Binance, the world’s largest cryptocurrency exchange by trading volume, has been awarded a virtual asset license, allowing it to use Dubai’s ‘test-adapt-scale’ virtual asset market model as a springboard for regional development.
Binance is the second virtual asset exchange to be granted a fully regulated license to provide regulated cryptocurrency trading to sophisticated investors. While Crypto exchange FTX became the first cryptocurrency exchange for getting a license to operate in the emirate.
How this licence will help binance?
Binance will be able to open an office in Dubai and provide digital asset exchange services to pre-qualified investors and financial institutions under the regulatory standards under the Dubai virtual asset provider (VASP) license.
Dubai is one of the seven emirates that make up the United Arab Emirates. With a new virtual asset exchange (VAX) license introduced in the emirate’s special economic zone, Binance now handles 22 VASPs.
On March 15, the crypto exchange announced that it has obtained a license to operate in Bahrain, another Gulf country. It will allow Bahraini clients to trade, custody, and manage their portfolios on the world’s largest exchange by volume.
What are the virtual assets included in this license?
The Dubai Financial Services Authority (DFSA) produced a 56-page proposal that focuses on “crypto tokens” but excludes non-fungible tokens (NFTs), central bank digital currencies (CBDCs), and utility tokens.
How will it benefit Dubai?
Helal Saeed Almarri, director-general of the Dubai World Trade Centre Authority, which houses VARA, said “The new VARA is symbolic of Dubai’s confidence in the potential of this future economy driver – if introduced with prudence and legitimacy.” To that end, our system is designed to encourage cooperation, promote innovation, and, most importantly, protect the public interest. Binance’s inclusion in the VARA reflects its support to the Dubai plan: “to give the global industry the assurance of governance, enabled by shared industry responsibility and societal, legislative security.”
