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  • Binance is the first exchange in the world to receive an operating license from the Dubai Virtual Assets Regulatory Authority (VARA).

  • Eligible users will now be able to access regulated virtual asset services in Dubai in accordance with VARA's investor protection and market assurance standards.

  • This significant achievement confirms Binance's commitment to building a compliant exchange in collaboration with local regulators.

The Dubai Virtual Assets Authority has granted Binance a minimum viable product license to operate a virtual asset exchange.

We are pleased to announce that our Dubai subsidiary Binance FZE has become the first exchange to receive a Minimum Viable Product (MVP) license from the Dubai Virtual Asset Regulatory Authority (VARA).

With this license, Binance can offer VARA-approved services in Dubai, including exchange and broker-dealer services. Initially, these services will only be available to institutional and qualified retail investors.

Expanding the boundaries

Binance has been working towards obtaining a license to operate since last year: in March 2022, the company received a provisional license, and in September 2022, a preliminary license.

Binance is now authorized to operate in two directions: providing virtual asset exchange services and virtual asset broker-dealer services aimed at institutional and qualified retail investors in Dubai.

This is an important achievement and underscores our commitment to working with local regulators to create a compliant exchange. Dubai also has a unique regulatory framework for virtual asset service providers (VASPs).

Reliable and regulated services

The move from a provisional license issued in 2022 to a full license means that eligible users in Dubai will now be able to use officially approved services, such as securely converting virtual assets into fiat under Financial Action Task Force VARA standards. Anti-Money Laundering (FATF).

Establishments and residents of Dubai entitled to use licensed services are subject to investor protection and market safeguard standards. These standards are designed specifically for the virtual asset sector and VARA requires all licensees providing virtual asset services in Dubai to comply with them.

Richard Teng, Head of Regional Markets at Binance, commented on the license award: โ€œWe are honored to be the first exchange to receive an MVP operating license from VARA. It is the result of more than a year of work, collaboration and consistent demonstrated responsible intent that now allows us to harness the potential of a progressive regulatory framework to foster innovation while enhancing user protection

Now, as we begin to operate within this regulatory ecosystem, we are committed to providing a safe and seamless customer migration experience. To achieve this, we implement robust KYC and customer due diligence protocols; This is all part of VARA's strict requirements for companies entering this market. Our goal is to not only operate and operate the first fully regulated exchange in Dubai; follow FATF standards and create the basis for global scaling with an uncompromising guarantee of user security."

Looking to the Future: Growth and Development

The UAE's adoption of blockchain technology has created a thriving industry with security and innovation as complementary elements at its core.

We believe the UAE's vision for this industry will set a precedent for other countries. We are honored to not only be part of the VARA ecosystem for virtual assets, but also to be pioneers within this regulatory framework. We look forward to creating even greater opportunities for Web3 that meet the guidelines and legal requirements of Dubai.

Alexandre Chehadeh, CEO of Binance Dubai, said: โ€œOver the past few years, Dubai has emerged as a global hub for virtual assets. We are pleased to witness this growth and develop our activities in this city, while always keeping the safety of the market and investors in mind.โ€

โ€œWith this license, all users who start using our platform can expect access to a reliable and regulated service that prioritizes security and compliance with the highly specialized Tier 1 virtual asset rules under VARA. This is a landmark moment, another step towards providing access to our services to even more users. We look forward to continuing to work in this direction.โ€

Conclusion

Our achievements in Dubai mark the beginning of a new era in the development of virtual asset services, not only in the UAE, but throughout the world. The issuance of the license from VARA was an important step towards the future of virtual asset services: regulated, reliable and customer-focused.

This license is also a confirmation of our desire to work together with regulators, setting a precedent for successful and compassionate collaboration in the rapidly changing world of financial technology.

This UAE solution promises increased reliability, enhanced innovation and a new level of scalability for institutional and retail investors, as well as the global virtual asset community, and we are excited to continue our journey in this industry.

Additional Information

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