- Binance’s acquisition of a full virtual-asset services provider (VASP) license in Dubai highlights the company’s commitment to regulatory compliance and innovation.
- CEO Richard Teng’s statement emphasizes the importance of advancing the financial landscape through compliance and innovation, reflecting Binance’s dedication to operating within regulatory frameworks while driving innovation in the crypto space.
Binance, the leading global cryptocurrency exchange by trading volume, has been granted a full virtual-asset services provider (VASP) license by Dubai’s Virtual Assets Regulatory Authority (VARA). This marks the completion of the fourth and final stage in Dubai’s regulatory approval process, following almost a year after the exchange had secured a third-stage license.
The new full license upgrades Binance’s existing minimum viable product license awarded in mid-2023 and signifies a major milestone for the company. Binance CEO Richard Teng commented on the achievement, emphasizing the exchange’s “unwavering commitment to advancing the financial landscape through compliance and innovation.” Teng noted that the new license represents the company’s dedication to transparency, regulatory compliance, and responsible growth within the dynamic realm of digital assets.
Binance’s local unit, Binance FZE, obtained an Operational MVP license in mid-2023, which allowed it to cater to institutional and qualified investors while providing broker-dealer services and engaging in virtual-asset derivatives trading.
Binance FZE General Manager Alex Chehade highlighted that the full VASP license reinforces Dubai’s status as a forward-thinking city, acknowledging and embracing the financial potential that blockchain technology brings.
One of the conditions for the license, according to sources cited by Bloomberg, required Binance co-founder and former CEO Changpeng “CZ” Zhao to relinquish his voting control with the local unit. Zhao is currently in the U.S. awaiting sentencing after settling charges with the Department of Justice in November. His sentencing is expected on April 30.
Neither Binance nor VARA had responded to a request for comment about these conditions by the time of publication.
A Step Forward in Dubai’s Crypto Landscape
Binance’s acquisition of a full crypto services license in Dubai marks a significant step in the city’s journey to establish itself as a global hub for digital assets. By granting Binance this license, Dubai showcases its openness to embracing blockchain technology and the crypto industry, while emphasizing the importance of regulatory compliance and transparency. This development is poised to drive further growth and innovation in the digital assets domain, bolstering the emirate’s reputation as a forward-thinking city in the financial world.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
