Binance bags Virtual Asset License for limited operations in Dubai

By Salma C, Intern Reporter
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Representational Image

Binance, the world’s leading blockchain, and cryptocurrency infrastructure provider, has been granted a Virtual Asset License to operate on Dubai’s ‘Test-Adapt-Scale’ virtual asset market model as a foundation for expansion into the region.

Under the initial control phase of the Virtual Asset Regulatory Authority (VARA), which retains strict regulatory oversight and mandatory FATF compliance controls, Binance will be allowed to expand its limited exchange products and services to pre-qualified investors and professional financial service providers.

All licensed VARA service providers will be monitored step by step to open access to the retail market. In addition to its exchange activities, Binance will open a blockchain technology hub at the Dubai World Trade Center to build a dynamic blockchain ecosystem with new talents.

Changpeng Zhao Image
Changpeng Zhao
Founder & CEO

“High standards of regulation and compliance are critical to the development and maturing of the global crypto and blockchain industry, which is why our team has been working tirelessly to demonstrate how we meet and exceed the requirements of regulators such as the Dubai Virtual Asset Regulatory Authority.”

Mr. Zhao further added that, “Binance is appreciative of being awarded this license in such a progressive regime, targeting uncompromised governance and market security. The collaborative way in which Binance has been engaged to bring proven industry compliance leading experience to the Dubai ecosystem is indicative of the unique operating model that the VARA is creating for the global industry.”

Commenting on Binance joining the new Virtual Asset ecosystem, Mr. Helal Saeed Al Marri, Director-General of Dubai World Trade Centre Authority that houses VARA, remarked that “The new VARA is symbolic of Dubai’s confidence in the potential of this future economy driver – if introduced with prudence and legitimacy. To this end, our regime is structured to catalyze collaboration, foster innovation, and most critically secure public interest.

Mr. Al Marri further added that “Onboarding Binance within the VARA is reflective of their commitment to the Dubai agenda – to provide the global industry the certainty of governance, enabled by ‘shared industry responsibility and legislative security for society.”

Dubai is the first global economy to establish a separate regulator for the VA sector, and this VARA-ruled ecosystem will be further developed with well-known and trusted international leaders in the sector. The Virtual Asset Exchange License issued by VARA ensures Binance to operate its local business from Dubai under the newly enacted regulatory ecosystem subject to comprehensive legislation and internationally applicable policy frameworks.

Earlier, Binance has received the crypto-asset service provider license from the Central Bank of Bahrain (CBB), as it aims to expand in the Middle East.

Related: Metaverse firm RFOX enters Dubai’s virtual asset market with new office