April 19, 2024
Latest Cryptocurrency News

Binance FZE Wins Approval for Virtual Asset Broker-Dealer Operations in Dubai

Cryptocurrency exchange Binance has achieved another significant milestone in its relationship with regulators in the United Arab Emirates (UAE) by obtaining a new license in Dubai.

The license has been granted to Binance FZE, the exchange’s Dubai-based subsidiary, by Dubai’s Virtual Asset Regulatory Authority (VARA), as announced on July 31. This newly acquired license permits Binance to provide cryptocurrency exchange and virtual asset broker-dealer services.

However, it’s important to note that the current services enabled by this license are limited to institutional and qualified retail investors in Dubai. Eligible investors in the region can now access authorized services such as crypto-to-fiat exchanges that adhere to the Financial Action Task Force (FATF) guidelines.

Binance emphasized the significance of this development, stating that investors and institutions using the services provided by the Operational MVP License in Dubai can be assured of investor protection and market standards tailored specifically for the virtual asset sector.

Richard Teng, Binance’s head of regional markets, expressed the exchange’s commitment to operating within Dubai’s regulated ecosystem, ensuring a secure and seamless customer experience while complying with Know Your Customer (KYC) requirements. He further highlighted the goal of operating the first fully regulated exchange from Dubai, creating a FATF-compliant ecosystem, and paving the way for “global scalability with uncompromised user assurance.”

This recent regulatory achievement builds on Binance’s progression from the provisional MVP license issued by VARA in March 2022, followed by a preparatory MVP license obtained in September 2022. It should be noted that some crypto exchanges have previously pointed out that the preparatory MVP license offers limited capabilities, restricting services to a small group of accredited investors.

The announcement of Binance’s new license comes shortly after VAR suspended the operational license of another crypto exchange, BitOasis, due to non-compliance with the mandated conditions within the specified timeframes. BitOasis subsequently stated its commitment to working with VARA to “fulfill the remaining conditions.”

Image by wirestock on Freepik

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