The authorization enables the company to start providing a range of digital asset services to qualified retail and institutional investors in the region.
Prior to that, Dubai’s watchdogs awarded Binance with a license that allowed it to interact only with approved investors and professional financial service providers.
Dubai Said ‘Yes’ (Again)
In March this year, Binance secured a provisional license from Dubai’s VARA that permitted it to provide cryptocurrency services to a certain type of local investors. The green light meant that the company should operate within the megalopolis’ “test-adapt-scale” virtual asset market model, while the domestic regulator vowed to observe the process strictly.
It seems like Dubai’s authorities are happy with Binance’s presence in the region since they recently granted it a minimal viable product (MVP) license. Thus, the platform can now provide digital asset services to qualified retail and institutional investors as long as those abide by local rules.
Binance’s new clientele will be approved by VARA, meaning that users will benefit from increased levels of consumer protection.
Subsequently, the MVP authorization allowed the exchange to open a client money account with a local bank and provide a variety of options. These include virtual asset exchange services, transfer of cryptocurrencies, custody and management of digital assets, and conversion between virtual assets and fiat currencies.
VARA’s Chairman – Helal Saeed Almarri – said the regulator is “pleased” to have Binance operating within its program. With its policies, the watchdog aims to enable the best crypto experiences for domestic investors combined with maximum customer protection, he added.
Speaking on the matter was also the head of Binance – Changpeng Zhao – who said the platform’s main goal is to enable responsible innovation, give users access to the crypto world at minimum risk and cooperate with regulators.
“We strongly believe there is a significant opportunity to work with our industry peers to develop consistent implementation standards around the world as we have been doing in Dubai,” he concluded.
Dubai’s Pro-Crypto Vision
The most populous city in the United Arab Emirates – Dubai – has recently emerged as one of the global cryptocurrency hubs.
Apart from Binance, the local authorities granted a provisional license to CryptoCom, while FTX received regulatory approval to establish a regional headquarter in Dubai.
In May, the UAE’s biggest airline company – Emirates Airline – revealed plans to embrace bitcoin as a payment method, while blockchain technology could be used to trace records of aircrafts.
Last week, the luxurious five-star hotel Palazzo Versace Dubai enabled 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).