Binance Expands Crypto Offerings in Dubai

• Binance obtains an operational MVP license from Dubai's Virtual Asset Regulatory Authority.
• The license allows Binance to offer crypto services to institutional and qualified retail investors in Dubai.
• Eligible investors in Dubai can access services such as crypto-to-fiat exchanges.

Binance, the major cryptocurrency exchange, has achieved a significant milestone in its relationship with regulators in the UAE by obtaining a new license in Dubai. The license has been issued to Binance's Dubai-based subsidiary known as Binance FZE. It represents an operational MVP license and has been granted by Dubai's Virtual Asset Regulatory Authority (VARA).

This new license enables Binance to provide cryptocurrency exchange and virtual asset broker-dealer services in Dubai. Institutional and qualified retail investors are currently the only addressable segments. To be considered a "qualified retail client" in Dubai, investors must meet specific criteria. These include:

• Being at least 21 years old.
• Evidencing net liquid assets of 500,000 UAE dirhams ($136,000) through supporting documents like bank statements.

Eligible investors in Dubai can now access authorized services compliant with the FATF. Binance offerings include services such as crypto-to-fiat exchange and conversions, transfer and custody, brokerage, and virtual asset payments and remittance services.

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The Timeline of Binance Operations in Dubai

This new milestone builds on Binance's progression from the provisional MVP license issued in March 2022. Binance also obtained a preparatory MVP license in September 2022. However, the company had to provide additional information to VARA in April 2023 to comply with tightening regulatory requirements.

The recent license acquisition by Binance comes in the wake of the VARA's suspension of the operational license of another crypto exchange, BitOasis, for non-compliance with mandated conditions. As Binance prepares for the next phase of licensing, it aims to maintain compliance with VARA's framework. This includes compulsory rulebooks related to general operations, compliance, and market conduct requirements.