The Operational Minimum Viable Product (MVP) license has been given to Binance FZE, the Dubai affiliate of cryptocurrency exchange Binance, by Dubai’s Virtual Assets Regulatory Authority (VARA).
Binance FZE Attracts Attention by Being the First Exchange to Have an Operational MVP License in Dubai
With this significant accomplishment, Binance FZE becomes the first exchange in Dubai to be granted such a license, enabling it to provide broker-dealer and virtual asset exchange services initially to the region’s institutional and qualified retail investors. Binance first obtained a provisional MVP license in March 2022, and then in September of the same year, it obtained a preliminary MVP license. With this most recent development, the exchange is now allowed to operate in two licensed activities, limited to institutional and qualified retail investors in Dubai: virtual asset exchange services and virtual asset broker-dealer services.
The Impact of Obtaining an MVP License on Binance
This operational MVP license was granted as a result of Binance’s dedication to creating a compliant exchange in partnership with regional regulators and within the special legal framework in Dubai for Virtual Asset Service Providers (VASPs). Additionally, it enables qualified users in the city to access permitted services, such as securely converting virtual assets to fiat in accordance with VARA-designated criteria that abide by the intergovernmental Financial Action Task Force.
A booming economy has resulted from the United Arab Emirates’ (UAE) enthusiastic adoption of blockchain technology, with security and innovation as its two main drivers. Binance’s participation in VARA’s ecosystem for virtual assets and adherence to Dubai’s regulatory framework demonstrates its dedication to advancing the UAE’s goal for the virtual asset market.
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