Binance has conquered Dubai, obtaining its operational MVP license directly from the Virtual Assets Regulatory Authority (VARA). With this license, Binance is the first virtual asset exchange to comply with local regulation.
Binance conquers Dubai and obtains license as first virtual asset exchange
Popular crypto-exchange Binance has conquered Dubai, obtaining an MVP license as the first regulated virtual asset exchange. Here is the announcement on Twitter:
#Binance FZE, our Dubai based subsidiary, is the world’s first exchange to receive the Operational Minimum Viable Product licence in Dubai.
Eligible users can now access regulated virtual asset services, such as fiat on and off ramp services via Binance FZE.
More here
— Binance (@binance) July 31, 2023
In essence, the Virtual Assets Regulatory Authority (VARA) in Dubai has granted the crypto-exchange a license called “Operational Minimum Viable Product (MVP),” making it eligible to operate virtual asset exchange services.
Specifically, there will be exchange and broker-dealer services, initially to qualified institutional and retail investors.
This milestone comes after an interim MVP license obtained by Binance in March 2022 and a preparatory MVP license in September 2022.
Binance FZE is the new branch in Dubai
According to reports, the transition from the Provisional License, granted in 2022, to the Operational MVP License means that eligible users in Dubai will now be able to access authorized services.
Also included is the ability to securely convert virtual assets to fiat according to standards defined by VARA and compliant with the intergovernmental Financial Action Task Force.
In this regard, Richard Teng, head of regional markets at Binance, commented as follows:
“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.”
He added:
“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.”
The withdrawal of the application in Germany
While Binance conquers Dubai, it recently had to withdraw its application for a crypto custody operator license in Germany.
In this case, its motivation was to focus on the broader goal of MiCA compliance.
Indeed, last month, the German regulator BaFin had already rejected Binance’s application, and from there, the crypto-exchange decided to aim for the larger goal.
Not surprisingly, Binance has also dropped out of the markets of Austria, Belgium, the Netherlands and Cyprus.