by Lipika Deka
Binance, the world’s leading crypto exchange, has been issued the Minimal Viable Product [MVP] license from Dubai’s Virtual Asset Regulatory Authority [VARA], per local reports. Bahamas-based FTX subsidiary FTZ was the first recipient of the MVP VASP license back in July 2022.
The MVP license allows Binance to operate inside Dubai’s legal framework for virtual asset service providers [VASPs], providing a range of virtual asset-related services to appropriately qualified institutional and retail investors.
The permit would also facilitate the blockchain services provider to open a client money account with a domestic bank and provide the following services.
Customers can now take advantage of the local banking channels made available by this first-of-its-kind regulatory licensing as Binance will serve a clientele certified by VARA. Trading on a regulated platform under the direction of VARA in Dubai will also provide users with higher levels of consumer protection.
The license is a big achievement that comes after several registrations for Binance’s local branches across Europe in Italy, France, and Spain as well as in the MENA area.
Welcoming the move, Changpeng Zhao a.k.a CZ, founder, and CEO of Binance, stated that this registration is an acknowledgment of its compliance and safety processes in the new regulatory framework and would work closely with industry peers to develop consistent implementation standards.
Recently the top exchange teamed up with a UAE-based company formation and business support services provider Virtuzone, encouraging new entrepreneurs to set up businesses in the nation using cryptocurrencies.
Binance Adds Another UAE Entity Into Its Payment Getaway
After incorporating Binance Pay into its payment gateway, Virtuzone joined the list of well-known entities like JA Resorts & Hotels and Majid Al Futtaim to accept cryptocurrency, in the west Asian nation.
Binance‘s ties to the Gulf nation have become stronger lately as the UAE attempts to position itself as the world’s newest center for digital assets and creates rules.
Last December, the world’s largest crypto exchange by trading volume, announced that it was considering Dubai for its potential headquarters and hired over 100 positions in the United Arab Emirates, its regional head then said.
Dubai, one of the seven emirates in the UAE, established the Virtual Asset Regulatory Authority in March and published the first law governing digital assets [VARA].
Besides Binance, it issued licenses to fellow global powerhouse FTX Europe, and businesses like crypto.com are opening offices there.