The Dubai-based subsidiary of Binance is the first exchange to receive the Operational Minimum Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA), according to a statement released by the cryptocurrency exchange.
The Operational MVP license will enable Binance FZE to offer services in Dubai approved by VARA, including exchange and broker-dealer services — initially to institutional and qualified retail investors, said the company.
The issuance of the operational MVP license follows Binance’s provisional MVP license in March 2022 and a preparatory MVP license in September 2022.
Having done so, VARA has now permitted 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.
#Binance FZE, our Dubai based subsidiary, is the world's first exchange to receive the Operational Minimum Viable Product licence in Dubai.
— Binance (@binance) July 31, 2023
Eligible users can now access regulated virtual asset services, such as fiat on and off ramp services via Binance FZE.
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Binance’s infrastructure
The progression from the Provisional License, granted in 2022, to an Operational MVP License,
“means eligible users in Dubai will now be able to access authorised services, including the ability to safely convert virtual assets to fiat under VARA-designated standards compliant with the intergovernmental Financial Action Task Force (FATF)”,
it said.
Richard Teng, head of Regional Markets at Binance, said,
“We are honoured to be the first exchange to be granted an operational Minimum Viable Product License by VARA — a result of over a year of due diligence, collaboration, and consistent demonstration of responsible intent – that now allows us to be able to leverage the potential of a progressive regulatory framework, enabling innovation while furthering user protection.
“Operating within this regulated ecosystem, we are committed to ensuring secure and seamless customer migration, with robust Know-Your-Customer and Customer-Due-Diligence as part of the rigorous onboarding remediation as stipulated by VARA. Our priority is to be able to operate this first fully regulated exchange in, and from Dubai, in a FATF-compliant ecosystem, setting the stage for global scalability with uncompromised user assurance.”
“We believe its vision for this space will set precedents for the global industry. We are proud to be part of VARA’s virtual asset ecosystem and to be leading the way within its regulatory framework. We look forward to growing even more Web3 opportunities in line with the Dubai government’s regulatory regime and guidance”, read the statement issued by Binance.
UAE’s embrace of blockchain technology
The UAE’s embrace of blockchain technology has created a thriving industry with security and innovation as complementary assets at its core.
Alexander Chehade, Binance Dubai’s general manager, said,
“The last few years have cemented Dubai as a global virtual asset hub and we are excited to be a witness to that growth as we build on our operations here, with continued commitment to market and investor security.
“With this operational MVP license, all users onboarded through this platform can expect access to a trusted and regulated service that prioritizes security alongside compliance with highly specialized, tier-one virtual asset regulations under VARA. This milestone achievement is one step closer to providing even more users with access to our services and we are excited about the continued work in this space.”
VARA’s issuance of the Operational MVP License to Binance is a significant step towards a future of regulated, secure, and customer-centric virtual asset services, said Binance.
News Source: Gulf Business
