Dubai Virtual Assets Regulatory Authority Grants Binance MVP License
Crypto exchange Binance has received an Operational Minimum Viable Product (MVP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). Here are the key points:
- Binance FZE, the Dubai subsidiary of Binance, has been granted an MVP license by VARA.
- The license allows Binance to offer regulated services in and from Dubai, including exchange and broker-dealer services for crypto assets.
- Initially, the services will be limited to institutional and qualified retail investors.
- Binance is the first exchange to secure an MVP license in Dubai.
- The license demonstrates Binance’s commitment to building a compliant exchange in collaboration with local regulators.
This regulatory approval comes after Binance was granted a provisional MVP license in March and a preparatory MVP license in September.
Operating Within a Regulated Ecosystem in Dubai
The upgrade to an Operational MVP License allows eligible users in Dubai to access authorized services, including crypto-fiat conversion, that comply with FATF recommendations. Richard Teng, head of Regional Markets at Binance, stated:
“Operating within this regulated ecosystem, we are committed to ensuring secure and seamless customer migration, with robust Know-Your-Customer and Customer-Due-Diligence as part of the rigorous onboarding remediation as stipulated by VARA.”
Pressure from Regulators in Other Jurisdictions
Binance’s authorization in Dubai comes as the exchange faces regulatory challenges in other countries:
- In the United States, Binance is fighting lawsuits filed by the securities and commodities commissions.
- In Europe, Binance has withdrawn from certain markets or canceled license applications.
Hot Take
The MVP license granted by Dubai’s VARA to Binance is a significant milestone for the exchange. It not only allows Binance to provide regulated services in Dubai but also showcases its commitment to compliance. While facing scrutiny in other jurisdictions, this approval highlights Binance’s willingness to collaborate with local regulators and operate within a regulated ecosystem.
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