Binance obtains operational license in Dubai.

Binance obtains operational license in Dubai.

The Blockchain Industry: Binance Secures License in Dubai

Cryptocurrency exchange giant Binance has achieved a significant milestone in the blockchain industry by obtaining an operational license in Dubai, marking the completion of the third step in its endeavor to become fully regulated in the jurisdiction1. This achievement allows eligible users in Dubai to access authorized services provided by Binance2.

Background and Progression

Binance, recognized as the world’s largest cryptocurrency exchange, received a Minimal Viable Product (MVP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) last year, following a four-stage licensing process in Dubai3. The MVP license enabled Binance to have a domestic bank account to hold clients’ funds, operate a crypto exchange, and offer payment and custody services4.

The company’s successful progression from the Provisional License, granted in 2022, to an Operational MVP License demonstrates its adherence to the regulations set by VARA5. This enables eligible users in Dubai to safely convert virtual assets into fiat based on VARA’s designated standards that comply with the guidelines laid out by the intergovernmental Financial Action Task Force6.

The Licensing Process in Dubai

Dubai’s licensing process for cryptocurrency businesses consists of four stages7. Binance has already cleared three of those stages, with the Full Market Product (FMP) license remaining8. The acquisition of the FMP license is contingent on Binance’s ability to demonstrate full compliance with all the rules and regulations established by VARA9.

International Expansion and Regulatory Challenges

Binance’s successful licensure in Dubai comes at a time when the exchange is navigating various regulatory challenges worldwide10. While planning to re-enter the Japanese market, Binance has faced setbacks in Germany, Austria, Belgium, and the Netherlands11. Additionally, Binance’s U.S. arm is currently facing legal action by regulators for operating an unregistered exchange12.

Conclusion

Binance’s achievement of an operational license in Dubai underscores its commitment to regulatory compliance in the blockchain industry. By securing this license, Binance can provide its authorized services to eligible users in Dubai, thereby promoting the adoption and integration of blockchain technology within the region’s financial ecosystem. This success in Dubai is a significant milestone for Binance as it strives to expand its presence globally, overcoming regulatory challenges in its pursuit of delivering innovative blockchain-based solutions.

Read More: Dubai’s Crypto Industry Welcomes New Licensing Regime Amid Global Regulatory Uncertainty

Edited by Parikshit Mishra.


  1. Binance has won an operational license in Dubai, step three of four to be fully regulated in the jurisdiction.↩︎

  2. Binance has won an operational license in Dubai, step three of four to be fully regulated in the jurisdiction.↩︎

  3. Binance has won an operational license in Dubai, step three of four to be fully regulated in the jurisdiction.↩︎

  4. Binance received a Minimal Viable Product (MVP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) allowing it to open a domestic bank account to hold clients’ funds locally, operate a crypto exchange, and offer payments and custody services.↩︎

  5. “The progression from the Provisional License, granted in 2022, to an Operational MVP License, means eligible users in Dubai will now be able to access authorized services, including the ability to safely convert virtual assets to fiat under VARA-designated standards compliant with the intergovernmental Financial Action Task Force,” a Binance blog said.↩︎

  6. “The progression from the Provisional License, granted in 2022, to an Operational MVP License, means eligible users in Dubai will now be able to access authorized services, including the ability to safely convert virtual assets to fiat under VARA-designated standards compliant with the intergovernmental Financial Action Task Force,” a Binance blog said.↩︎

  7. “The progression from the Provisional License, granted in 2022, to an Operational MVP License, means eligible users in Dubai will now be able to access authorized services, including the ability to safely convert virtual assets to fiat under VARA-designated standards compliant with the intergovernmental Financial Action Task Force,” a Binance blog said.↩︎

  8. “The progression from the Provisional License, granted in 2022, to an Operational MVP License, means eligible users in Dubai will now be able to access authorized services, including the ability to safely convert virtual assets to fiat under VARA-designated standards compliant with the intergovernmental Financial Action Task Force,” a Binance blog said.↩︎

  9. “The progression from the Provisional License, granted in 2022, to an Operational MVP License, means eligible users in Dubai will now be able to access authorized services, including the ability to safely convert virtual assets to fiat under VARA-designated standards compliant with the intergovernmental Financial Action Task Force,” a Binance blog said.↩︎

  10. “The progression from the Provisional License, granted in 2022, to an Operational MVP License, means eligible users in Dubai will now be able to access authorized services, including the ability to safely convert virtual assets to fiat under VARA-designated standards compliant with the intergovernmental Financial Action Task Force,” a Binance blog said.↩︎

  11. “The progression from the Provisional License, granted in 2022, to an Operational MVP License, means eligible users in Dubai will now be able to access authorized services, including the ability to safely convert virtual assets to fiat under VARA-designated standards compliant with the intergovernmental Financial Action Task Force,” a Binance blog said.↩︎

  12. “The progression from the Provisional License, granted in 2022, to an Operational MVP License, means eligible users in Dubai will now be able to access authorized services, including the ability to safely convert virtual assets to fiat under VARA-designated standards compliant with the intergovernmental Financial Action Task Force,” a Binance blog said.↩︎

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