Binance FZE, the Dubai affiliate of the global crypto trading giant Binance, has achieved a significant milestone by obtaining an Operational Minimum Viable Product (MVP) license from the Virtual Assets Regulatory Authority (VARA). This makes Binance the first cryptocurrency trading platform to receive Dubai’s Operational MVP license, paving the way for offering exchange and broker-dealer services in the region.
The license comes with certain limitations as Binance is currently permitted to serve only institutional and qualified retail investors. Eligible users in Dubai can access authorized services, including converting digital assets to fiat, adhering to VARA-designated standards that comply with the guidelines set by the Intergovernmental Financial Action Task Force (FATF).
Richard Teng, the Head of Regional Markets at Binance, expressed the company’s commitment to operating the first fully regulated exchange in the city while maintaining compliance with the FATF. Teng stated, “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.”
This achievement follows Binance’s prior milestones in the licensing procedure. In March 2022, the company obtained a provisional MVP license, followed by a preparatory MVP license five months later. With the successful acquisition of the Operational MVP license, Binance has completed three out of four stages in Dubai’s licensing process.
The final phase of the procedure involves obtaining a Full Market Product (FMP) license, which would allow Binance to cater its services to mass retail investors. Until then, the company will continue its operations within the current regulatory framework, aiming for global scalability while prioritizing user protection.
Dubai Emerges as Crypto Zone with VARA Driving the Way
Dubai, in recent years, has emerged as a thriving hub for cryptocurrency activity, bolstered by its strategic policies and the establishment of VARA (Virtual Assets Regulatory Authority). This regulatory milestone has proven instrumental in providing much-needed clarity to various crypto firms that were previously uncertain due to the US’s regulatory approach to the industry.
Despite imposing restrictions on privacy-centric coins under the new regulatory regime, Dubai has warmly embraced several cryptocurrency exchanges, including major players like OKX and Bybit, among others.
According to a recent study published by Recap, Dubai is now home to nearly 800 crypto-based companies as of January 2023, offering residents a plethora of opportunities to explore career options in the crypto sector. Furthermore, the city’s attractive 0% tax regime has cemented its position as a favorable destination for crypto investors looking to capitalize on the digital asset market.
Dubai’s rapid ascent in the crypto space showcases its commitment to fostering innovation and creating an ecosystem conducive to the growth of virtual assets. As more companies and investors flock to this burgeoning hub, the emirate’s influence on the global crypto landscape is expected to continue expanding.