Binance has finally secured a license in Dubai. Multiple reports claim the exchange received a full Virtual Asset Service Provider (VASP) license.
This comes almost a year after Binance completed the third part of Dubai’s four-stage requirement.
Binance Secures Virtual Asset License in Dubai
Binance CEO Richard Teng reacted to the license. He said: “As we secure the esteemed full market VASP license, it notably amplifies our unwavering commitment to advancing the financial landscape through compliance and innovation. This achievement embodies our dedication to transparency, regulatory compliance, and responsible growth in the dynamic digital asset domain.”
#Binance is proud to have received a Virtual Asset Service Provider (VASP) licence from Dubai’s Virtual Assets Regulatory Authority (VARA).
This milestone allows us to extend our services to the retail market alongside qualified and institutional investors.
Read more ⤵️
— Binance (@binance) April 18, 2024
Binance’s Dubai expression, Binance FZE, secured an Operational MVP license in 2023. The license enabled the local exchange to cater to institutional investors. In addition, the license permitted Binance FZE to engage in crypto exchange services such as derivatives trading.
Binance has expanded its influence into Asia in recent months, with Dubai identified as a new commercial hub. Binance FZE General Manager Alex Chehade remarked that the full VASP license was a smart move for Dubai. Chehade noted that the license strengthens Dubai’s position “as a forward-thinking city, acknowledging and embracing the financial potential that blockchain technology brings.”
Changpeng Zhao Gave up his Voting Rights
Sources from Bloomberg claim Dubai’s regulator had one final request before granting the full VASP license. They demanded that the former Binance CEO, Changpeng Zhao, give up his voting rights at Binance FZE. Teng, however, described the news as “pure speculation.”
Nevertheless, crypto users believe the VASP license is a huge win for Binance’s credibility. The exchange endured hostility from different regulators for allegedly operating without clearance. Binance had to exit the Netherlands, Belgium, and Cyprus.
The crypto exchange is gradually strengthening its ties with regulators globally. Binance recently agreed to pay a fine in India. Local authorities claim the exchange flouted local laws. And operated without being fully registered.
The exchange also agreed to a settlement with US officials. The exchange allegedly failed to install sufficient anti-money laundering policies. The settlement also required Zhao to step down from his role as Binance’s founder. The crypto billionaire will be sentenced on April 30.
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