Binance, the world’s largest crypto exchange, has been granted the first-ever operational digital assets license in Dubai, UAE. The exchange gave the announcement, highlighting that this pivotal moment marks a significant leap forward for the crypto space.
The announcement comes only a few weeks after BitOasis loses MVP License in Dubai over failure to comply with obligations within the time limit provided by the regulators.
Binance’s Partnership with VARA
The MVP license granted to Binance’s Dubai subsidiary, Binance FZE marks a historic moment in the crypto industry, as it becomes the first exchange to receive regulatory approval for its services in the UAE.
The license permits Dubai users to access regulated virtual asset services under Dubai’s Virtual Assets Regulatory Authority (VARA), ensuring investor protection and market assurance.
Under the purview of VARA, Binance FZE is allowed to offer exchange services, facilitating seamless crypto trading and investment for institutional investors. Furthermore, the license enables Binance to operate as a broker-dealer, opening up new opportunities for qualified retail investors to access the crypto market with greater confidence and protection.
A Progressive Licensing Journey
Binance’s pursuit of regulatory compliance in Dubai has been a meticulous journey, characterized by the gradual attainment of three key licenses over a span of months.
The provisional MVP license granted in March 2022 marked the beginning of Binance’s regulatory journey in Dubai. It allowed the exchange to engage in a limited scope of activities, setting the groundwork for further development and compliance.
Subsequently, in September 2022, Binance received the preparatory MVP license, signifying a significant step forward in the regulatory approval process.
The operational MVP license, being the latest addition to Binance’s portfolio of licenses in Dubai, represents the ultimate confirmation of the exchange’s dedication to adhering to VARA’s guidelines.
A Step Towards Greater Accessibility
As the UAE continues to foster its blockchain industry, Binance’s role as a trusted exchange aligns with the government’s efforts to build a secure and innovative virtual asset ecosystem. This partnership lays the groundwork for further growth and exploration of Web3 opportunities in Dubai and beyond.
Amid the regulatory challenges in other countries, Binance now views Dubai as a global crypto hub and a home to scale its services for institutions, retail investors, and the global virtual asset community.