blockchainreporter.net
Binance, the world’s largest cryptocurrency exchange by trade volume, has attained a significant milestone in its international expansion. The exchange was granted an Operational Minimum Viable Product (MVP) license in Dubai, expanding its global regulatory footprint.
The approval will enable Binance FZE, the Dubai subsidiary of the exchange, to provide virtual asset exchange services within the country. Initially, the services will be available to institutional and accredited retail investors, presenting a considerable advancement in the crypto exchange’s expansion strategy.
Expanding Binance’s Reach In Dubai
Binance’s recent achievement is a culmination of strategic efforts that began in early 2022. The license awarded today follows the acquisition of a provisional MVP license in March 2022 and a preparatory MVP license in September 2022.
With these regulatory permissions, eligible investors in Dubai can now tap into authorized services with enhanced investor protection and market assurance standards designed exclusively for the virtual asset sector.
The news has been met with positivity from Binance’s team. Richard Teng, Head of Regional Markets of Binance, stated, “We are honored to be the first exchange to be granted an operational Minimum Viable Product License by VARA. Our priority is 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’s Regulatory Challenges in Other Jurisdictions
However, the achievement in Dubai arrives amid a backdrop of increasing regulatory scrutiny in other international markets. Just last week, Binance withdrew an application for a license from the German financial regulator, BaFin.
The cryptocurrency exchange’s Australian office was subjected to a search by local regulators in July, as part of an ongoing investigation. Moreover, in the U.S., the exchange finds itself contending with allegations from multiple regulatory bodies.
Both the Commodities Futures Trading Commission and the Securities and Exchange Commission have brought lawsuits against the exchange and its founder, Changpeng Zhao, for alleged violations of securities laws.