Binance Secures Operational License in Dubai despite Global Woes

Binance Secures Operational License in Dubai despite Global Woes

Time Stamp: July 31, 2023 3:11 AM
Binance Secures Operational License in Dubai despite Global Woes PlatoBlockchain Data Intelligence. Vertical Search. Ai.

When dark
clouds gather over Binance in the USA and Europe, the sun begins to shine for
the exchange in the Middle East. Binance FZE, the Dubai subsidiary of the
crypto exchange, has been awarded an Operational Minimum Viable Product (MVP) license
from Dubai’s Virtual Asset Regulatory Authority (VARA).

This
milestone represents a significant leap for the firm and its users, empowering
it to offer virtual asset (VA) exchange and broker-dealer services to
institutional and qualified retail investors in the emirate.

Binance Gains New License
in Dubai

This latest
advancement comes in the wake of VARA granting Binance a preparatory MVP license
back in September 2022, which came with certain stipulations that the company
had to fulfill to be eligible for full operations.

The shift
to an operational MVP license signifies that eligible Binance FZE users can
safely convert VA to fiat currency, adhering to Financial Action Task Force
(FATF) compliant standards.

“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,” Richard Teng, the Head of International Markets at
Binance, highlighted the company’s commitment towards ensuring a smooth
transition for its customers.

Teng continued to emphasize Binance’s priorities moving forward, including operating a
fully regulated exchange in Dubai within a FATF-compliant ecosystem. This will
pave the way for global scalability without compromising user assurance.

Dubai Wants to Become a New
Crypto Hub

Binance is
not the only crypto company that has decided to launch its operations in the
United Arab Emirates (UAE) and apply for local licenses. Previously, other
major digital asset exchanges, including Bitget, ByBit and OKX, had announced a
similar move.

In the face
of regulatory challenges in Europe and the USA, the Middle East may become the
main focus for the crypto industry. This is confirmed, among other things, by
the latest move by Binance and the acquisition of another local license.

Alexander
Chehade, the General Manager of Binance Dubai, confirmed that all users
onboarding through this platform could anticipate access to a trusted and
regulated service prioritizing security and compliance with highly specialized,
tier 1 VA regulations under VARA.

The local
market may have great potential in terms of the number of retail investors
interested in trading. This is confirmed by data from the FX/CFD market, where
the number of active traders is growing.

When dark
clouds gather over Binance in the USA and Europe, the sun begins to shine for
the exchange in the Middle East. Binance FZE, the Dubai subsidiary of the
crypto exchange, has been awarded an Operational Minimum Viable Product (MVP) license
from Dubai’s Virtual Asset Regulatory Authority (VARA).

This
milestone represents a significant leap for the firm and its users, empowering
it to offer virtual asset (VA) exchange and broker-dealer services to
institutional and qualified retail investors in the emirate.

Binance Gains New License
in Dubai

This latest
advancement comes in the wake of VARA granting Binance a preparatory MVP license
back in September 2022, which came with certain stipulations that the company
had to fulfill to be eligible for full operations.

The shift
to an operational MVP license signifies that eligible Binance FZE users can
safely convert VA to fiat currency, adhering to Financial Action Task Force
(FATF) compliant standards.

“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,” Richard Teng, the Head of International Markets at
Binance, highlighted the company’s commitment towards ensuring a smooth
transition for its customers.

Teng continued to emphasize Binance’s priorities moving forward, including operating a
fully regulated exchange in Dubai within a FATF-compliant ecosystem. This will
pave the way for global scalability without compromising user assurance.

Dubai Wants to Become a New
Crypto Hub

Binance is
not the only crypto company that has decided to launch its operations in the
United Arab Emirates (UAE) and apply for local licenses. Previously, other
major digital asset exchanges, including Bitget, ByBit and OKX, had announced a
similar move.

In the face
of regulatory challenges in Europe and the USA, the Middle East may become the
main focus for the crypto industry. This is confirmed, among other things, by
the latest move by Binance and the acquisition of another local license.

Alexander
Chehade, the General Manager of Binance Dubai, confirmed that all users
onboarding through this platform could anticipate access to a trusted and
regulated service prioritizing security and compliance with highly specialized,
tier 1 VA regulations under VARA.

The local
market may have great potential in terms of the number of retail investors
interested in trading. This is confirmed by data from the FX/CFD market, where
the number of active traders is growing.

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