Binance has become the first virtual asset exchange to receive an Operational Minimum Viable Product (MVP) License from Dubai's Virtual Assets Regulatory Authority (VARA), enabling the company to offer regulated virtual asset services to qualified users in Dubai.
Binance, the world's leading cryptocurrency exchange, has been granted an Operational MVP License by Dubai's Virtual Asset Regulatory Authority (VARA) for its subsidiary, Binance FZE. This milestone achievement makes Binance the first exchange to secure such a license, demonstrating its commitment to building a compliant exchange in collaboration with local regulators.
With the Operational MVP License, Binance is now authorized to offer commission-specific exchange and broker-dealer services in Dubai for institutional and qualified retail investors. This latest development follows Binance's successful attainment of a provisional MVP license in March 2022 and a preparatory MVP license in September 2022.
VARA's approval permits Binance to operate two licensed activities: virtual asset exchange services and virtual asset broker-dealer services, limited to institutional and qualified retail investors in Dubai. This marks a significant step in Binance's dedication to building a compliant exchange within Dubai's unique regulatory framework for Virtual Asset Service Providers (VASPs).
Eligible users in Dubai will now have access to authorized services such as securely converting virtual assets to fiat under VARA-designated standards compliant with the Financial Action Task Force. Institutions and residents that qualify to use the services provided by the Operational MVP License can do so with the assurance of investor protection and market standards tailored for the virtual asset sector.
Richard Teng, Head of Regional Markets at Binance, commented on the achievement, highlighting the exchange's commitment to ensuring secure and seamless customer migration while adhering to robust Know-Your-Customer and Customer-Due-Diligence regulations stipulated by VARA. Moving forward, Binance aims to continue growing Web3 opportunities in line with the Dubai government's regulatory guidance and vision for the industry.