The world’s largest cryptocurrency exchange – Binance – has received a Minimum Viable Product (MVP) license from the Dubai Virtual Assets Regulatory Authority (VARA).
The authorization enables the company to begin offering a range of digital asset services to qualified retail and institutional investors in the region.
Before that, regulators in Dubai granted Binance a license allowing it to interact only with approved investors and professional financial service providers.
Dubai Says Yes (Again)
In March, Binance received a temporary license from Dubai’s VARA, allowing it to offer cryptocurrency services to certain types of local investors. The green light means companies should operate under the metropolitan “test-fit-scale” virtual asset market model, a process that domestic regulators have vowed to strictly follow.
Dubai authorities seem happy with Binance’s presence in the region since recently indeed It is a Minimum Viable Product (MVP) license. As a result, the platform can now provide digital asset services to qualified retail and institutional investors in compliance with local rules.
New clients of Binance will be approved by VARA, which means users will benefit from a higher level of consumer protection.
Subsequently, the MVP authorization allows the exchange to open client money accounts with local banks and offer a variety of options. These include virtual asset exchange services, cryptocurrency transfers, custody and management of digital assets, and conversion between virtual assets and fiat currencies.
VARA chairman Helal Saeed Almarri said the regulator is “pleased” to have Binance operating in its scheme. He added that the regulator’s policy aims to provide domestic investors with the best possible crypto experience while maximizing customer protection.
The head of Binance, Changpeng Zhao, also spoke about the matter, saying that the main goal of the platform is to achieve responsible innovation, allow users to enter the crypto world with minimal risk, and cooperate with regulators.
“We strongly believe that there is an important opportunity to work with our industry peers to develop consistent standards of implementation globally, as we have done in Dubai,” he concluded.
Dubai’s Pro-Crypto Vision
The most populous city in the United Arab Emirates – Dubai – has recently become one of the global cryptocurrency hubs.
In addition to Binance, local authorities also granted a temporary 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 use bitcoin as a payment method, while blockchain technology could be used to track aircraft records.
Last week, the luxury five-star hotel Palazzo Versace Dubai enabled customers to pay for accommodation, dining and spa services in digital assets instead of fiat currencies. The supported cryptocurrencies are Bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB).
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