The licence is a vital milestone which follows several registrations for Binance’s local entities in the MENA region and across Europe in Italy, France and Spain. Global blockchain services provider Binance has acquired a minimal viable product (MVP) licence from Dubai’s Virtual Asset Regulatory Authority (VARA) after getting its hands on provisional licence earlier in March this year.
The MVP licence is important because it permits Binance to provide an approved range of virtual asset related services to properly qualified retail and institutional investors in Dubai within its internationally benchmarked legal framework for virtual asset service providers.
Binance will cater to clients who are approved by VARA. This way customers can now profit from the local banking channels unlocked by this first regulatory license of this kind. Users will furthermore benefit from enhanced levels of consumer protection by trading on a platform that is regulated under the supervision of VARA in Dubai.
With the conversion to a MVP licence, Binance can open a client money account with a domestic bank and provide services to eligible customers. These services include virtual asset exchange services, transformation between virtual assets and fiat currencies, transfer of virtual assets, control and management of virtual assets, virtual token offering and trading services, virtual assets repayments and remittance services.
The licence is a vital landmark that follows numerous registrations for local entities of Binance in the MENA region and across Europe in Italy, France and Spain.
Helal Saeed Almarri, the chairman of VARA said that they are all very pleased to have Binance licensed to perform within the VARA MVP Programme. He also said that the VARA regime aspires to strike a useful balance between value creation and risk mitigation by facilitating open market innovation while ensuring security for the economically vulnerable. According to Helal Saeed Almarri, the MVP Phase, is created for select global players across the value chain, who are committed to responsible industry participation and VARA looks forward to Binance becoming an active contributor, supporting Dubai’s commitment to building a next-gen secure ecosystem for this future economy.
When asked for a response, Changpeng Zhao, founder and CEO of Binance said that at Binance, they accept and welcome laws that are globally consistent, enable reliable innovation, protect users, and offer them choice. He has acknowledged that VARA’s unique operating model is establishing a benchmark for the global industry. According to him, this most recent registration is an acknowledgement of their compliance and safety processes in the recent regulatory framework. He believes, at Binance, there is a significant opportunity to operate with their industry peers in order to develop consistent implementation standards around the world as they have been doing in Dubai.
Alexander Chehade, Binance Dubai GM, added that their registration in Dubai reflects the progressive stance of the country on blockchain technology and its readiness to take on this sector through collaboration. He stated that they are looking forward to a continued partnership as Binance builds upon their team and procedures in Dubai to roll out additional assistance including local banking capabilities and enhanced products.