Binance, the world’s largest cryptocurrency exchange, has achieved a significant milestone in its regulatory journey by obtaining an operational minimum viable product (MVP) license in Dubai. The new license, granted by Dubai’s Virtual Asset Regulatory Authority (VARA), allows Binance to offer cryptocurrency exchange and virtual asset broker-dealer services to institutional and qualified retail investors in Dubai.
This achievement marks the latest step in the exchange’s efforts to gain regulatory approval in various jurisdictions. The operational MVP license follows the previously obtained provisional license and showcases its commitment to meeting regulatory standards.
Binance’s Operational MVP License in Dubai
Binance’s subsidiary in Dubai, Binance FZE, has received the operational MVP license from VARA, granting the exchange the ability to offer a crypto-to-fiat exchange, conversions, transfers, custody, brokerage, and virtual asset payments and remittance services. However, the current scope of these services is limited to institutional and qualified retail investors in Dubai, who meet specific eligibility criteria.
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To qualify as a “qualified retail client,” investors must be at least 21 years old and provide evidence of possessing 500,000 United Arab Emirates dirhams ($136,000) in net liquid assets, backed by documentary proof such as bank statements. Additionally, eligible investors are required to submit valid identification documents, including passports, visas, proof of UAE address, and contact details.
Binance’s Regulatory Progression and VARA’s Compliance Requirements
Binance’s latest regulatory win in Dubai builds upon the previous provisional MVP license issued in March 2022. Subsequently, in September 2022, the exchange obtained a preparatory MVP license. The operational MVP license signifies a significant step forward for the leading crypto exchange, demonstrating its adherence to the regulatory framework set forth by VARA.
VARA’s regulatory requirements encompass various rulebooks covering general operations, compliance, and market conduct. Notably, these regulations were published by VARA in 2023, aiming to enhance transparency and accountability within the cryptocurrency industry.
Related: Binance Launches Regulated Digital Asset Platform in Kazakhstan
Conclusion
Binance’s acquisition of an operational MVP license in Dubai reinforces its commitment to regulatory compliance and serving the needs of institutional and qualified retail investors. As it navigates the changing regulatory landscape, continued cooperation with VARA and adherence to compliance requirements are essential for establishing a secure crypto trading environment in Dubai. While this milestone is significant, the exchange remains focused on fulfilling the remaining conditions for the Full Market Product (FMP) license to expand authorized services in the region.
