Amid the challenges that crypto entities face with regulators in Europe and America, Binance exchange recently secured an operational permit in Dubai, becoming the first crypto exchange to have a license to offer crypto-related services to customers in the United Arab Emirates.
According to the report, the financial regulator in Dubai has granted Binance an Operational Minimum Viable Product license issued by the VARA (Virtual Assets Regulatory Authority). The news surfaced when the exchange faced several challenges from the American and European digital assets regulators.
Furthermore, the Operational permit issued to Binance’s UAE branch, dubbed Binance FZE, would enable the firm to regulate digital assets custody services with thorough compliance with the customer protection rules and market assurance criteria set in place by VARA.
Binance’s chair of Regional Markets, Richard Teng, expressed that being the first exchange to be granted the operational MVP permit by Dubai’s financial authority is an honor to the firm. He added that the development is crucial as it was a positive result of the firm’s long-term diligence, compliance, and collaboration.
In addition, Teng emphasized that Binance is determined to offer safe and seamless digital assets trading services to UAE citizens. He also stated that the firm is ready to comply with the Customer due diligence and know your customer protocols that the regulator slated.
Binance Experience Different Situation In UAE and Europe
During the announcement of the new development, a Binance spokesperson noted that the UAE is actively embracing blockchain and crypto technology and also considers Dubai one of the fast-growing virtual assets hubs globally where technological innovation and customer security are priorities.
Furthermore, Binance reportedly envisions that the Web3 sector would further thrive in the region in alignment with the country’s regulatory standards. Also, the general manager of the newly launched Binance branch in Dubai, Alexander Chehade, claimed that the firm is glad to contribute to the growth of the crypto industry in Dubai.
Chehade continued that the permit the firm recently got would ensure that UAE citizens have access to trusted and regulated crypto-related services with optimal security. Also, the manager thinks Binance would thrive well in the new region.
However, the same cannot be said with the situation of things in Europe. In July 2023, Binance withdrew its application to obtain an operational license from Germany due to some irregularities in the global market. But it said it would request the permit in the future again.
Also, Binance was reportedly refused permission to operate in the Netherlands. Also, Binance was pressured to exit some European countries’ markets, including the UK, Cyprus, and Australia, over the refusal of the authority to issue necessary operation permits to the exchange.
Nigeria Issues Warning To Binance Exchange
Nonetheless, the apex exchange emphasized that it was determined to fully comply with the fast-approaching Markets in Crypto Assets rules, which would allow it to continue its operation in Europe. The contrasting relationship that Binance has with UAE and European regulators shows how difficult it is for exchange to get licensed.
Meanwhile, the Nigerian Securities and Exchange Commission recently accused Binance of illegally operating in the country as it is not registered with the agency. Consequently, it puts investors at high-risk as they do not have protection of the law by dealing with unregistered exchanges.
Hence, the regulators of Nigeria warned Binance to stop offering services to Nigerian citizens. In addition, the commission warned investors that crypto assets are highly volatile and that investing in them can cause a total loss of funds.
Therefore, it urged the public to be careful about the crypto assets market offerings from Binance and other crypto exchanges not licensed by the commission as their activities are considered illegal with grave consequences.
The first warning issued by the Nigeria regulator was focused on a firm dubbed Binance Nigeria Limited, which Binance Exchange denies any connection with. Now, the second warning was issued on Binance Global’s website.
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