financemagnates.com
When dark clouds gather over Binance in the USA and Europe, the sun begins to shine for the exchange in the Middle East. Binance FZE, the Dubai subsidiary of the crypto exchange, has been awarded an Operational Minimum Viable Product (MVP) license from Dubai's Virtual Asset Regulatory Authority (VARA).
This milestone represents a significant leap for the firm and its users, empowering it to offer virtual asset (VA) exchange and broker-dealer services to institutional and qualified retail investors in the emirate.
Binance Gains New License in Dubai
This latest advancement comes in the wake of VARA granting Binance a preparatory MVP license back in September 2022, which came with certain stipulations that the company had to fulfill to be eligible for full operations.
The shift to an operational MVP license signifies that eligible Binance FZE users can safely convert VA to fiat currency, adhering to Financial Action Task Force (FATF) compliant standards.
"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," Richard Teng, the Head of International Markets at Binance, highlighted the company's commitment towards ensuring a smooth transition for its customers.
#Binance FZE, our Dubai based subsidiary, is the world's first exchange to receive the Operational Minimum Viable Product licence in Dubai.
— Binance (@binance) July 31, 2023
Eligible users can now access regulated virtual asset services, such as fiat on and off ramp services via Binance FZE.
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Teng went on to emphasize Binance's priorities moving forward, including operating a fully regulated exchange in Dubai within a FATF-compliant ecosystem. This will pave the way for global scalability without compromising user assurance.
Dubai Wants to Become New Crypto Hub
Binance is not the only crypto company that has decided to launch its operations in the United Arab Emirates (UAE) and apply for local licenses. Previously, other major digital asset exchanges, including Bitget, ByBit and OKX, had announced a similar move.
In the face of regulatory challenges in Europe and the USA, the Middle East may become the main focus for the crypto industry. This is confirmed, among other things, by the latest move by Binance and the acquisition of another local license.
Alexander Chehade, the General Manager of Binance Dubai, confirmed that all users onboarding through this platform could anticipate access to a trusted and regulated service prioritizing security and compliance with highly specialized, tier 1 VA regulations under VARA.
The local market may have great potential in terms of the number of retail investors interested in trading. This is confirmed by data from the FX/CFD market, where the number of active traders is growing.