Binance, the world’s largest cryptocurrency exchange by trading volume, has been awarded a virtual asset licence, allowing it to use Dubai’s ‘test-adapt-scale’ virtual asset market model as a springboard for regional expansion.
Binance is one of the first worldwide virtual asset exchanges to be granted a fully
regulated licence to provide regulated cryptocurrency trading to sophisticated investors.
Binance will be allowed to extend limited exchange products and services to pre-qualified investors and professional financial service providers under the Virtual Asset Regulatory Authority (VARA) initial regulatory phase, which includes rigorous regulatory oversight and mandatory The Financial Action Task Force (FATF) compliance controls.
Binance To Operate In Dubai
To get access to the retail market, all licenced VARA service providers will be monitored in stages. Binance will establish a blockchain technology hub in the Dubai World Trade Centre, in addition to its exchange activities, to foster new talent and build a thriving blockchain ecosystem.
“High standards of regulation and compliance are critical to the development and maturation 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 like the Dubai Virtual Asset Regulatory Authority,” said Binance founder and CEO Changpeng Zhao (CZ).
Binance will be allowed to conduct its regional business from Dubai under the recently announced regulatory ecosystem, which is subject to extensive legislation and internationally applicable policy frameworks, thanks to the VARA-issued Virtual Asset Exchange License.
Commenting on Binance joining the new Virtual Asset ecosystem, Helal Saeed Almarri, Director General of Dubai World Trade Centre Authority that houses VARA, 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.”