Binance Holdings Ltd., the largest digital asset exchange globally, has secured a Virtual Asset Service Provider (VASP) license in Dubai. This achievement follows co-founder Changpeng “CZ” Zhao’s agreement to relinquish his voting control within the local entity, as per undisclosed sources cited in the Bloomberg report.

The issuance of this highly anticipated license marks a significant milestone for Binance, which has encountered various regulatory hurdles in recent years. Notably, the exchange faced substantial penalties of $4.3 billion from U.S. authorities in November, leading to Zhao’s mandatory resignation as CEO.

With the VASP license in hand, Binance can now expand its service offerings to customers in Dubai, including retail cryptocurrency trading. Previously, Binance FZE, the local unit, had been operating under “Operational MVP” licenses for broker-dealer and exchange services since mid-2023.

Before granting the complete VASP license, the Virtual Assets Regulatory Authority (VARA) mandated Zhao to cede his voting control over Binance FZE. This requirement aimed to ensure alignment with the terms of the agreement Binance struck with U.S. authorities, resulting in Zhao stepping down as CEO.

Following the resolution of the voting control issue, Binance and VARA conducted a thorough evaluation of the exchange’s planned products in Dubai. Despite Zhao retaining ownership of Binance FZE’s parent company based in Abu Dhabi, the VASP license was successfully obtained.

This development comes as Binance’s competitors like OKX and Crypto.com have already secured similar licenses, enabling them to cater to a broader clientele in Dubai.

Richard Teng, Binance’s newly appointed CEO, has committed to enhancing the company’s compliance standards and regulatory relationships globally. Amidst regulatory challenges in countries like India and Belgium, Teng is exploring potential jurisdictions to establish a global operational base for Binance, which currently lacks a formal headquarters.

Recent events include the detention of a Binance executive and another official in Nigeria in mid-March, with the company subsequently seeking their release earlier this month.