Binance Obtains License for Crypto Broker-Dealer Services in Dubai, Expanding its Presence in the Region

Binance, one of the world’s leading cryptocurrency exchanges, has achieved yet another regulatory milestone in the United Arab Emirates (UAE) by obtaining a new license in Dubai.

On July 31, Binance’s Dubai-based subsidiary, Binance FZE, proudly announced that it has been granted an operational minimum viable product (MVP) license by Dubai’s Virtual Asset Regulatory Authority (VARA).

This new license authorizes Binance to provide cryptocurrency exchange and virtual asset broker-dealer services in Dubai. However, the permitted services are currently limited to institutional and qualified retail investors within the region. These eligible investors can now access authorized services, including crypto-to-fiat exchanges that adhere to the standards set by the intergovernmental Financial Action Task Force (FATF).

The announcement emphasizes that users availing Binance’s services under the operational MVP license can feel confident that they are operating within an investor protection and market assurance framework tailored specifically for the virtual asset sector.

Richard Teng, Binance’s head of regional markets, underlined the exchange’s commitment to ensuring a secure and seamless customer experience while complying with Know Your Customer (KYC) requirements. He expressed their priority to operate the first fully regulated exchange in and from Dubai, within a FATF-compliant ecosystem, laying the foundation for global scalability while upholding user assurance.

This recent regulatory success builds upon Binance’s previous achievements, including the provisional MVP license issued by VARA in March 2022 and the preparatory MVP license obtained in September 2022.

However, it’s worth noting that some crypto exchanges have found the preparatory MVP license to have limited capabilities. For instance, exchanges holding this license can only serve a very restricted set of accredited investors.

This development comes shortly after VARA suspended the operational license of another crypto exchange, BitOasis, for failing to meet the mandated conditions within the prescribed timeframes. BitOasis assured its users that it was collaborating with VARA to fulfill the remaining conditions as soon as possible.

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