Dubai Grants Binance Operational MVP License
Binance, the world’s leading cryptocurrency exchange, has achieved yet another significant milestone in its global expansion. The company’s Dubai subsidiary, Binance FZE, has become the first exchange to be granted the Operational Minimum Viable Product (MVP) license by Dubai’s Virtual Asset Regulatory Authority (VARA).
#Binance FZE, our Dubai based subsidiary, is the world's first exchange to receive the Operational Minimum Viable Product licence in Dubai.
Eligible users can now access regulated virtual asset services, such as fiat on and off ramp services via Binance FZE.
More here 👇
— Binance (@binance) July 31, 2023
Operational MVP License by VARA
This achievement marks the culmination of Binance’s efforts to work closely with local regulators and comply with Dubai’s unique regulatory framework for Virtual Asset Service Providers (VASPs). The license empowers Binance to offer approved services within the city, including virtual asset exchange and broker-dealer services, initially catering to institutional and qualified retail investors.
Richard Teng, Head of Regional Markets at Binance, expressed his delight at being granted the operational MVP license. He stated, “We are honored to be the first exchange to be granted an operational MVP license by VARA—a result of over a year of due diligence, collaboration, and consistent demonstration of responsible intent. Operating within this regulated ecosystem, we are committed to ensuring secure and seamless customer migration, with robust Know-Your-Customer and Customer-Due-Diligence as part of the rigorous onboarding remediation as stipulated by VARA.”
The journey to achieving this operational license began with Binance obtaining a provisional MVP license in March 2022, followed by a preparatory MVP license in September of the same year. With the operational MVP license, eligible users in Dubai can now access authorized services, including the ability to safely convert virtual assets to fiat under VARA-designated standards that comply with the intergovernmental Financial Action Task Force. The regulatory oversight provided by VARA ensures investor protection and market assurance standards tailored specifically for the virtual asset sector, setting a solid foundation for responsible innovation and user safety.
Global Regulatory Precedent
Alexander Chehade, Binance Dubai’s General Manager, remarked on this significant achievement, stating, “The last few years have cemented Dubai as a global virtual asset hub, and we are excited to be a witness to that growth as we build on our operations here, with continued commitment to market and investor security.”
With Dubai’s embrace of blockchain technology and its vision for the virtual asset industry, Binance believes this development will serve as a model for the global market. The company is proud to be part of VARA’s virtual asset ecosystem and looks forward to further growth in line with Dubai government’s regulatory regime and guidance.
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