The world’s largest cryptocurrency exchange, Binance, has just been granted a license to offer prudentially regulated crypto trading services in Dubai.
This comes on heels after Binance Holdings Ltd., received an in-principal approval from the Central Bank of Bahrain (CBB) to establish itself as a crypto-asset service provider in Bahrain, last year. This move marked the first regulatory approval for a Binance entity within the Middle East or North Africa (MENA) region.
Binance Goes In Sync With VARA
On 17 March 2022, Binance announced that it has acquired a “Virtual Asset License” which will enable the platform to operate in Dubai as a base for expansion into the region. Going forward, Binance, will now be able to operate its regional business from Dubai in the newly announced regulatory ecosystem that is subject to comprehensive legislation and internationally applicable policy frameworks.
According to the official blog post, under the Virtual Asset Regulatory Authority (VARA) initial regulatory phase, Binance will be permitted to extend limited exchange products and services to pre-qualified investors and professional financial service providers.
All licensed VARA service providers will be monitored progressively so as to open access to the retail market. Additionally to its exchange operations, Binance will anchor a blockchain technology hub in the Dubai World Trade Centre, to seed new talent and build a diverse blockchain ecosystem.
How Will The New License Benefit Both Parties?
Changpeng Zhao (CZ), founder and CEO of Binance who seemed quite enthusiastic about the newly acquired license said that the entire Binance team had been working tirelessly to exceed the requirements of regulators such as the Dubai Virtual Asset Regulatory Authority. He remarked,
