Main conclusions

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

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

  • This milestone underscores Binance's commitment to building a compliant cryptocurrency exchange in cooperation with local regulators.

The Dubai Virtual Assets Regulatory Authority has issued an operating license to Binance for a Minimum  Producer (MVP) to conduct virtual asset exchange services.

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

The operational MVP license enables Binance to offer VARA-certified services in Dubai, including brokerage and exchange services – to institutional and qualified retail investors for a start.

Explore new horizons

The issuance of the operational MVP license follows Binance's successful acquisition of a provisional MVP license in March 2022 and an introductory MVP license in September 2022.

Having done so, VARA has now allowed Binance to operate two licensed activities: Virtual Asset Exchange Services and Virtual Asset Trading Broker Services, limited to qualified individual and institutional investors in Dubai.

This historic development underscores our keenness to build a compliant digital currency trading platform in partnership with local regulators and within Dubai’s unique regulatory framework for Virtual Asset Service Providers (VASPs).

Safe and organized services

The progression from a temporary licence, granted in 2022, to an operational MVP licence, means that eligible users in Dubai will now be able to access authorized services, including the ability to securely convert virtual assets into approved local currency according to criteria set by VARA and compliant with international FATF standards.

Institutions and residents eligible to use the services provided under an operational MVP license in Dubai can do so knowing that they are subject to the investor protection and market assurance standards tailored specifically to the virtual assets sector, which VARA requires for any licensees to offer regulated virtual asset services in Dubai.

Richard Teng, Head of Regional Markets at Binance (Binance) commented: “We are honored to be the first exchange to receive an MVP license from VARA - the result of over a year of commitment to standards, collaboration and continuous proof of accountability - which now allows us to be able to leverage the potential of the framework.” Advanced regulatory framework enabling innovation while enhancing user protection.

“Working within this regulated ecosystem, we are committed to ensuring a safe and seamless customer transition, through a robust KYC system and customer due diligence as part of the stringent internal reform as set out by VARA. Our priority is to be able to operate the first platform “Fully regulated in and out of Dubai, in a FATF compliant ecosystem, paving the way for global scalability without compromising user safeguards.”

Looking Forward: The Future of Growth

The UAE’s adoption of blockchain technology has created a thriving industry with security and innovation as complementary assets at its core.

We believe that her vision for this field will create proactive achievements for the industry at the global level. We are proud to be part of VARA's virtual assets ecosystem and to be leading the way within its regulatory framework. We look forward to increasing Web 3 opportunities in line with Dubai Government regulations and directives.

“The past few years have strengthened Dubai’s position as a global virtual asset hub and we are excited to be a witness to this growth as we build our operations here, with a continued commitment to market and investor protection,” noted Alexander Shehadeh, Managing Director of Binance Dubai.

“With this operational MVP license, all users on this platform can expect to receive a reliable and regulated service that prioritizes security along with compliance with highly specialized Tier 1 virtual asset regulations under VARA. This milestone is one step closer to providing more users with We have access to our services and are excited about continued work in this area.”

Concluding thoughts

Binance's regulatory journey in Dubai represents an era in the development of virtual asset services, not only within the UAE, but globally. VARA’s issuance of an operational MVP license to Binance represents an important step towards the future of regulated, secure and client-focused virtual asset services.

Binance's achievement in obtaining the latest license is a testament to its dedication to working alongside regulators, setting a precedent for positive cooperation in this rapidly evolving fintech landscape.

As we move deeper into this space it is exciting to anticipate the increased security, innovation and scalability that this landmark development promises for institutions, individual investors and the global virtual asset community.

  • Licenses, registrations and other legal matters

  • Binance has obtained a virtual asset service provider license in Spain

  • Gulf Binance has obtained licenses to operate digital assets in Thailand