Binance has made history by becoming the first cryptocurrency exchange to be granted an Operational MVP Licence by the Virtual Assets Regulatory Authority (VARA) of Dubai. With the use of this licence, Binance will be able to provide regulated virtual asset exchange services in Dubai, demonstrating its dedication to compliance and cooperation with regional regulators.
Binance FZE, a subsidiary of Binance that is based in Dubai, has been given the Operational MVP Licence, which entitles the exchange to provide services such exchange and broker-dealer services that have been approved by VARA. Institutional investors in Dubai as well as qualified individual investors are the first groups to have access to these services.
After successfully obtaining a provisional MVP licence in March 2022 and a preliminary MVP licence in September 2022, Binance was granted this licence. The virtual asset exchange services and virtual asset broker-dealer services are now two licenced activities that Binance is authorised to do under VARA.
As a result of the transition from a Provisional MVP Licence to an Operational MVP Licence, qualified customers in Dubai can now use authorised services, such as the ability to securely convert virtual assets to fiat, in accordance with VARA-designated standards that are consistent with the Financial Action Task Force.
Binance’s Richard Teng, Head of Regional Markets, said, “We are honoured to be the first exchange to be granted an operational Minimum Viable Product Licence by VARA — the result of over a year of due diligence, collaboration, and consistent demonstration of responsible intent.”
Blockchain adoption in the UAE has spawned a thriving sector with security and innovation at its core. Binance’s success in obtaining this licence establishes a standard for fruitful cooperation in the quickly changing financial technology industry.
“With this operational MVP licence, all users onboarded through this platform can expect access to a trusted and regulated service that prioritises security alongside compliance with highly specific, tier-one virtual asset regulations under VARA,” said Alexander Chehade, Binance Dubai’s general manager.
Although Binance has been successful in Dubai, other nations have presented regulatory difficulties for the company. Upon receiving a denial from BaFin, Binance withdrew its licence application in Germany. Additionally, the exchange has abandoned licence applications in Cyprus, the Netherlands, and Austria.