Binance, one of the major cryptocurrency exchanges, has achieved a significant milestone in its relationship with the United Arab Emirates (UAE) regulator by receiving a new license in Dubai. The Dubai-based subsidiary of Binance, known as Binance FZE, announced on july 31 that it has obtained a Minimum Viable Product (MVP) license from the Dubai Virtual Assets Regulatory Authority (VARA). This license allows Binance to operate cryptocurrency exchanges and offer virtual asset broker-dealer services. However, the services are currently li limited to institutional and qualified retail investors in Dubai.
To become a user of Binance Dubai, investors must have the status of "Qualified Retail Customer" in Dubai, meeting certain criteria. Eligible users should be over 21 years old and demonstrate net liquid assets of at least AED 500,000 (approximately US $136,000) with Qualified investors are required to provide valid identification documents, proof of address, and contact information in the UAE.
Binance Dubai's new regulatory approval expands its services, allowing for cryptocurrency-to-fiat exchange and conversion, transfer and custody, brokerage, and virtual asset payment and remittance services. This development builds upon the provisional MVP license issued by VARA in March 2022, and The pre-MVP license obtained in September 2022.
In April 2023, VARA asked Binance to provide additional information about its business requirements, signaling the regulator's effort to tighten regulatory standards in Dubai. Binance responded by providing the requested information, viewing it as a collaborative process between companies and regulators in preparation for the next phase of licensing.
Recently, VARA revoked the operating license of another cryptocurrency exchange, BitOasis, for failing to meet statutory conditions within the specified timelines. BitOasis later stated that it was working with VARA to fulfill the remaining conditions. Binance's compliance with VA RA's rules and regulations, including general operations, compliance, and market conduct requirements, plays a crucial role in maintaining its license and regulatory standing in the UAE.
As Binance continues its expansion in the UAE, this new license allows the exchange to serve institutional and qualified retail investors in Dubai, providing them with a regulated and compliant platform for their cryptocurrency activities.
