Binance, one of the world’s most popular digital currency exchanges, has finally been granted the Minimal Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority after having been issued with a Provisional License back in March, according to its official announcement post on September 20th.
However, with the MVP license, Binance is capable of offering a recognized variety of virtual asset-related services to suitably qualified institutional and retail investors in Dubai, all while following to the city’s internationally acclaimed regulatory environment for such service providers.
Therefore, customers of Binance may now use the local banking channels made available by this first-of-its-kind regulatory license. It will serve a clientele that VARA has approved. Trading on a regulated platform under the direction of VARA in Dubai will also provide users with higher levels of consumer protection.
In addition, after switching to an MVP license, the exchange can open a client money account with a domestic bank and provide qualified clients services such as virtual asset exchange, virtual asset transfer, custody and management, virtual asset offering and trading, and virtual asset payments and remittances.
Nevertheless, this license marks a major milestone for Binance as they continue to register various local entities in the Middle East and North Africa region, as well as across Europe, where they opened up branch offices in Italy, France, and Spain.
The MVP License A Major Milestone For Binance
According to Changpeng Zhao (CZ), founder and CEO of Binance:
“At Binance, we welcome regulations that are globally consistent, enable responsible innovation, protect users, and give them choice. VARA’s unique operating model is setting a benchmark for the global industry, and this most recent registration is an acknowledgment of our compliance and safety processes in the new regulatory framework.”
He also asserts that they strongly believe there is a significant opportunity to work with their industry peers to establish standardized practices across the globe. It seems his team has been working towards this goal in Dubai.
However, the Dubai Virtual Assets Regulatory Authority (VARA) is the world’s first specialist virtual-assets sector regulator. Following the implementation of Law No.4 of 2022, VARA was established in March 2022 and is in charge of issuing licenses and enforcing regulations for the virtual asset industry in the Emirate of Dubai.
Additionally, it manages all licensing requirements and requests permission for Virtual Asset operations under UAE legislation in its free zone regions (excluding DIFC). VARA is a crucial player in the development of Dubai’s advanced legal system, which protects investors and creates social standards for the regulation of the virtual asset market while advancing the idea of a borderless economy.
VARA Excellency Helal Saeed Almarri, Chairman of VARA, said:
“We are pleased to have Binance licensed to operate within the VARA MVP Programme. The VARA regime aims to strike an effective balance between value creation and risk mitigation, enabling open market innovation while assuring protection for the economically vulnerable.”
The MVP Phase, he continues, is intended for a small group of global participants who are dedicated to participating in the economy responsibly. In order to further Dubai’s commitment to building a cutting-edge, safe environment for this future economy, VARA looks forward to Binance playing an active role in the effort.