Binance continues to expand its presence in the Middle Eastern region.
Binance, a leading crypto exchange, has achieved another landmark on its road to making the United Arab Emirates (UAE) its strategic hub.
According to the announcement shared on July 31st, the Dubai-based Binance subsidiary, Binance FZE, has successfully received an Operational Minimum Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA).
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This latest regulatory accomplishment paves the way for Binance to engage in cryptocurrency exchange activities and offer services as a virtual asset broker-dealer.
At this stage, the services are available only to institutional and appropriately qualified retail investors in Dubai. Accordingly, such investors can access legally approved services, including crypto-to-fiat exchanges, aligning with the Intergovernmental Financial Action Task Force (FATF) regulations.
Richard Teng, Binance’s head of regional markets, emphasized the company's commitment to providing seamless customer transition in compliance with Know Your Customer regulations within Dubai's regulated framework. He stated:
Our priority is to be able to operate this first fully regulated exchange in, and from Dubai, in a FATF-compliant ecosystem, setting the stage for global scalability with uncompromised user assurance.
Binance’s recent regulatory stride builds on its progression from a provisional MVP license issued in March 2022 by VARA and 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 has restricted capabilities, only allowing services to a limited group of accredited investors.
Having secured the operational MVP license, Binance can offer crypto exchange and virtual asset broker-dealer services in Dubai. While the company is expanding its reach in the Middle East, Europe is shutting its doors for the company. Recently, the news broke that Binance withdrew its application from German and Dutch regulators and preparing to leave Cyprus and the United Kingdom.
