Major cryptocurrency exchange Binance has reached another milestone in relationships with regulators in the United Arab Emirates by winning a new license in Dubai.
Binance’s Dubai-based subsidiary, Binance FZE, has obtained the Operational Minimum Viable Product (MVP) license from Dubai's Virtual Asset Regulatory Authority (VARA), the firm announced on July 31.
The new license officially allows Binance to operate two activities, including cryptocurrency exchange services and virtual asset broker-dealer services.
The services enabled by the license are currently limited to institutional and qualified retail investors in Dubai, Binance noted. Eligible investors in Dubai will now be able to access authorized services like crypto-to-fiat exchange compliant with the intergovernmental Financial Action Task Force (FATF).
“Institutions and residents that qualify to use the services provided by the Operational MVP License in Dubai can do so knowing they’re under investor protection and market assurance standards tailored specifically for the virtual asset sector,” Binance said in the announcement.
Operating within Dubai’s regulated ecosystem, Binance is committed to ensuring secure and seamless customer migration in compliance with Know-Your-Customer requirements, Binance’s head of regional markets Richard Teng said. He added:
“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.”
Binance’s latest regulatory milestone builds upon the progression from the provisional MVP license, issued by VARA in March 2022. Binance also obtained a preparatory MVP license in September 2022.
Related: UAE emerges as a pro-Bitcoin mining destination in the Middle East
Some crypto exchanges previously reported that the preparatory MVP license offers limited capabilities. The license only allows exchanges to service a “very restricted set of accredited investors,” Bybit CEO Ben Zhou told Cointelegraph in June.
Binance did not immediately respond to Cointelegraph’s request for comment.
The news comes soon after VARA in mid-July suspended the operational license of crypto exchanger BitOasis for not meeting mandated conditions within the timeframes set out by the authority. The firm subsequently said it was working with VARA on “fulfilling the remaining conditions.”
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Title: Binance to offer crypto broker-dealer services in Dubai with new license
Sourced From: cointelegraph.com/news/binance-wins-operational-crypto-license-in-dubai
Published Date: Mon, 31 Jul 2023 09:53:15 +0100
