Binance FZE, the Dubai-based subsidiary of the world’s largest cryptocurrency exchange, has been granted a licence by the emirate’s Virtual Assets Regulatory Authority (VARA) to provide exchange and broker-dealer services in Dubai.
The operational minimum viable product (MVP) licence will enable Binance FZE to offer services to both retail and institutional investors from its Dubai office.
This operational MVP licence will also ensure that qualified Binance FZE users have access to authorised services, including the ability to safely convert virtual assets to fiat while complying with strong Financial Action Task Force-compliant standards, providing heightened investor protection and market assurance standards customised for the virtual asset sector.
“We are honoured to be the first exchange to be granted an operational MVP licence by VARA – a result of over a year of due diligence, collaboration and demonstration of responsible intent – that now allows us be able to leverage the potential of a progressive regulatory framework, enabling innovation while furthering user protection,” Richard Teng, Head of International Markets at Binance, said.
VARA safeguards investors with MVP licence
VARA is established under the Dubai Virtual Asset Regulation Law, aiming to create a robust legal framework to safeguard investors and promote responsible business growth in the virtual asset industry.
Alexander Chehade, Binance Dubai’s general manager, emphasised Dubai’s position as a global virtual asset hub, expressing excitement about building on their operations in the city.
“The last few years have cemented Dubai as a global virtual asset hub, and we are excited to be a witness to that growth as we build on our operations here,” Chehade said.
The news comes amid a challenging period for the global cryptocurrency sector, which recently emerged from a “crypto winter” marked by the collapse of several major platforms.
The approval of Binance FZE’s operational licence by VARA represents a significant development for the industry.
Despite the growth in the cryptocurrency market, regulatory scrutiny has been increasing, with authorities in the US charging Binance with securities law breaches and misuse of customer funds.
In response, Binance has acknowledged gaps in its compliance with US regulations and indicated its willingness to settle investigations with fines.