVP license – the result of more than a year of rigorous verification, collaboration, and demonstration of responsible intent," said Richard Teng, Head of International Markets at Binance.
Alexander Chehadé, General Manager of Binance Dubai, highlighted Dubai's importance as a global hub for digital assets, expressing excitement about expanding its operations in the region.
"This landmark achievement is another step towards providing even more users with access to our services, and we are pleased to continue working in this direction," he concluded.
Compulsory licensing of crypto companies
In February, 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, consultancy, storage and exchange services.
Since then, all activities of crypto firms have come under the supervision of VARA. Back then, several crypto companies claimed to have received VARA approval; however, in January, at the World Economic Forum 2023, an MP from the UAE stated that no company had licenses from the supervisory authority.
A difficult period for Binance
The news of obtaining a license from the Dubai regulator comes amid Binance's problems in the United States and several European countries. In particular, last month, the US Securities and Exchange Commission (SEC) brought 13 charges against the platform and its founder.
In particular, the exchange revoked 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 its activities. The exchange also revoked its license to provide services in Germany.
