Dubai, United Arab Emirates, 19 September 2022: Binance, the leading global blockchain services provider, has announced today that it has received the Minimal Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA), following the issuance of its provisional license in March 2022. The MVP license means that Binance can offer an approved range of virtual asset related services to suitably qualified retail and institutional investors in Dubai within an internationally benchmarked legislative framework for virtual asset service providers (VASPs). Committed to strong investor and market protection principles, Binance will cater to a clientele approved by VARA who can now benefit from the local banking channels unlocked by this first-of-its-kind regulatory license. Users will benefit from increased levels of consumer protection by trading on a regulated platform under the supervision of VARA in Dubai.
The transition to an MVP License, from a Provisional License received earlier this year, means Binance can open a client money account with a domestic bank and provide the following services to qualified customers:
VARA is the world's first specialised regulator for the Virtual Assets sector. Established in March 2022, following the effect of Law No.4 of 2022, VARA is responsible by decree for licensing and regulating the Virtual Asset sector in the Emirate of Dubai and its free zone territories [excluding DIFC], and oversees all licensing requirements and applications for authorisation of Virtual Asset activities under UAE law. VARA plays a central role in creating Dubai's advanced legal framework to protect investors and establish international standards for Virtual Asset industry governance, while supporting the vision for a borderless economy.
This license is a major milestone that follows a number of registrations for Binance’s local entities in the MENA region and across Europe in Italy, France and Spain. It also further validates Binance's desire to be a regulation-led platform with robust compliance and security controls that have consumer protection and market integrity at its core.
His Excellency Helal Saeed Almarri, Chairman of VARA said, “We are pleased to have Binance licensed to operate within the VARA MVP Programme. The VARA regime aims to strike an effective balance between value creation and risk mitigation, enabling open market innovation while assuring protection for the economically vulnerable. The MVP Phase is designed for select global players across the value chain that are committed to responsible industry participation and VARA looks forward to Binance’s inclusion as an active contributor in the MVP Phase, helping to reinforce Dubai’s commitment towards creating a next-gen secure ecosystem for this future economy.”
Changpeng Zhao (CZ), founder and CEO of Binance, commented: “At Binance, we welcome regulations that are globally consistent, enable responsible innovation, protect users, and give them choice. VARA’s unique operating model is setting a benchmark for the global industry, and this most recent registration is an acknowledgement of our compliance and safety processes in the new regulatory framework. 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.”
Alexander Chehade, Binance’s Dubai General Manager, noted: “Our registration in Dubai is a reflection of the country’s progressive stance on blockchain technology and its willingness to embrace this sector through collaboration. We look forward to continued partnership as we build upon our team and operations in Dubai to roll out additional services, including local banking capabilities and enhanced products.”
This market notice is being issued by Dubai’s Virtual Assets Regulatory Authority (VARA) to highlight to all industry stakeholders, and consumers that the deadline for VA sector entities to engage in the regulatory licence application process has now elapsed. As formally announced on 05.November further to multiple advisories since Q2-2023, entities operating within the virtual asset domain were required to commence procedural engagement with VARA on/or before 17.November.2023.