Binance, through its subsidiary, Binance FZE, has successfully acquired an Operational Minimum Viable Product licence from Dubai’s Virtual Assets Regulatory Authority (VARA).
In a blog post on July 31, 2023, the exchange announced that VARA had granted it the necessary authorization to provide virtual asset exchange services and virtual asset broker-dealer services in the region.
The exchange will initially cater to institutional and qualified retail investors while adhering to VARA’s investor protection and market assurance standards.
This milestone is a momentous occasion for Binance, as it becomes the world’s first exchange to secure an Operational MVP license from VARA.
Richard Teng, Head of Regional Markets at Binance, stated:
“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.”
Teng emphasized the new license empowers Binance to leverage a progressive regulatory framework that fosters innovation while ensuring robust user protection. The company pledges to maintain a secure and seamless customer experience by implementing stringent Know-Your-Customer and Customer-Due-Diligence processes mandated by VARA.
Binance’s journey to acquire this operating license began in March 2022 when it obtained a provisional MVP licence. It also obtained a preparatory MVP licence in September of the same year.
Alexander Chehade, Binance Dubai’s General Manager, expressed excitement over Dubai’s growth as a global virtual asset hub. He affirmed the exchange’s commitment to market and investor security while looking forward to extending its services to an even larger user base.
Chehade added that reaching this significant milestone brings them one step closer to extending access to their services to an even larger user base.
Despite its success in Dubai, Binance faces challenges in European markets. On July 26, 2023, the exchange withdrew its cryptocurrency licence application in Germany. The move followed allegations that the German Federal Financial Supervisory Authority (BaFin) had rejected their custody licence application.
However, Binance clarified that the withdrawal was voluntary and that they plan to reapply for the license. A spokesperson from the exchange stated Binance remains determined to align with the latest regulatory developments and secure a successful application.
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