Key takeaways

  • Binance is the first exchange in the world to obtain an operational MVP license from the Dubai Virtual Assets Regulatory Authority (VARA).

  • Eligible users will now be able to access virtual asset services regulated in Dubai under VARA’s investor protection and market assurance standards.

  • This is a major achievement, which reinforces Binance's desire to create a compliant exchange by collaborating with local regulatory authorities.

The Dubai Virtual Asset Regulatory Authority has granted Binance an operational MVP (minimum viable product) license, which authorizes the company to provide virtual asset exchange services.

We are pleased to announce that our Dubai subsidiary, Binance FZE, has become the first exchange to obtain the Minimum Viable Product (MVP) license from the Dubai Virtual Asset Regulatory Authority (VARA).

The Operational MVP License authorizes Binance to provide VARA-approved services, including exchange and broker-dealer services, in Dubai, primarily to qualified institutional and retail investors.

Always at the forefront

Obtaining this operational MVP license follows the issuance of a provisional MVP license in March 2022, and a preparatory MVP license in September 2022.

Through this gesture, VARA authorizes Binance to carry out two activities: virtual asset exchange services and broker-dealer services relating to virtual assets. Only qualified institutional and individual investors established in Dubai will be able to benefit from these services.

This crucial step reinforces our desire to create a compliant exchange by collaborating with local regulators and respecting Dubai's unique regulatory framework for virtual asset service providers (VASP).

Secure and regulated services

By moving from a provisional license granted in 2022 to an operational MVP license, Binance will now be able to offer its authorized services to eligible users in Dubai, including the secure conversion of virtual assets into fiat currency in accordance with VARA standards and in compliance with the rules of the intergovernmental Financial Action Task Force.

Institutions and residents authorized to use the services covered by the MVP license operational in Dubai are protected by investor protection and market assurance standards specifically designed for the virtual assets sector, standards whose compliance is made mandatory by VARA for all licensees providing regulated virtual asset services in Dubai.

Richard Teng, Head of Regional Markets at Binance, said: “We are honored to be the first exchange to obtain an operational minimum viable product license from VARA. This achievement is the result of more than a year of in-depth audits, collaboration and continued proof of our responsible intentions, and it now allows us to leverage the full potential of a progressive regulatory framework, fostering innovation while further protecting users.

Within this regulated ecosystem, we are committed to ensuring secure and smooth customer migration through efficient KYC and customer due diligence processes in line with strict onboarding measures under VARA. Our priority is operating this first fully regulated exchange in and for Dubai within a FATF-compliant ecosystem, to set the stage for global scalability while protecting users without compromise. »

A future marked by growth

The UAE's adoption of blockchain technology has given rise to a thriving sector, with security and innovation as complementary core resources.

We have no doubt that this country's vision for this new sector will set precedents globally, and we are very proud to be part of the VARA virtual asset ecosystem and lead by example by integrating its regulatory framework. We look forward to creating even more opportunities within Web3 in compliance with the regulatory regime and Dubai government guidelines.

Alexander Chehade, Managing Director of Binance Dubai, said: “Dubai has truly established itself as a global virtual asset hub over the past few years. We are pleased to witness this growth and to continue developing our activities in Dubai, while renewing our commitment to market and investor security.

This operational MVP license allows all users of the platform to access a reliable and regulated service, which prioritizes security and compliance with highly specialized level one virtual asset regulations determined by VARA. This milestone achievement brings us one step closer to our goal of opening up access to our services to more users, and we are excited to see the progress being made in the industry. »

Conclusion

Binance's regulatory journey in Dubai marks the start of a new era in the evolution of virtual asset services, not only in the UAE, but across the world. VARA’s granting of an operational MVP license to Binance is an important step towards a future where virtual asset services are regulated, secure and customer-focused.

Binance's receipt of this new license demonstrates its commitment to working hand-in-hand with regulatory authorities to set a precedent for positive collaboration in a rapidly changing technological and financial environment.

As we venture deeper and deeper into this space, we look forward to the developments in security, innovation and scalability promised by this major victory to institutions, retail investors and the global community of virtual asset users.

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