Binance, the digital exchange platform, announced on Monday that its Dubai subsidiary, Binance FZE, has obtained an operational MVP license from the Dubai Virtual Asset Regulatory Authority (VARA).
This license enables the platform to offer regulated services in Dubai and from Dubai, such as digital asset exchange and brokerage services. Initially, these services will be limited to institutional investors and qualified investors, as clarified by the company.
In a blog post, Binance pointed out that it has become the first platform to receive an MVP license and described this development as a “historic achievement” that reaffirms its commitment to building a compliant exchange platform in cooperation with local regulatory authorities.
This latest regulatory license for Binance in Dubai comes after VARA granted the exchange a temporary MVP license in March 2022, followed by a preparatory MVP license in September, according to the digital company’s announcement.
The upgrade to the operational MVP license will allow eligible users in Dubai to access authorized services, including converting cryptocurrencies to fiat currencies, in line with standards compliant with the Financial Action Task Force (FATF) recommendations.
Richard Teng, Regional Markets Head at Binance, stated, “Through working within this regulated framework, we are committed to ensuring safe and smooth customer migration, with robust customer verification and due diligence as part of the rigorous registration process set by VARA.”
These licenses in Dubai, United Arab Emirates, come at a time when Binance faces increasing pressure from regulatory authorities in several other regions, including the United States, where it is dealing with lawsuits from securities and commodities regulators. In Europe, the major cryptocurrency company has either withdrawn from several markets or applied for the withdrawal of its licenses.
