Green light for Binance to provide cryptocurrency services in Dubai
The virtual asset regulatory authority in Dubai, known as VARA (1), has granted the cryptocurrency exchange Binance an MVP license (2), allowing it to provide various virtual asset services to accredited retail and institutional investors.
Following this development, the company was permitted to open an office in the United Arab Emirates and to provide digital exchange services to financial institutions and pre-qualified investors under the terms of the provisional license issued in March.
Dubai’s VARA, created in March 2022, is in charge of licensing and supervising virtual asset providers in the emirate and its free zone regions. Local authorities have also approved a regional headquarters for FTX and a provisional license for CryptoCom (3).
With this new authorization, Binance will be able to provide various services linked to virtual assets to qualified retail and institutional investors following the established regulatory framework for VASPs.
With this new functionality, Binance (4) will also be able to access local banking systems and offer services such as open money accounts, asset transfers, virtual currency to fiat currency conversions, custody and management, token sales, and trading platforms.
All of Binance’s moves point to the exchange’s ambitions to increase its footprint in the Middle East region. In March, it also secured a license to operate in Bahrain to provide cryptocurrency services like custody, trading, and portfolio management.
“They believe there exists a great possibility to engage with industry peers to build consistent implementation standards around the world as of Dubai,”
said Binance founder and CEO Changpeng Zhao (5).