key takeaways:
- Binance becomes the world’s first exchange to receive an Operational MVP License from Dubai’s VARA.
- Eligible users can access regulated virtual asset services in Dubai, meeting VARA’s investor protection and market assurance standards.
Binance, one of the world’s largest cryptocurrency exchanges, is set to embark on a groundbreaking venture in the vibrant and promising city of Dubai. With its sights on diversifying its services and expanding its global reach, Binance has announced plans to offer crypto broker-dealer services in Dubai.
Binance has earned the competence to deliver permitted services in Dubai under VARA control by securing the operational minimum viable product (MVP) licence.
The services comprise exchange and broker-dealer facilities, which are initially intended for institutional and qualified retail investors, but have the potential to grow to include other retail investors once complete approval is obtained.
This strategic move represents a significant milestone for the cryptocurrency industry, as it seeks to establish a stronger foothold in one of the Middle East’s most dynamic financial hubs.
Binance’s Dubai subsidiary, Binance FZE, has secured a license that enables it to provide services to institutional and qualified retail investors in the country. This achievement comes after Binance’s previous endeavors to obtain a provisional MVP license in March 2022 and a preparatory MVP license in September 2022.
With the new license in place, eligible users in Dubai can confidently access authorized services, knowing they are protected by investor safeguards and market assurance standards designed specifically for the virtual asset sector, as stated by the exchange.
Alexander Chehade, General Manager of Binance Dubai, expressed enthusiasm for witnessing Dubai’s transformation into a global virtual asset hub over the past few years. Chehade emphasized Binance’s commitment to contributing to this growth as they continue to strengthen their operations in the region.
In Dubai, the VARA (Virtual Asset Regulatory Authority) follows a comprehensive four-stage licensing process for applicants to ensure compliance with the regulatory framework before granting a full market product license (FMP).
At present, Binance has not yet acquired an FMP license, which would allow them to offer an extended array of authorized services.
The transition from MVP (Minimum Viable Product) to FMP will enable Binance to onboard retail clients without being subject to the 500,000 AED (approximately $136,000) liquid capital threshold set by VARA during the MVP stage, as confirmed by a Binance spokesperson.
