Binance has successfully obtained a license in Dubai, reportedly acquiring a full Virtual Asset Service Provider (VASP) license.
This achievement follows Binance’s completion of the third stage of Dubai’s four-stage requirement almost a year ago.
Binance Secures Virtual Asset License in Dubai
In response to securing the license, Binance CEO Richard Teng expressed, “Securing the esteemed full market VASP license significantly underscores our unwavering commitment to driving financial progress through compliance and innovation. This milestone reflects our dedication to transparency, regulatory adherence, and sustainable growth within the dynamic digital asset sector.”
#Binance is delighted to announce the reception of a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).
This development enables us to broaden our services to both retail and institutional investors.
For more details ⤵️
— Binance (@binance) April 18, 2024
Binance’s Dubai entity, Binance FZE, had previously obtained an Operational MVP license in 2023, allowing the local exchange to serve institutional investors and engage in crypto services like derivatives trading.
With recent expansions in Asia, Dubai has emerged as a key commercial center for Binance. General Manager of Binance FZE, Alex Chehade, highlighted the significance of the full VASP license for Dubai, emphasizing the city’s forward-thinking approach in embracing the financial opportunities presented by blockchain technology.
Changpeng Zhao Relinquishes Voting Rights
Reports from Bloomberg revealed that Dubai’s regulator had a final stipulation before granting the full VASP license, requiring former Binance CEO Changpeng Zhao to relinquish his voting rights at Binance FZE. However, Teng dismissed this as mere speculation.
Despite regulatory challenges in various regions, obtaining the VASP license is seen as a substantial boost to Binance’s credibility. The exchange faced scrutiny from regulators for operating without proper authorization, leading to exits from countries like the Netherlands, Belgium, and Cyprus.
Binance has been actively working to strengthen its regulatory relationships worldwide, including reaching settlements with authorities in India and the US. These agreements involved fines for regulatory breaches and required Zhao to step down from his role as Binance’s founder, with sentencing scheduled for April 30.
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