Binance fulfilled the prerequisites established after obtaining a preparatory license in September 2022.
Binance, the world’s largest cryptocurrency exchange, has achieved a significant milestone by obtaining an operational license in Dubai, marking the third out of four steps required for full regulation in the jurisdiction. With this license, eligible users in Dubai gain access to authorized services provided by Binance.
This achievement follows Binance’s previous success in securing a Minimal Viable Product (MVP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) in September 2022. The MVP license granted the exchange permission to establish a domestic bank account for holding clients’ funds locally, operate a cryptocurrency exchange, and offer payments and custody services.
The recent progression from a Provisional License to an Operational MVP License is seen as a major advancement, enabling eligible users in Dubai to safely convert virtual assets to fiat under VARA-designated standards, which align with the intergovernmental Financial Action Task Force guidelines.
Dubai’s licensing process consists of four stages, and Binance has successfully cleared three of them. The final stage, the Full Market Product (FMP) license, remains pending, which is expected to be granted after Binance demonstrates full compliance with all regulatory rules.
Despite its success in Dubai, Binance has faced challenges in other regions. The exchange plans to re-enter the Japanese market while navigating setbacks in Germany, Austria, Belgium, and the Netherlands. Additionally, Binance’s U.S. arm is currently facing a legal lawsuit from regulators due to allegations of operating an unregistered exchange.
The operational license in Dubai reinforces Binance’s commitment to adhering to regulatory requirements and strengthens its position in the global cryptocurrency market. As it continues to pursue further licenses and compliance, Binance aims to expand its services to more users while ensuring regulatory compliance in various jurisdictions worldwide.