Binance has strengthened its position in the Middle East with a new Minimal Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA), the crypto exchange announced on Tuesday.
The new license came after Dubai’s newly formed digital asset regulator granted a provisional license to the crypto exchange earlier in March.
“VARA’s unique operating model is setting a benchmark for the global industry, and this most recent registration is an acknowledgement of our compliance and safety processes in the new regulatory framework,” said Binance's CEO, Changpeng Zhao.
Now with the MVP license, Binance can offer a range of approved virtual asset-related services to both qualified retail and institutional investors. Additionally, the exchange can open a client money account with a domestic bank.
Some of the services it can offer with the license are virtual asset exchange services, crypto-fiat conversions, crypto transfers, custody and management services, along with token offerings. Moreover, the license will allow Binance to offer crypto payments and remittance services.
“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,” added the Chairman of VARA, Helal Saeed Almarri.
The Crypto Hub in the Middle East
VARA was established last March under the Dubai Virtual Asset Regulation Law, aiming to push Dubai into one of the global crypto hubs. The move was successful as several big crypto brands, including Binance, Crypto.com and Blockchain.com received a license from the jurisdiction.
Binance received the MVP license as the exchange has been changing its operational strategies and secured several regulatory licenses. Apart from Dubai, the exchange is now regulated in Italy, France and Spain.
“Our registration in Dubai is a reflection of the country’s progressive stance on blockchain technology and its willingness to embrace this sector through collaboration,” said the Dubai General Manager at Binance, Alexander Chehade. “We look forward to a continued partnership as we build upon our team and operations in Dubai to roll out additional services, including local banking capabilities and enhanced products.”
