Binance Secures First Operational MVP License from Dubai's VARA
Jessie A Ellis Jul 31, 2023 08:00
Binance has become the first to receive an Operational MVP License from Dubai's Virtual Assets Regulatory Authority (VARA), enabling regulated virtual asset services.
Binance has achieved a milestone by becoming the first crypto exchange to receive an Operational MVP License from Dubai's Virtual Assets Regulatory Authority (VARA). This license enables Binance to offer regulated virtual asset exchange services in Dubai, affirming its commitment to compliance and collaboration with local regulators.
The Operational MVP License was granted to Binance's Dubai subsidiary, Binance FZE, and allows the exchange to offer services approved by VARA, including exchange and broker-dealer services. These services are initially available to institutional and qualified retail investors in Dubai.
The issuance of this license follows Binance's successful attainment of a provisional MVP license in March 2022 and a preparatory MVP license in September 2022. VARA has now permitted Binance to operate two licensed activities: virtual asset exchange services and virtual asset broker-dealer services.
The progression from the Provisional License to an Operational MVP License means eligible users in Dubai can now access authorized services, including the ability to safely convert virtual assets to fiat, under VARA-designated standards compliant with the Financial Action Task Force.
Richard Teng, Head of Regional Markets at Binance, commented, “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."
The UAE's embrace of blockchain technology has created a thriving industry with security and innovation at its core. Binance's achievement in securing this license sets a precedent for positive collaboration in the rapidly-evolving financial technology landscape.
Alexander Chehade, Binance Dubai’s General Manager, noted, “With this operational MVP license, all users onboarded through this platform can expect access to a trusted and regulated service that prioritizes security alongside compliance with highly specialized, tier-one virtual asset regulations under VARA."
While Binance has achieved success in Dubai, it has faced regulatory challenges in other countries. Binance withdrew its license application in Germany after BaFin denied the application. The exchange has also withdrawn license applications in Austria, the Netherlands, and Cyprus.
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