Dubai’s Virtual Asset Regulatory Authority (VARA) has granted the Minimal Viable Product (MVP) license to the world’s largest cryptocurrency exchange, Binance, following which it can offer crypto-related services to both retail and institutional investors in the United Arab Emirates (UAE) from now onwards.
Binance was issued a provisional license in March 2022.
Opportunity to offer crypto-related services
Following the MVA license, Binance can now offer an approved range of crypto-related services to qualified retail and institutional investors in Dubai, a clientele approved by VARA.
The exchange can now offer a range of crypto-related services such as exchange, conversion, transfer, trading, management, payment, and remittance to its customers.
“VARA’s unique operating model is setting a benchmark for the global industry, and this most recent registration is an acknowledgment of our compliance and safety processes in the new regulatory framework,” said Changpeng Zhao (CZ), Binance founder and CEO.
VARA Dubai’s prominent crypto regulatory body
The Virtual Asset Regulatory Authority (VARA) was established by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai in March 2022.
He has also introduced rules and regulations related to cryptocurrency and other virtual assets. VARA necessitates crypto exchanges and users to register with it before engaging in crypto-related activities.
In July 2022, the Prime Minister announced a new metaverse strategy on Twitter, aimed at generating $4 billion for the economy through the growth of the blockchain and crypto industry. He added that this venture would generate 40,000 virtual jobs.
The royal family is keen to develop the UAE and Dubai as global players in the cryptocurrency industry and it has consistently been taking steps to create an encouraging environment for the industry here.
Since the establishment of VARA, a number of cryptocurrency exchanges have been granted regulatory approval in the UAE by VARA.
On 3 June, Crypto.com received a provisional Virtual Asset MVP license from VARA. On 21 June, Hex Trust received the same. On 14 July, the crypto trading application OKX was provided the same.
On 29 July, FZE, a division of the cryptocurrency exchange FTX, received the MVP license. Only recently, the London-based crypto exchange and wallet Blockchain.com was granted a provisional license on 9 September.