Binance’s affiliate in Dubai, Binance FZE, becomes the first cryptocurrency trading platform to receive an Operational MVP license from VARA, enabling them to offer services in Dubai.
Key Points
- Binance FZE obtains an Operational MVP license from VARA, becoming the first crypto platform to do so in Dubai.
- The license allows Binance to offer exchange and broker-dealer services to institutional and qualified retail investors.
- Dubai’s crypto-friendly policies and 0% tax regime have attracted numerous crypto companies and investors to the city.
- Binance completes three out of four licensing stages in Dubai, aiming to establish the first fully regulated exchange in the city.
Binance’s affiliate in Dubai, Binance FZE, has recently obtained an Operational Minimum Viable Product (MVP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).
This makes Binance the first cryptocurrency trading platform to receive such a license in Dubai, allowing the company to offer exchange and broker-dealer services. However, these services are currently limited to institutional and qualified retail investors.
JUST IN: 🇦🇪 #Binance approved to offer #bitcoin and crypto services to institutional investors in Dubai pic.twitter.com/qXmSs4jCoW
— Bitcoin Magazine (@BitcoinMagazine) July 31, 2023
Expansion of Binance in Dubai
Under the VARA regulations, eligible users in Dubai can access authorized services like converting digital assets to fiat, following the Intergovernmental Financial Action Task Force (FATF) compliant standards.
Richard Teng, Binance’s Head of Regional Markets, expressed that their priority is to establish the first fully regulated exchange in Dubai, aligning with the FATF regulations while focusing on global scalability.
Teng stated, “We are honored to be the first exchange to be granted an operational Minimum Viable Product License by VARA…that now allows us to leverage the potential of a progressive regulatory framework, enabling innovation while furthering user protection.”
Before this latest development, Binance had already obtained a provisional MVP license in March 2022, followed by a preparatory MVP license five months later.
With the acquisition of the Operational MVP license, Binance has completed three out of the four stages of the licensing process in Dubai. The final phase requires the company to obtain a Full Market Product (FMP) license, after which they can serve mass retail investors.
Dubai: A Crypto Hotbed
Dubai has recently become a prominent hub for cryptocurrency activities due to its strategic policies. The establishment of VARA has played a significant role in clarifying regulations for various crypto firms impacted by the United States’ regulatory approach. While the city has prohibited involvement with privacy-centric coins, it has welcomed several crypto exchanges like OKX and Bybit.
According to a study conducted by Recap, Dubai is home to nearly 800 crypto-based companies as of January 2023. This vast number provides residents with numerous career opportunities in the crypto sector. Additionally, Dubai’s 0% tax regime makes it an attractive destination for crypto investors.
Closing Thoughts
In conclusion, Binance FZE’s acquisition of the Operational MVP license from VARA marks a significant milestone for the company’s expansion in Dubai.
Being the first cryptocurrency trading platform to receive such a license in the city, Binance can now offer exchange and broker-dealer services to institutional and qualified retail investors. Dubai’s crypto-friendly environment and regulatory clarity have established it as a thriving hub for cryptocurrency activities.
