Binance, a major cryptocurrency exchange, has achieved a significant regulatory milestone in its relationship with authorities in the United Arab Emirates (UAE) by obtaining a new license in Dubai.
The license was granted to Binance’s Dubai-based subsidiary, Binance FZE, by Dubai’s Virtual Asset Regulatory Authority (VARA) on July 31.
With this operational minimum viable product (MVP) license, Binance is now officially permitted to offer cryptocurrency exchange and virtual asset broker-dealer services in Dubai.
However, the services allowed by the license are currently limited to institutional and qualified retail investors within Dubai.
Eligible investors in the region can access authorized services, including crypto-to-fiat exchanges that comply with the guidelines set by the intergovernmental Financial Action Task Force (FATF).
To become a user of Binance in Dubai, an investor must hold the status of a “qualified retail client” and meet specific criteria.
This includes being at least 21 years old and having a net liquid asset value of 500,000 United Arab Emirates dirhams ($136,000), supported by relevant documentation such as bank statements and proof of funds.
Qualified investors also need to provide valid identification documents like passports, visas, and proof of a valid UAE address with contact details.
Binance’s Dubai entity can now offer a range of services, including crypto-to-fiat exchange and conversions, transfers and custody, brokerage, and virtual asset payments and remittance services.
This latest regulatory achievement for Binance builds upon the progression from the provisional MVP license issued by VARA in March 2022, as well as the preparatory MVP license obtained in September 2022.
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In April 2023, VARA requested more information from Binance about its business requirements, aiming to enhance regulatory standards in Dubai.
Binance complied with the request and expressed its willingness to cooperate further with VARA as they prepare for the next phase of licensing.
It’s worth noting that the preparatory MVP license previously granted by VARA only allowed exchanges to serve a restricted set of accredited investors.
This limitation was highlighted by some crypto exchanges, such as Bybit, earlier this year.
The news of Binance’s new license comes shortly after VAR suspended the operational license of another crypto exchange, BitOasis, for not meeting regulatory conditions within specified timeframes.
BitOasis is currently working with VARA to fulfill the remaining conditions.
Binance emphasized that VARA’s framework includes compulsory rulebooks related to general operations, compliance, and market conduct requirements.
Key highlights of these regulations were published by VARA in 2023.
As Binance moves forward with its operations in Dubai, it will continue to comply with the regulatory standards set by the UAE authorities.
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