Binance FZE achieves a significant milestone by obtaining the Operational MVP license from Dubai’s VARA.
The top global blockchain services provider’s Dubai-based subsidiary, Binance FZE, has become the first exchange to be granted an Operational Minimum Viable Product (MVP) license by Dubai’s Virtual Asset Regulatory Authority (VARA). News of Binance receiving the MVP license from VARA comes after the regulatory body in Dubai granted Binance a preliminary MVP License in September 2022. In order to gain authorization for operations, Binance had to satisfy a number of requirements imposed by the previous preparatory license.
Binance FZW is now authorized to carry out the two licensed activities of virtual asset exchange services and virtual asset broker-dealer services, which are only available to institutional and qualified retail investors in Dubai.
This accomplishment demonstrates Binance FZE’s dedication to creating a compliant exchange in partnership with local regulators by showing that the company has obtained the license to operate within Dubai’s unique regulatory and legislative framework for virtual asset service providers (VASPs).
General Manager of Binance Dubai, Alexander Chehade, spoke on the import of the licenses. The last few years have established Dubai as a major centre for virtual assets, according to Chehade. As we expand our operations here and maintain our commitment to investor and market stability, we are thrilled to watch this expansion.
All customers onboarded through this platform can anticipate access to a trusted and regulated service that prioritizes security in addition to compliance with highly specific, tier 1 VA regulations under VARA thanks to this operational MVP licence.
“We are excited about the ongoing work in this space and this milestone achievement is one step closer to providing even more users with access to our services.”
Binance says it will “leverage the potential of a progressive regulatory framework”
The possibilities made possible by the licenses was also mentioned by Binance’s head of foreign markets, Richard Teng. Teng said: “Over a year of diligence, teamwork, and persistent demonstration of responsible purpose resulted in the operating Minimum Viable Product Licence by VARA.
It is now possible to take advantage of the promise of a progressive regulatory environment, promoting user protection while permitting innovation. As part of the strict onboarding remediation required by VARA, we are committed to providing secure and seamless client migration while operating within this regulated ecosystem. This includes strong Know-Your-client and Customer-Due-Diligence measures.
“Our top aim is to be able to run this first fully regulated exchange in and out of Dubai in a FATF-compliant ecosystem, laying the groundwork for global scalability with unwavering user assurance.
The UAE’s use of blockchain technology has given rise to a vibrant sector that demonstrates how security and creativity are complimentary assets at its core. We believe the UAE’s ambition for this domain will set precedents for the worldwide industry. We are happy to be a part of the VARA ecosystem for virtual assets and look forward to expanding Web3 opportunities in accordance with Dubai Government regulations and guidelines.