Binance FZE, the Dubai-based subsidiary of the leading global blockchain services provider, has become the first exchange to receive the Operational Minimum Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA).
News of Binance obtaining the MVP license from VARA follows the Dubai-based regulatory authority’s issuance of a preparatory MVP License to Binance in September 2022. The previous preparatory license mandated specific conditions which Binance had to meet; in order to receive authorisation for operations.
Having successfully fulfilled the outlined requirements, Binance FZW can now operate two licensed activities: Virtual asset exchange services and virtual asset broker-dealer services – limited to institutional and qualified retail investors in Dubai.
Having secured the licence to operate within Dubai’s custom regulatory and legislative framework for virtual asset service providers (VASPs), this development highlights Binance FZE’s commitment to building a compliant exchange in collaboration with local regulators.
Alexander Chehade, general manager for Binance Dubai, discussed the significance of the licenses. Chehade said: “The last few years have cemented Dubai as a global virtual asset hub. We are excited to be a witness to that growth as we build on our operations here, with continued commitment to market and investor security.
“With this operational MVP licence, all users onboarded through this platform can expect access to a trusted and regulated service that prioritises security alongside compliance with highly specialised, tier 1 VA regulations under VARA.
“This milestone achievement is one step closer to providing even more users with access to our services and we are excited about the continued work in this space.”
Binance “leverage the potential of a progressive regulatory framework”
Richard Teng, head of international markets at Binance, also discussed the opportunity provided by the licenses. Teng explained: “The operational Minimum Viable Product Licence by VARA is a result of over a year of due diligence, collaboration, and consistent demonstration of responsible intent.
“It now enables to leverage the potential of a progressive regulatory framework, enabling innovation while furthering user protection. Operating within this regulated ecosystem, we are committed to ensuring secure and seamless customer migration, with robust Know-Your-Customer and Customer-Due-Diligence as part of the rigorous onboarding remediation, as stipulated by VARA.
“Our priority is to be able to operate this first fully regulated exchange in and from Dubai in a FATF-compliant ecosystem, setting the stage for global scalability with uncompromised user assurance.
“The UAE’s embrace of blockchain technology has created a thriving industry showcasing security and innovation are complementary assets at its core, and we believe its vision for this space will set precedents for the global industry. We are proud to be part of VARA’s virtual asset ecosystem, and we look forward to growing even more Web3 opportunities in line with the Dubai Government’s regulatory regime and guidance.”