Binance, the juggernaut of crypto asset exchanges, is once again in the spotlight. This time, with a new resounding success: it has just won an operating license in Dubai, thus becoming the very first Exchange to obtain an MVP license issued by the Virtual Assets Regulatory Authority (VARA). Now users will have the long-awaited opportunity to access authorized services.
Binance makes history: An operational license in Dubai!
Last year, Binance achieved a major milestone when it received a Minimum Viable Product (MVP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). This license already allowed it to open a national bank account to hold its customers’ funds locally, to manage a crypto exchange, and to offer payment and custody services.
Since obtaining this preparatory license, Binance has worked closely with the regulatory authorities to meet all the conditions necessary to obtain the operational license, an essential step in its journey.
It is therefore with pride that Binance has announcement in a statement on its official blog to have obtained the coveted operational license. It thus becomes the first exchange in the world to obtain an operational MVP license from the Virtual Assets Regulatory Authority (VARA) in Dubai.
With this operational license, eligible users in Dubai will now be able to enjoy all services authorized by Binance. In particular, they will have the ability to securely convert virtual assets into fiat, in accordance with standards designated by VARA and in compliance with the Intergovernmental Financial Action Task Force.
” The progression from the interim license, granted in 2022, to an operational MVP license, means that eligible users in Dubai will now be able to access licensed services, including the ability to securely convert virtual assets to fiat according to standards designated by VARA Compliant with the Intergovernmental Financial Action Task Force. »
Towards full regulation!
In fact, Dubai has implemented a four-step licensing process specifically for cryptocurrency players. With the recent receipt of the operational license, Binance has successfully completed three of these milestones. All that remains is to obtain the license for the full market product (FMP), which will be issued after a complete demonstration of compliance with the regulatory rules in force.
The operational license won by Binance in Dubai is of strategic importance for the exchange platform. However, the win comes as the Exchange plans to return to Japan after suffering setbacks in Germany, Austria, Belgium and the Netherlands. Separately, the US arm of Binance has faced lawsuits from regulators for operating an unregistered exchange.
In short, obtaining the operational license in Dubai marks a significant step for Binance in its quest for full regulation. This success could nevertheless strengthen the company’s position on the international market and increase investor confidence.
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