The world’s largest cryptocurrency exchange, Binance, received a minimum viable product (MVP) license from the Virtual Assets Regulatory Authority (VARA) in Dubai.
The authorization allows the company to begin offering a range of digital asset services to qualified retail and institutional investors in the region.
Before that, Dubai’s watchdogs granted Binance a license that allowed it to interact only with approved investors and professional financial service providers.
Dubai Said “Yes” (Again)
In March of this year, Binance obtained a provisional license from Dubai’s VARA allowing it to offer cryptocurrency services to certain types of local investors. The green light meant the company would have to operate within the megalopolis’ “test-fit-to-scale” virtual asset market model, while the national regulator pledged to watch the process strictly.
Dubai authorities seem happy with Binance’s presence in the region as they recently granted it a Minimum Viable Product (MVP) license. Thus, the platform can now provide digital asset services to qualified retail and institutional investors as long as they comply with local regulations.
Binance’s new clientele will be approved by VARA, meaning users will benefit from increased levels of consumer protection.
Subsequently, the MVP authorization allowed the exchange to open a customer money account with a local bank and offer a variety of options. These include virtual asset exchange services, cryptocurrency transfer, digital asset custody and management, and conversion between virtual assets and fiat currencies.
VARA President Helal Saeed Almarri said the regulator is “delighted” 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.
Also speaking on the topic was the head of Binance, Changpeng Zhao, who said that the main goal of the platform is to enable responsible innovation, give users access to the crypto world with minimal 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.
Pro-Crypto Vision of Dubai
The most populous city in the United Arab Emirates, Dubai, has recently become one of the world’s cryptocurrency hubs.
Apart from Binance, local authorities granted a provisional license to CryptoCom, while FTX received regulatory approval to establish a regional headquarters in Dubai.
In May, the UAE’s largest airline, Emirates Airline, revealed plans to adopt bitcoin as a payment method, while blockchain technology could be used to track aircraft records.
Last week, the luxurious five-star hotel Palazzo Versace Dubai allowed guests to pay for accommodation, dining and spa services in digital assets instead of fiat. Supported cryptocurrencies are Bitcoin (BTC), Ether (ETH) and Binance Coin (BNB).
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