Binance obtains MVP licence from Dubai's virtual asset regulator

Binance has bolstered its position in the Middle East with a new Minimum Viable Product (MVP) license from Dubai's Virtual Assets Regulatory Authority (VARA), the cryptocurrency exchange announced 3 days ago.

The new license came after Dubai's new digital asset regulator granted a provisional license to the cryptocurrency exchange earlier in March.

"VARA's unique operating model sets a benchmark for the global industry, and this latest registration is recognition of our compliance and security processes under the new regulatory framework," says Binance CEO Chang Zhao.

With the MVP license, Binance can now offer a range of services related to approved virtual assets to qualified retail and institutional investors. Also, the exchange can open a client account with a national bank.

Among the services it will be able to offer thanks to this license are virtual asset exchange services, crypto-to-fiat conversions, cryptocurrency transfers, custodial and management services, as well as token offerings. . Additionally, the license will allow Binance to offer cryptocurrency payment and funds transfer services.

"The VARA regime seeks to strike an effective balance between value creation and risk mitigation, enabling innovation in the open market while ensuring the protection of economically vulnerable people," adds VARA Chairman Helal Almarri.

The Cryptocurrency Hub in the Middle East
VARA was established last March under the Dubai Virtual Assets Regulation Act, with the aim of making Dubai one of the global crypto hubs. The move has been successful as several major crypto brands, including Binance, Crypto.com, and Blockchain.com, have been licensed by the jurisdiction.

Binance received the MVP license as the exchange changed its operational strategies and obtained several regulatory licenses. Besides Dubai, the exchange is now regulated in Italy, France, and Spain.

"Our listing in Dubai reflects the country's progressive stance on blockchain technology and its willingness to embrace this sector through collaboration," says Dubai Managing Director at Binance, Alex Chehade. "We look forward to our continued partnership as we build on our team and operations in Dubai to roll out additional services, including local banking capabilities and enhanced products."