Binance announced on Monday it had received the Operational Minimum Viable Product (MVP) license issued by Dubai’s Virtual Assets Regulatory Authority (VARA).
The exchange secured the landmark license via its subsidiary Binance FZE.
Binance will now offer cryptocurrency exchange services to qualified institutional and retail customers.
Binance has become the first cryptocurrency exchange to secure the Operational Minimum Viable Product license in Dubai.
According to an announcement the company published on Monday, the milestone was achieved through Binance FZE, the exchange’s Dubai-based subsidiary.
#Binance FZE, our Dubai based subsidiary, is the world’s first exchange to receive the Operational Minimum Viable Product licence in Dubai.
Eligible users can now access regulated virtual asset services, such as fiat on and off ramp services via Binance FZE.
More here 👇
— Binance (@binance) July 31, 2023
VARA-approved crypto license
The operational MVP license is issued by Dubai’s Virtual Assets Regulatory Authority (VARA) and will allow Binance to offer virtual asset exchange services to qualified customers.
“We are honored to be the first exchange to be granted an operational Minimum Viable Product License by VARA — a result of over a year of due diligence, collaboration, and consistent demonstration of responsible intent – that now allows us to be able to leverage the potential of a progressive regulatory framework, enabling innovation while furthering user protection,” Richard Teng, Head of Regional Markets at Binance, said.
VARA issued the operational MVP license to the world’s largest crypto exchange by trade volume after approving the provisional and preparatory MVP licenses in March and September 2022 respectively.
Binance has underscored the importance of the license by noting that its commitment to the onboarding remediation outlined in the VARA regulatory framework, including in stringent Know-Your-Customer (KYC) and customer due diligence.
“With this operational MVP license, all users onboarded through this platform can expect access to a trusted and regulated service that prioritizes security alongside compliance with highly specialized, tier-one virtual asset regulations under VARA,” Alexander Chehade, the General Manager at Binance Dubai, said in a statement.
The strong footing Binance has in Dubai and the UAE adds to the exchange’s recent efforts to expand its services across the globe within the context of regulatory compliance. But the company has also been in the crosshairs of several regulatory bodies, including in the United States where the SEC filed a securities violations lawsuit against it and the CEO Changpeng Zhao.
Binance has also had to exit from a number of jurisdictions, including Canada and the Netherlands due to various regulatory hurdles.