The company’s subsidiary in Dubai, Binance FZE, has become the first cryptocurrency exchange to be granted an operating Minimum Viable Product (MVP) licence in the area. The exchange can now provide regulated virtual asset services in Dubai, according to their official blog.
Following two earlier approved applications, the most recent MVP license has been approved. Binance obtained a preliminary MVP licence in September 2022 and a provisional MVP licence in March 2022. Virtual Asset Regulatory Authority (VARA) of Dubai has just granted Binance permission to carry out two licenced activities. Services for virtual asset exchanges and broker-dealers are the first and second, respectively. The services, however, are restricted to approved institutional and retail investors in Dubai.
Additionally, Dubai’s eligible users can now access authorized services thanks to the change from a Provisional Licence to an Operational MVP Licence. Additionally, these services enable customers to convert virtual assets to fiat in a secure manner while adhering to VARA-established criteria.
The licence clearance is “the result of over a year of due diligence, collaboration, and consistent demonstration of responsible intent,” claims Richard Teng, Head of Regional Markets at Binance.
Additionally, Teng stated that it was “priority to be able to operate this first fully regulated exchange in, and from Dubai, in a FATF-compliant ecosystem.”
Future of Binance in Dubai
According to Alexander Chehade, Binance Dubai’s General Manager, “The last few years have cemented Dubai as a global virtual asset hub.” The Middle Eastern region has made several policies to ease the entry of crypto-related businesses. Several top firms in the industry have moved their bases to the UAE.
The blog noted that “Binance’s regulatory journey in Dubai marks an epoch in the evolution of virtual asset services, not just within the UAE, but globally.”
Binance is under intense regulatory scrutiny in the US and Europe despite making progress in Dubai. After withdrawing from the Netherlands and Cyprus, the exchange most recently dropped its German application. The company is presently concentrating on submitting an application for an EU MiCA crypto registration, which will enable it to reenter the European market.
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are suing the exchange in the US for allegedly breaking financial regulations.