“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.”
Binance has announced it has secured an Operational MVP License from Dubai’s Virtual Assets Regulatory Authority (VARA) in a significant milestone for the crypto exchange operator.
Users who qualify will now be able to access regulated virtual asset services in Dubai under VARA’s investor protection and market assurance standards.
Europe, United States, and Australia regulators snubbing Binance
“This landmark development underscores our dedication to building a compliant exchange in partnership with local regulators and within Dubai’s unique regulatory framework for Virtual Asset Service Providers (VASPs)”, said Binance, which has been under regulatory fire from many jurisdictions in recent months.
Last week, FinanceFeeds covered Binance’s exit from Germany after being denied a license from the country’s financial watchdog, BaFin. The French regulators are also investigating the firm’s operations. Last month, Binance decided to cancel its plans to establish a subsidiary in Austria and closed its operations in the Netherlands.
Australia was not too friendly with the world’s largest crypto ecosystem as Binance Australia’s offices were raided by ASIC officials and the entity allegedly received 24 hours’ notice prior to debanking.
In late March, CFTC Commissioner Kristin Johnson pointed fingers at Binance for allegedly helping users evade control. The company is struggling to find banking partners in the United States.
In the meantime, Binance plans to launch operations in Japan in August.
Binance is licensed as a crypto exchange and a crypto broker in Dubai
Dubai’s Virtual Assets Regulatory Authority has issued Binance with an Operational Minimum Viable Product (MVP) license to operate virtual asset exchange services.
“We are pleased to announce that our Dubai subsidiary, Binance FZE, has become the first exchange to receive the Operational Minimum Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA). The Operational MVP license enables Binance to offer services in Dubai approved by VARA, including exchange and broker-dealer services — initially to institutional and qualified retail investors”, said the official announcement.
Dubai’s VARA has now permitted Binance to operate two licensed activities: virtual asset exchange services and virtual asset broker-dealer services, limited to institutional and qualified retail investors in Dubai.
Richard Teng, Head of Regional Markets at Binance, commented: “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.
“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.”
Alexander Chehade, Binance Dubai’s General Manager, noted: “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, with continued commitment to market and investor security. With this operational MVP license, all users onboarded through this platform can expect access to a trusted and regulated service that prioritizes security alongside compliance with highly specialized, tier-one virtual asset regulations under VARA. This milestone achievement is one step closer to providing even more users with access to our services and we are excited about the continued work in this space.”