The largest cryptocurrency exchange in the world – Binance – has obtained a minimal viable product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA). 1This license authorizes the company to provide some digital asset services to qualified retail and institutional investors in Dubai. Dubai’s watchdogs already awarded Binance with a license that allows it to interact with approved investors and professional financial service providers only, prior to this.
Binance secured a provisional license from Dubai’s VARA in March that permitted it to provide cryptocurrency services to certain local investors. The green light meant that the company should operate within the megalopolis’ “test-adapt-scale” virtual asset market model.
It seems like Dubai’s financial authorities are happy with Binance’s presence in the region as they have recently granted it a minimal viable product (MVP) license. This means the platform can now provide digital asset services to qualified retail and institutional investors as long as local rules are honoured. Binance’s new clientele is soon to be approved by VARA which means that users will enjoy increased levels of consumer protection.
Subsequently, the authorization allows the exchange to open a client money account with any local bank and provide a range of options which include virtual asset exchange services, cryptocurrency transfer, custody and management of virtual assets and conversion between virtual assets and fiat currencies. VARA’s Chairman – Helal Saeed Almarri – said the regulator is happy to have Binance operating within its program. With its policies, the watchdog aims to develop the best crypto experiences with maximum customer protection for domestic investors.
The most populous city in the United Arab Emirates – Dubai – has recently emerged as one of the fast-rising global cryptocurrency hubs in the Arabian diaspora. Apart from Binance, the local authorities granted a provisional operational license to CryptoCom while FTX received regulatory approval to establish its regional headquarters in Dubai.
In May, the UAE’s biggest flight company – Emirates Airline – unveiled plans to embrace bitcoin as a payment method while blockchain technology will be used to trace aircraft records. Last week, the luxurious five-star hotel Palazzo Versace Dubai introduced the option for clients to pay for accommodation, dining, and spa services in digital assets instead of fiat. The supported cryptocurrencies are Bitcoin (BTC), Ether (ETH), and Binance Coin (BNB).
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