key point

  • Binance received a full license in Dubai after CZ relinquished control of the local unit.

  • Receiving a full VASP license represents a rare regulatory victory for the exchange.



Binance Holdings Ltd. has reached a significant milestone by obtaining a full Virtual Asset Service Provider (VASP) license in Dubai. This achievement reflects Binance's commitment to navigating the complex regulatory environment while continuing to expand its global presence. As part of the agreement, co-founder Changpeng Zhao made the strategic decision to relinquish voting control of the local entity, a move designed to ensure compliance with regulatory requirements and facilitate a smooth license acquisition.

CEO Richard Teng directly confirmed the issuance of the license in a recent interview with Bloomberg TV. Teng's recognition of this development highlights the importance of this achievement to Binance, solidifying its position as the world's largest digital asset exchange. Notably, Binance's subsidiary in Dubai had previously been granted a license to operate a minimum viable product (MVP), a stepping stone to paving the way for a full VASP license. This MVP license enables users to access regulated virtual asset services in accordance with Dubai's regulatory standards, laying the foundation for subsequent achievements.

Regulatory Challenges and Binance’s Response

The process of obtaining a full VASP license in Dubai was not without its challenges. Binance FZE, a local subsidiary in Dubai, has been operating under an operational MVP license for broker-dealer and exchange services since mid-2023. However, obtaining a full VASP license necessitated certain concessions, notably requiring CZ to relinquish voting control of the Dubai entity. This strategic move was critical to ensure compliance with the agreement reached with U.S. authorities and in line with regulatory expectations.

Despite facing regulatory hurdles, Binance has demonstrated resilience and adaptability under the leadership of CEO Teng Teng. The company has not only weathered regulatory challenges but has also continued to expand its product offerings and strengthen compliance efforts.

Future Outlook and Regulatory Compliance

Looking ahead, Binance is poised to leverage its recent achievements to further solidify its position in the global cryptocurrency space. While Binance celebrates this important milestone, it remains mindful of the competitive landscape in Dubai and beyond. Competitors such as OKX and Crypto.com have already achieved VASP status, highlighting the need for Binance to maintain its competitive edge.

CEO Richard Teng laid out a clear vision for the future, emphasizing the importance of strengthening compliance measures and building positive relationships with global regulators. This commitment to regulatory compliance and transparency will help guide Binance's expansion efforts and ensure sustainable growth in the evolving cryptocurrency market.