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Binance announced on Monday it has secured an operational license in Dubai, becoming the first cryptocurrency exchange to do so. The milestone comes several months after Dubai’s crypto regulator Virtual Assets Regulatory Authority (VARA), unveiled a set of requirements crypto firms must comply with to offer services in the emirate.
Binance Completes 3 of 4 Licensing Stages in Dubai
Binance obtained an operational license from Dubai’s digital assets regulator, marking the emirate’s first crypto exchange to acquire the operational Minimal Viable Product (MVP) permit. With this, qualified users can now access regulated virtual asset trading services in Dubai under VARA’s user protection and market assurance regulations.
The move comes after Binance acquired a provisional MVP license from VARA in March 2022, followed by a preparatory MVP license in September 2022. Now, the world’s largest crypto exchange has won the operational MVP license, allowing the company to offer virtual asset exchange services and broker-dealer services to institutional and qualified retail investors in Dubai.
“The Operational MVP license enables Binance to offer services in Dubai approved by VARA, including exchange and broker-dealer services — initially to institutional and qualified retail investors.”
– Binance explained in the blog post.
Digital asset exchanges who wish to operate in Dubai must complete a four-stage licensing process. Binance has completed three of those stages, with obtaining the Full Market Product (FMP) license representing the final step. Binance is expected to secure the FMP permit after complying with all the regulations.
Binance’s Departures in Europe and Japan Comeback
Becoming the first virtual asset exchange to win an operational license in Dubai represents the latest in Binance’s recent status changes across various global markets.
Notably, the leading crypto trading service provider departed from several markets in the past few months, including Cyprus, Netherlands, and Canada, which it left due to new regulatory guidelines. Moreover, Binance also canceled its UK registration, though the decision will not impact the company’s operations as it has never conducted any business there.
More recently, Binance CEO Changpeng Zhao said last week that the exchange plans to launch its services in Japan in August. The long-awaited comeback into Japan comes several months after Binance acquired the regulated local crypto exchange Sakura Exchange Bitcoin.
Do you think Dubai could be one of the leading crypto and digital asset hubs in the region, given its recent efforts to regulate the industry? Let us know in the comments below.