Binance Secures MVP License From Dubai Regulator
- Binance, the world’s biggest crypto exchange, has been granted the minimal viable product (MVP) license by Dubai’s VARA, after it recently had acquired in-principle approval to operate in the region as well.
- The exchange can now provide an “approved range of virtual asset related services to suitably qualified retail and institutional investors in Dubai” as long as it follows all the local laws established by VARA.
The world’s biggest crypto exchange by trading volume, Binance, has secured another license in Dubai from the newly established regulator, the Virtual Asset Regulatory Authority (VARA). The exchange has been granted the minimal viable product (MVP) license, and it recently had acquired in-principle approval to operate in the region as well.
As per a report, the license is an important milestone for Dubai as well as the crypto exchange as together, they enter a new journey of crypto adoption. The provisional license was approved in March and now, the MVP license further establishes the exchange’s dominance in the business region of the UAE.
Additionally, Binance can now provide an “approved range of virtual asset related services to suitably qualified retail and institutional investors in Dubai within its internationally benchmarked legislative framework for virtual asset service providers,” the report confirmed.
Moroever, there is an extra layer of protection for investors as well because with the MVP license, VARA will now approve the clientele that will come to the exchange for its services. As a result, customers will have the benefit of continuing their activities on a platform which is regulated by VARA itself.
“VARA’s unique operating model is setting a benchmark for the global industry, and this most recent registration is an acknowledgement of our compliance and safety processes in the new regulatory framework. We strongly believe there is a significant opportunity to work with our industry peers to develop consistent implementation standards around the world as we have been doing in Dubai,”said the CEO of Binance, Changpeng “CZ” Zhao
Binance Dubai GM, Alexander Chehade, stated that this decision taken by the regulatory authority is a “reflection of the country’s progressive stance on blockchain technology and its willingness to embrace this sector through collaboration.”
The report also confirmed that with the MVP license, the world’s biggest crypto exchange will be allowed to open a client money account with a local bank and as a result, provide a number of options and services to its retail and insitutional users. These services range from crypto exchange services, transfer of cryptocurrencies, custody and management of digital assets, and conversion between virtual assets and fiat currencies.
Additionally, the chairman of VARA Helal Saeed Almarri stated that the regulatory authority is “pleased” to have Binance operating within its boundaries and under its jurisdiction. With the MVP license grant to Binance, the regulatory authority aims to “strike an effective balance between value creation and risk mitigation, enabling open market innovation while assuring protection for the economically vulnerable.”