Binance, recognized as the world’s leading cryptocurrency exchange in terms of trading volume, has announced the acquisition of a full virtual-asset services provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), marking a significant milestone nearly a year after embarking on the emirate’s rigorous four-stage process.
CEO Richard Teng emphasized the achievement’s significance, stating, “As we secure the esteemed full market VASP Licence, it notably amplifies our unwavering commitment to advancing the financial landscape through compliance and innovation.” He added, “This achievement embodies our dedication to transparency, regulatory compliance, and responsible growth in the dynamic digital assets domain.”
According to VARA filings, Binance’s local entity, Binance FZE, previously obtained an Operational MVP license in mid-2023. This initial license permitted the provision of services to institutional investors and qualified investors, encompassing broker-dealer services and exchange services such as virtual-asset derivatives trading.
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Alex Chehade, General Manager of Binance FZE, highlighted the significance of the full VASP license, stating, “The full VASP license underlines Dubai’s position as a forward-thinking city – acknowledging and embracing the financial potential that blockchain technology brings.”
A notable condition of the license involved Binance’s co-founder and former CEO, Changpeng “CZ” Zhao, relinquishing voting control with the local unit, according to Bloomberg, citing sources familiar with the matter. CZ, currently in the U.S. awaiting sentencing after settling charges with the Department of Justice in November, is expected to be sentenced on April 30.
