2024-04-19
Binance, the world's leading cryptocurrency exchange in terms of trading volume, has announced that it has obtained a full license as a virtual-asset services provider (VASP) from Dubai's Virtual Assets Regulatory Authority (VARA).
This milestone comes nearly a year after Binance secured a third-stage license in the emirate's four-stage approval process.
In a statement, CEO Richard Teng expressed the significance of this achievement, stating, "Securing the highly regarded full market VASP license underscores our unwavering commitment to driving progress in the financial industry through compliance and innovation.
This accomplishment reflects our dedication to transparency, regulatory adherence, and responsible growth within the dynamic digital assets sector."
Binance's local subsidiary, Binance FZE, had previously obtained an Operational MVP license in mid-2023, as indicated in a filing with VARA.
This license authorized Binance FZE to cater to institutional and qualified investors, providing broker-dealer services and facilitating exchange activities, including virtual-asset derivatives trading.
Alex Chehade, the General Manager of Binance FZE, emphasized the significance of the full VASP license in positioning Dubai as a forward-thinking city that recognizes and embraces the financial opportunities presented by blockchain technology.
According to Bloomberg, one condition of the license required Binance's co-founder and former CEO, Changpeng "CZ" Zhao, to relinquish voting control over the local subsidiary.
CZ is currently in the United States, awaiting sentencing after reaching a settlement with the Department of Justice in November. His sentencing is scheduled for April 30.
At the time of publication, both Binance and VARA had not responded to requests for comment regarding these conditions.
