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Binance FZE, the exchange’s Dubai-based subsidiary, has become the first exchange to receive an Operational Minimum Viable Product License in Dubai.
Binance, the world’s largest crypto exchange, has been awarded an Operational Minimum Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA). Binance FZE is the first cryptocurrency exchange in the world to receive such a license.
#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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Binance Granted Permission to Offer Broker-Dealer Services in Dubai
In a blog post, Binance announced the news today, saying that the license allows it to offer services in Dubai approved by VARA, including exchange and broker-dealer services. Binance said the services are currently limited to institutional and qualified retail investors.
The exchange secured a provisional MVP license in March 2022 and a preparatory MVP license in September 2022. The exchange’s progression from a Provisional License to an Operational License allows eligible users in the country “to access authorized services, including the ability to safely convert virtual assets to fiat under VARA-designated standards compliant with the intergovernmental Financial Action Task Force.”
Head of Regional Markets at Binance, Richard Teng, said:
“We are honored to be the first exchange to be granted an operational Minimum Viable Product License by VARA — a result of over a year of due diligence, collaboration, and consistent demonstration of responsible intent – that now allows us to be able to leverage the potential of a progressive regulatory framework, enabling innovation while furthering user protection.”
Adding,
“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. Our priority is to be able to operate this first fully regulated exchange in, and from Dubai, in a FATF-compliant ecosystem, setting the stage for global scalability with uncompromised user assurance.”
Binance Looks to UAE for Future Prospects
Last month, the exchange said it was considering a move to Dubai as it continues its struggles with the US SEC. Alex Chehade, Binance Dubai’s General Manager, said that the exchange believes the UAE is a prime destination for crypto businesses and applauds the region’s pro-crypto stance and policies.
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