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Following the issuance of an MVP license in July 2023, Binance FZE received a VASP license from Dubai regulatory authorities. This achievement is a significant milestone for Binance's mission to nurture the future of digital assets.
With the VASP license, Binance can extend its product offerings in the UAE not only to qualified and institutional investors but also to the retail market. This includes access to a wide range of digital asset services such as spot trading, lending and staking.
Qualified users will have access to margin and derivatives products such as futures and options trading. The acquisition of the VASP license underscores Binance's commitment to innovation in the global financial landscape, while ensuring transparency, regulatory compliance, and access to the benefits of blockchain technology.
We are proud to announce that Binance FZE, our subsidiary in Dubai, has received a Virtual Asset Service Provider (VASP) license from Dubai's Virtual Asset Regulatory Authority (VARA). This follows the initial issuance of the Minimum Viable Product (MVP) license in July 2023, which represents a significant milestone for Binance and the global virtual asset landscape.
The transition from an MVP license to a VASP license allows Binance FZE to extend its product offerings to the retail market alongside qualified and institutional investors. Individual clients can now access a wide range of digital asset products and services, including Spot trading, margin trading and staking – the widest range of regulated virtual asset services available not only in the UAE, but also across the world .
Bringing new possibilities
By commencing operations under the new VASP license, Binance FZE will significantly enhance its current offerings beyond spot and fiat trading services. Rather than simply expanding the token selection, users can expect a greater variety of services from the exchange. This landmark global license paves the way for all UAE customers to utilize a regulated platform for a full range of virtual asset products and services.
As Binance FZE General Manager Alex Chehade says: "This is an important milestone that validates our commitment to providing secure, compliant and best-in-class services to our users around the world. This highlights Dubai's position as a city forward-thinking, recognizing and embracing the financial potential that blockchain technology brings."
Diversified offers
For users looking for passive income opportunities, Binance FZE will offer services tailored specifically for this purpose, such as Simple Earn. Enhancing the scope of available investment strategies, it will also introduce new options through its lending services, including virtual asset lending. Additionally, management and investment services will allow users to leverage features such as ETH staking, BNB Vault, and Launchpool to expand the earning potential of their digital assets.
Emphasizing diverse trading services, the license will allow qualified and institutional investors to engage in margin and derivatives services, including futures and options. Currently, these offers are restricted to parties that meet investor criteria.
As Richard Teng, CEO of Binance, says: “The acquisition of the distinguished VASP license not only highlights but conclusively proves our firm commitment to revolutionizing the future of finance. Our achievement of this milestone represents a solid affirmation of our ongoing drive for transparency, regulatory compliance, and responsible growth in the ever-expanding digital asset sphere. It is an exciting prospect to further extend access to the transformative economic benefits of blockchain technology to our users in the UAE.”
Commitment to growth
Binance FZE obtaining the VASP license is more than a notable achievement; It's a testament to our unwavering pursuit of financial innovation, compliance and global reach. Linked to this prestigious license, we are poised to transform the digital asset landscape beyond Dubai, opening up access to a wide and diverse range of virtual asset products and services.
With a firm commitment to increasing our reach while ensuring user safety and regulatory compliance, we are excited to provide new possibilities for individual and institutional investors. This bold step reinforces our promise to create a safe and regulated space that builds on the immense potential of blockchain technology. As we move forward, we do so with a vision for a more inclusive, transparent and robust financial future for everyone.
Further reading
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Gulf Binance Secures Digital Asset Operator Licenses in Thailand
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