Binance receives green light for crypto services in Dubai

Crypto exchange Binance received a Minimal Viable Product (MVP) license from Dubai's Virtual Asset Regulatory Authority (VARA), enabling the crypto exchange to offer a range of virtual asset services to qualified retail and institutional investors, the company disclosed on Tuesday.

The development follows the issuance of the provisional license granted in March, that permitted the company to set up an office in the United Arab Emirates and provide digital asset exchange services to pre-qualified investors and financial firms.

With the new permission, Binance will be able to offer a range of virtual asset-related services to qualified retail and institutional investors under the legislative framework for virtual asset service providers (aka VASPs).

It will also permit the company to access local banking channels and provide open money accounts, virtual-fiat currency conversions, assets transfers, custody, and management, as well as token offering and trading services.

Changpeng Zhao (CZ), founder and CEO of Binance, commented in a statement:

"We strongly believe there is a significant opportunity to work with our industry peers to develop consistent implementation standards around the world, as we have been doing in Dubai.”

Binance's actions suggest that it intends to further expand its presence in the Middle East. In March, the exchange obtained a license to operate in Bahrain, offering crypto services, including custody, trading and portfolio management. 

Established in March 2022, Dubai’s VARA is responsible for licensing and regulating virtual asset providers in the emirate and its free zone territories. Local authorities also granted a provisional license to CryptoCom, and approval for a regional headquarters for FTX.