The world’s largest cryptocurrency exchange, Binance, has achieved a major milestone by obtaining a license to operate in Dubai as a regulated platform. The license, issued by Dubai’s Virtual Assets Regulatory Authority (VARA), permits Binance FZE, the company’s Dubai subsidiary, to offer exchange and broker-dealer services for crypto assets. Initially, these services will be accessible to institutional and qualified retail investors.
In a recent blog post, Binance expressed pride in being the first exchange to receive an Operational Minimum Viable Product (MVP) license, underscoring the significance of the achievement and its commitment to building a compliant exchange in collaboration with local regulators.
This approval marks the latest in a series of regulatory steps taken by VARA. In 2022, the exchange was granted a provisional MVP license in March and a preparatory MVP license in September. With the upgrade to an Operational MVP License, eligible users in Dubai can access authorized services, including crypto-fiat conversion, adhering to the recommendations of the Financial Action Task Force (FATF).
Richard Teng, head of Regional Markets at Binance, emphasized the exchange’s dedication to ensuring secure and seamless customer migration, incorporating robust Know-Your-Customer and Customer-Due-Diligence measures as mandated by VARA.
The license’s issuance comes at a critical time for Binance, as it faces increased regulatory pressure in several jurisdictions, notably the United States, where lawsuits filed by securities and commodities commissions have posed challenges. Additionally, Binance has withdrawn from certain European markets or abandoned its license applications in response to regulatory complexities.
Binance’s successful acquisition of the Dubai license solidifies its foothold in the Middle East and demonstrates its ongoing efforts to navigate a compliant and regulated landscape while continuing to provide crypto services to a global audience.