Binance becomes Dubai’s first crypto exchange to get the Operational Minimum Viable Product license.
Binance, the world’s largest cryptocurrency exchange, has been the first to get the Operational Minimum Viable Product license in Dubai, United Arab Emirates. Users are now able to use regulated virtual asset services on the exchange, like fiat on-ramp and off-ramp services, in accordance with Dubai’s Virtual Assets Regulatory Authority (VARA) investor protection and market assurance guidelines.
Binance Receives An Operational MVP License In Dubai
Dubai’s Virtual Assets Regulatory Authority (VARA) granted Binance an Operational Minimum Viable Product (MVP) license for operating virtual asset exchange services, based on an announcement on July 31.
Binance Dubai’s general manager, Alexander Chehade, stated:
“The last few years have cemented Dubai as a global virtual asset hub and we are excited to be a witness to that growth as we build on our operations here, with continued commitment to market and investor security.”
Binance’s Dubai subsidiary Binance FZE is now able to offer VARA-approved services such as virtual asset exchange and broker-dealer services. Initially, the crypto exchange will serve institutional and qualified retail investors.
Binance FZE was granted a provisional MVP license in March 2022, followed by a preliminary MVP license in September 2022. The first Operational MVP license’s acceptance demonstrates adherence to the local regulations and the VASP regulatory framework.
The license will allow Binance customers to safely convert virtual assets to fiat in accordance with Financial Action Task Force (FATF) guidelines.
Binance Considers Dubai As The Global Crypto Hub
Binance views Dubai as the global crypto hub due to the city’s crypto-friendly regulations and the possibility that CEO Changpeng “CZ” Zhao resides there. In fact, the UAE has embraced Web3, blockchain technologies, and virtual assets to develop a booming sector.
Binance sees the city as its home and scale services for institutions, retail investors, and the global virtual asset community in the midst of regulatory difficulties and strict oversight in other countries.