Binance has become the first crypto exchange to gain an operational license from Dubai’s Virtual Assets Regulatory Authority (VARA).
Dubai is one of the favored destinations for crypto enthusiasts and firms, with numerous high-profile Web3 conferences and meetups taking place in the region.
Binance FZE Customers Now Protected by Dubai Regulators
Binance FZE, the Dubai subsidiary of the world’s largest cryptocurrency exchange, announced that it has secured an Operational Minimum Viable Product (MVP) license from VARA. Hence, Binance can now operate as a virtual assets exchange service and virtual asset broker-dealer.
The exchange said:
“The progression from the Provisional License, granted in 2022, to an Operational MVP License, means eligible users in Dubai will now be able to access authorized services.”
As part of the regulatory process, VARA requires firms to pass through specific approval stages.
- The initial provisional approval
- The preparatory license
- The operational license
- The full market product license
Binance faced several challenges on its journey to acquire an operational license in Dubai. In February, VARA demanded that the firm provide more detailed information about its ownership, management, and auditing processes.
Certainly, the lack of global head offices and a conventional board of directors complicated the situation for the exchange.
Dubai’s Push to Become Crypto Hub
Without a doubt, Dubai has been putting up efforts to attract crypto firms and become a crypto hub. In March, BeInCrypto reported that the city had granted a preparatory license to the crypto exchange Crypto.com.
Read more about the best crypto exchanges for beginners here.
Along with attracting crypto firms, Dubai wants robust regulations and consumer protection. As a matter of fact, it will introduce rulebooks for crypto service providers, and providers could face penalties if they fail to comply with them.
In May, Dubai recommended a collaborative approach from regulators worldwide to deal with crypto crimes.
Binance’s acquisition of an operational license from VARA marks a significant milestone that benefits not only the exchange but also the broader cryptocurrency industry. This achievement underscores the increasing acceptance and regulation of digital assets in major financial hubs like Dubai.
The city demonstrates its commitment to fostering a sustainable and secure crypto ecosystem through its proactive approach towards crypto regulation and its call for global cooperation to combat crypto-related crimes.
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