Binance, the world’s largest cryptocurrency exchange by trading volume, has been granted an Operational Minimum Viable Product (MVP) license by the Virtual Assets Regulatory Authority (VARA) in Dubai. This makes Binance the first crypto exchange to receive an operational license from VARA.
VARA issued the license to Binance’s Dubai-based subsidiary, Binance FZE, enabling the exchange to provide limited virtual asset services in Dubai. This includes exchange and broker-dealer services for institutional and qualified retail investors.
The operational MVP license comes after Binance obtained provisional and preparatory MVP licenses from VARA in 2022. With the latest license upgrade, Binance can now offer regulated crypto exchange and brokerage services in Dubai under VARA’s oversight.
New Milestone for Binance and Crypto Regulation
The operational MVP license is a landmark achievement for Binance and for cryptocurrency regulation globally. It represents one of the first instances of a major crypto exchange receiving an operational license from a financial regulator.
Binance will now be able to provide regulated exchange and broker-dealer services for digital assets in Dubai. This includes enabling customers to safely convert between virtual assets and fiat currency.
The move shows Binance’s commitment to building a compliant exchange and working collaboratively with financial regulators. Dubai has emerged as a global crypto hub, with its regulatory framework attracting crypto businesses.
Regulated Services for Qualified Investors
Under the license, Binance will offer services to institutional investors and qualified retail investors in Dubai. These customers will access regulated virtual asset services compliant with anti-money laundering standards set by the Financial Action Task Force (FATF).
Binance noted its rigorous onboarding process for customers, including Know-Your-Customer and customer due diligence procedures. This ensures only verified users can access the regulated services.
The regulated ecosystem will provide users protection and assurance when conducting virtual asset activities through Binance in Dubai. This aims to promote secure and seamless migration of crypto services to the regulated environment.
Expanding Crypto Innovation Under Regulatory Guidance
Binance said the operational license will allow it to leverage Dubai’s progressive regulatory framework for virtual asset providers. This enables innovation in the crypto sector while upholding strong consumer protections.
As the first fully regulated exchange in Dubai, Binance is positioned to scale its services globally based on learnings from the UAE regulatory environment. Binance said it looks forward to expanding Web3 opportunities aligned with Dubai’s crypto guidance.
The exchange highlighted the achievement as an important step in providing regulated and secure virtual asset services to more users globally. Binance will continue collaborating with regulators as the crypto industry evolves.
Dubai Emerges as Global Crypto Leader
Binance noted that Dubai’s approach to regulating crypto has established it as a leader in the industry. The government has created a thriving crypto ecosystem focused on both innovation and security.
Binance securing the operational license exemplifies positive collaboration between regulators and crypto businesses. It sets a precedent for exchanges looking to offer compliant services.
The milestone promises increased security, innovation, and accessibility of virtual assets for users under Dubai’s specialized crypto regulations. Binance said this development marks a key evolution in regulated crypto services worldwide.
Overall, Binance obtaining the operational MVP license represents a major accomplishment for crypto regulation in Dubai. As the first exchange to receive the license, Binance has achieved a new standard for regulatory compliance and collaboration.