The world’s leading blockchain and cryptocurrency infrastructure provider, Binance, has been granted a Virtual Asset License to enable it to operate within Dubai’s ‘test-adapt-scale’ virtual asset market model as a base for expansion into the region.
Under the Virtual Asset Regulatory Authority (VARA) initial regulatory phase, which includes rigorous regulatory oversight and mandatory FATF compliance controls, Binance will be permitted to extend limited exchange products and services to pre-qualified investors and professional financial service providers.
In addition to its exchange operations, Binance will anchor a blockchain technology hub in the Dubai World Trade Centre, to seed new talent, and build a vibrant blockchain ecosystem.
The VARA issued Virtual Asset Exchange License ensures Binance will be able to operate its regional business from Dubai in the newly announced regulatory ecosystem that is subject to comprehensive legislation and internationally applicable policy frameworks.
All licensed VARA service providers will be monitored progressively to open access to the retail market.
The founder and CEO of Binance, Changpeng Zhao (CZ), said: “High standards of regulation and compliance are critical to the development and maturing of the global crypto and blockchain industry, which is why our team has been working tirelessly to demonstrate how we meet and exceed the requirements of regulators such as the Dubai Virtual Asset Regulatory Authority.”
“Binance is appreciative of being awarded this license in such a progressive regime, targeting uncompromised governance and market security. The collaborative way in which Binance has been engaged to bring proven industry compliance leading experience to the Dubai ecosystem is indicative of the unique operating model that the VARA is creating for the global industry.”
Commenting on Binance joining the new virtual asset ecosystem in Dubai, the director-general of the Dubai World Trade Centre Authority, Helal Saeed Al Marri, said: “The new VARA is symbolic of Dubai’s confidence in the potential of this future economy driver – if introduced with prudence and legitimacy.
“To this end, our regime is structured to catalyse collaboration, foster innovation, and most critically secure public interest. Onboarding Binance within the VARA is reflective of their commitment to the Dubai agenda – to provide the global industry the certainty of governance, enabled by ‘shared industry responsibility’ and legislative security for society.”
Dubai is the first global economy to have set up a specialised regulator for the virtual assets sector and will be further developing this VARA governed ecosystem of credible, reputable, and innovative international leaders.
Earlier this month, Binance was granted a crypto-asset service provider license from the Central Bank of Bahrain (CBB).
This represents Binance’s first license as a crypto-asset provider in Gulf Cooperation Council (GCC) nations and demonstrates its commitment to being a compliance-first exchange.
The crypto-asset license will allow Binance to provide crypto-asset trading, custodial services, and portfolio management to customers under the supervision of the Bahrain regulators.
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