Binance secures viable product licenses in UAE

The Announcement

Binance receives approval from the Dubai regulator as a “viable product.”

Binance announced that Dubai’s Virtual Asset Regulatory Authority (VARA) had permitted it to join the Minimal Viable Product (MVP).

So, Binance can offer various services related to virtual assets that VARA has approved to qualified retail and institutional investors in Dubai, as long as they follow VARA’s provider guidelines.

In the MVP phase, only a small number of international players are allowed. They can do business if they follow VARA’s rules for reducing risk.

Goals of Dubai’s Virtual Asset Regulatory Authority (VARA)

Helal Almery, chairman of VARA, said, “The goal of the VARA regime is to find a good balance between creating value and reducing risk, allowing open market innovation while protecting those who are economically weak.”

VARA gave a temporary license to Binance in March.

By switching to an MVP license, the company can open a client money account with a domestic bank and provide several services.

After the license has been upgraded, the company plans to offer different services for virtual assets, such as exchange, conversion between virtual assets and fiat currencies, transfer, custody, and management, as well as payment and remittance services for virtual assets.

Binance Trades on Regulated Platform in UAE

Binance wants to work with clients whom VARA has given the green light; this means that users will be better protected when they trade on a regulated platform in Dubai that VARA oversees.

Changpeng Zhao, the founder and CEO of Binance, says, “We firmly believe that there is a significant opportunity to work with our industry peers to develop consistent implementation standards worldwide, as we have been doing in Dubai.”

Since getting “in principle” approval from the Abu Dhabi Global Market in April to work as a broker-dealer in virtual assets in the capital, Binance has been trying to strengthen its ties in the Middle East and Europe.

In 2017, Binance started in China, and in March, the Central Bank of Bahrain permitted it to provide services for crypto assets in the country.

The company says that getting the MVP license from VARA is a big step in the right direction.

It comes after the company’s regional operations in the Middle East, North Africa, Italy, France, and Spain were registered.

“Our registration in Dubai shows how forward-thinking the country is about blockchain technology and how willing it is to work with others in this area,” says Alexander Chehade, general manager of Binance Dubai.

The first law of its kind, the Dubai Virtual Asset Regulation Law, made it possible for VARA to start up in March 2022.

The governing body wants to write new laws to protect investors and set standards for the whole industry.

VARA in Metaverse

VARA opened its Metaverse HQ in May to show it was joining the metaverse.

It was the first government agency to work in the growing digital space as a result.

As part of its ongoing efforts to use the metaverse, Dubai’s government announced a digital-oriented strategy to boost the emirate’s economy by $4 billion and create 40,000 jobs over the next five years.

This project’s goal is to help build the metaverse in every way, from making rules and software to figuring out how the government can use these services.

Licensed Crypto Trading Platforms in Dubai

After setting up a regulatory framework, Dubai has given licenses to several crypto trading platforms over the past few months.

They are BitOasis, Bybit, FTX Europe, CoinMena in Bahrain, which follows Sharia law, and Binance, the biggest cryptocurrency exchange in the world.