Binance Granted Full Virtual Asset License in Dubai – CM

Crypto exchange Binance announced receiving a virtual-asset services provider (VASP) license from the Virtual Assets Regulatory Authority (VARA) in Dubai. This achievement comes nearly a year after the company progressed to the third phase of the city’s four-stage licensing procedure.

Binance CEO Richard Teng said: “As we secure the esteemed full market VASP Licence, it notably amplifies our unwavering commitment to advancing the financial landscape through compliance and innovation.”

According to a VARA filing, Binance FZE, the regional division of Binance, secured an Operational MVP license in mid-2023. This authorization enabled the company to cater to institutional and qualified investors, providing services such as broker-dealer activities and trading in virtual asset derivatives.

The change from an MVP Licence to a VASP Licence permits Binance FZE to broaden its service range and product offerings, reaching out to qualified and institutional investors and the retail market. With this new license, Binance FZE can now provide individual clients with an extensive array of virtual asset services, including spot trading, margin trading (available to eligible users), and staking options.

This license permits the expansion of trading services solely to qualified and institutional investors authorized to participate in margin and derivatives trading, such as futures and options. Only individuals who fulfill the criteria for being a qualified investor have access to these services.

According to a Bloomberg report, which cited informed sources, a license stipulation required Changpeng “CZ” Zhao, the co-founder and previous CEO of Binance, to relinquish his voting rights in the company’s local division. Currently, CZ is in the United States, awaiting a sentencing hearing on April 30, following a settlement with the Department of Justice in November.