Binance, the world’s largest crypto exchange by trading volume, recently announced that it had secured a license to operate in Dubai after meeting the conditions needed for the grant of an Operational Minimum Viable Product (MVP) license. The firm has emerged as the premier platform to secure the highly coveted accreditation from Dubai’s Virtual Asset Regulatory Authority (VARA).
Binance Is Blazing The Trail In The Cryptocurrency Ecosystem
Last year, Binance was granted a Provincial License by Dubai’s Virtual Assets Regulatory Authority (VARA), enabling it to establish domestic bank accounts to preserve clients’ funds, offer custody and payment services, and run a crypto exchange.
However, the newly acquired Operational MVP license allows the crypto exchange to legally conduct two more activities which are virtual asset broker-dealer services and virtual asset exchange services. Although these activities are only limited to qualified institutional and retail investors.
Obtaining the Operational MVP license is not only an outstanding milestone but evidence of Binance’s dedication to becoming a regulatory-compliant exchange platform. According to the firm, they are working with local regulators to ensure that their operations are designed to meet the country’s unique framework for Virtual Asset Service Providers (VASPs).
BNB price recovers to $243 | Source: BNBUSD on Tradingview.com
Improving Service Delivery and Ensuring Security
In recent years, the United Arab Emirates has emerged as the bastion of blockchain technology, building an ecosystem that allows innovation and security to thrive alongside the other. The pivot from Provisional to Operational MVP license will provide users in Dubai with improved access to services. Participants can now convert their virtual assets to fiat currency by following the guidelines laid down by VARA.
Institutions and individuals who are eligible for these services can utilize the market assurance standards and protections crafted especially for the virtual asset sector. According to Binance, the license signifies the creation of the first fully regulated exchange in Dubai after meeting the compliance requirements of FATF, thereby establishing the framework for unwavering user assurance and global growth.
The licensing procedure in Dubai is a four-stage process, and with the recent license granted to Binance, it means the platform has now cleared three of these stages. The only outstanding license is the Full Market Product (FMP), however; this is expected to be granted after the latest demonstration of compliance with all the rules of VARA.
This recent win comes as Binance prepares to re-enter Japan amidst regulatory challenges with the United States Securities and Exchange Commission this year.
Featured image from Financial Times, chart from Tradingview.com