Cryptocurrency giant Binance has secured a full Virtual Asset Service Provider (VASP) license from Dubai's Virtual Assets Regulatory Authority (VARA). This significant development comes after Binance initially received a Minimum Viable Product (MVP) license in July 2023. The VASP license allows Binance's Dubai subsidiary, Binance FZE, to expand its offerings in the United Arab Emirates (UAE).
What this means for Binance:
- Wider service range: Binance FZE can now offer a broader range of digital asset services in the UAE, including spot trading, lending and borrowing, and staking. Previously, these services may have been restricted under the MVP license.
- Catering to more users: The VASP license paves the way for Binance FZE to serve not just qualified investors and institutions, but also the retail market in the UAE.
- Commitment to compliance: Securing the VASP license demonstrates Binance's dedication to regulatory compliance and responsible growth within the cryptocurrency industry.
What this means for UAE users:
- Transition to local exchange: UAE users who were previously using the global Binance platform will likely be transitioned to the VARA-regulated Binance FZE exchange.
- Potential benefits: The shift to a locally regulated exchange could offer UAE users certain advantages, such as increased transparency and consumer protection measures.
Overall, Binance's acquisition of the VASP license signifies a major step towards regional compliance for the cryptocurrency exchange. It also highlights Dubai's growing role as a hub for digital asset innovation.
June 2024, Cryptoniteuae