Key Points

  • Binance is the world's first trading platform to obtain an MVP operating license from the Dubai Virtual Asset Regulatory Authority (VARA).

  • Eligible users can now access regulated virtual asset services in Dubai in accordance with VARA’s investment protection and market assurance standards.

  • This milestone achievement confirms Binance’s commitment to working with local regulators to build a compliant trading platform.

The Dubai Virtual Assets Authority has issued a minimum viable product (MVP) operating license to Binance, allowing it to operate virtual asset trading platform services.

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

The MVP operating license enables Binance to offer VARA-approved services in Dubai, including a retail trading platform and broker-dealer initially targeting institutions and qualified retail investors.

Breaking new ground

After successfully obtaining the MVP provisional license in March 2022 and the MVP preparatory license in September 2022, Binance was once again awarded the MVP operating license.

To date, VARA allows Binance to operate two licensed businesses in Dubai for institutional investors and qualified retail investors, namely virtual asset trading platform services and virtual asset securities broker services.

This milestone development highlights our commitment to working with local regulators to establish a compliant trading platform under Dubai’s unique Virtual Asset Service Provider (VASP) regulatory framework.

Safe and standardized services

The upgrade from the MVP provisional license granted in 2022 to an MVP operating license means that eligible users in Dubai can now access authorized services, including the ability to securely convert virtual assets into fiat currency in accordance with VARA-specified standards that meet the intergovernmental Financial Action Task Force (FATF) on money laundering.

Institutions and residents eligible to use the services offered by the Dubai MVP operating license can do so with peace of mind that they are covered by investor protection and market assurance standards tailored specifically for the virtual asset sector, and that VARA requires any licensee to provide regulated virtual asset services in Dubai.

Richard Teng, Head of Regional Markets at Binance, commented: “After more than a year of due diligence, collaboration, and continued responsibility, we are honored to be the first exchange to receive the VARA MVP operating license, allowing us to leverage the potential of a progressive regulatory framework to innovate while advancing user protection.

Within this regulated ecosystem, we are committed to ensuring a secure and smooth client onboarding, with robust identity verification and customer due diligence processes incorporated into the rigorous onboarding remediation measures as mandated by VARA. Our priority is to be able to operate the first fully regulated trading platform in Dubai, within a FATF-compliant ecosystem, laying the foundation for global scalability while providing unassailable user assurances.”

Looking Ahead: The Future of Growth

The UAE’s adoption of blockchain technology has created a thriving industry with security and innovation as core complementary assets.

We believe the country’s vision for this space will set a precedent for the global industry. We are proud to join the VARA virtual asset ecosystem and play a leading role in its regulatory framework. We look forward to following the Dubai government’s regulatory regime and guidance to create more Web3 opportunities.

Alexander Chehade, General Manager of Binance Dubai, noted: “Over the past few years, Dubai has solidified its position as a global hub for virtual assets, and as we have established operations here, we are pleased to witness this growth and will remain committed to the market and investor security in the future.

With the MVP operating license, all users of the platform will have access to a regulated and trusted service that not only complies with VARA’s highly specialized Tier 1 virtual asset regulations, but also puts security first. This milestone achievement brings us one step closer to our goal of providing services to more users, and we are excited to continue to deepen our efforts in this area.”

Conclusion

Binance’s regulatory journey in Dubai marks a new era for virtual asset services, not only in the UAE, but also globally. VARA’s awarding of the MVP operating license to Binance marks an important step towards a regulated, secure, and customer-centric future for virtual asset services.

Binance’s achievement in obtaining this latest license is a testament to its commitment to working hand-in-hand with regulators, setting a precedent for positive collaboration in this rapidly evolving fintech sector.

As we continue to grow in this space, we’re excited about the potential this milestone has to bring greater security, innovation, and scalability to institutions, retail investors, and the global virtual asset community.”

Further reading

  • Licensing, registration and other legal matters

  • Binance Registers as Virtual Asset Service Provider in Spain

  • Gulf Binance Obtains Digital Asset Operator License in Thailand