Binance has obtained a license for its Minimum Viable Product (MVP) from Dubai’s Virtual Asset Regulatory Authority (VARA) as a result of its provisional license issuance in March 2022.
In order to operate in Dubai within its internationally benchmarked legislative framework for virtual asset service providers (VASPs), Binance has been granted an MVP license through which it will be able to offer a range of approved virtual asset services to appropriately qualified retail and institutional investors.
Targeted Regulations Toward Adoption
This first-of-its-kind regulatory license guarantees Binance’s commitment to strong investor and market protection principles and allows it to cater to a wide range of clients who have been approved by VARA, allowing them to use local banking channels unlocked by this first-of-its-kind regulatory license.
Trading on a regulated platform will increase the level of consumer protection that users will experience by trading on a platform that is supervised by the Dubai-based VARA.
As a result of the transition from a Provisional License to an MVP License, Binance is now able to open a client money account with a local bank and offer a range of virtual asset exchange services, virtual asset conversion, virtual asset transfer, virtual asset custody, and management services.
The Dubai Virtual Asset Regulation Law (DVARL) was passed in March 2022. It has become the first law of its kind in the world to regulate virtual assets in a regulated manner. The aim of VARA is to develop an advanced legal framework to protect investors in the virtual assets industry and to establish international standards so that the Emirate is able to achieve responsible economic growth through this industry.
Alexander Chehade, Binance Dubai General Manager, noted:
“Our registration in Dubai is a reflection of the country’s progressive stance on blockchain technology and its willingness to embrace this sector through collaboration. We look forward to a continued partnership as we build upon our team and operations in Dubai to roll out additional services, including local banking capabilities and enhanced products.”
It is important to note that the issuance of this license marks the culmination of a number of registrations Binance has obtained for its local entities in the MENA region as well as in Italy, France, and Spain in Europe.
Furthermore, it proves Binance’s commitment to being a regulation-led platform with robust compliance and security controls that serve to protect consumers and ensure market integrity, as it is a platform that has been built with consumer protection in mind.
