Binance Obtains Dubai License to Provide Crypto Exchange Services – Binance, the world’s largest cryptocurrency exchange, has been granted a license to operate as a regulated platform in Dubai. With this authorization, Binance can now offer exchange and other services for virtual assets to both institutional and qualified retail investors.
On Monday, Binance made an announcement stating that its Dubai subsidiary, Binance FZE, has obtained an Operational Minimum Viable Product (MVP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). This license empowers the platform to provide regulated services within and from Dubai, including exchange and broker-dealer services for crypto assets.
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Initially, these services will be limited to institutional and qualified retail investors, as explained by the company. Binance highlighted in a blog post that it has become the first exchange to obtain an MVP license, characterizing this development as a significant milestone that reinforces its dedication to establishing a compliant exchange in cooperation with local regulators.
According to the announcement, the most recent regulatory approval for Binance in Dubai follows the provisional MVP license granted by VARA in March 2022 and the preparatory MVP license issued in September of the same year, as stated by the cryptocurrency company. The upgrade to an Operational MVP License will enable eligible users in Dubai to access authorized services, including crypto-fiat conversion, following the compliance standards recommended by the Financial Action Task Force (FATF).
“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,” said Richard Teng, head of Regional Markets at Binance.
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The authorization in Dubai, UAE, comes amidst mounting regulatory scrutiny in various other jurisdictions. Binance is facing increased pressure from regulators, including the United States, where it is contending with lawsuits filed by the securities and commodities commissions. Additionally, the crypto giant has withdrawn from several European markets or retracted its license applications there.