By Kimberly Crain
An official report issued by the world’s largest crypto exchange Binance revealed that the firm secured a crypto license to operate in Dubai. The report stated that Binance Dubai, commonly known as Binance FZE, has successfully obtained the operational minimum viable product (MVP) permit from the market regulators Dubai’s Virtual Asset Regulatory Authority (VARA).
Binance Obtains Dubai License
The new license enables Binance to operate as a regulated entity in Dubai. Binance will now offer virtual asset brokerage and dealership services to the Middle East country.
However, the license has restricted Binance from providing some crypto-related services to investors. Reflecting on the July 31 announcement, Binance will only be allowed to provide services to institutional clients and trusted investors in the retail sector.
Meanwhile, qualified customers in Dubai are encouraged to access crypto-to-fiat services the crypto exchange provides on Binance’s platform. The Binance team confirmed to have met the Financial Action Task Force (FATF) requirement for providing crypto to fiat exchange services.
Eligible Investors Under VARA
Despite providing legitimate services, the Binance Dubai team has outlined the eligibility conditions for its users. According to the crypto exchange, the investors seeking to explore Binance services must be “qualified retail clients.”
The Binance team confessed that the eligible investor should be above the age of 21 years and own liquidity assets of more than Dubai $136, equating to 500000 United Arab Emirates dirhams. Additionally, qualified investors should have supporting evidence such as bank statements and proof of funds to demonstrate their financial position.
Also read:Besides having a strong financial statement, the VARA requires the investors to provide their identification report, including passports, visas, and evidence to show they have valid UAE documents.
In an interview with a newsroom, the Binance spokesperson highlighted that the Dubai office had opened crypto-to-fiat exchange services to UAE users. The spokesperson argued that Binance would allow qualified investors to access custodial, brokerage, and conversion services.
Overview of VARA Licensing Process
Previously Binance secured a crypto asset provider license from VARA to operate in Dubai and Bahrain in the attempt to expand to the Middle East. Last September, VARA issued Binance a Minimal Viable Product (MVP) license to provide crypto-related services in Dubai.
Before the approval of MVP, the VARA requested Binance to provide more information on its core business operation. The crypto exchange strategically provided the requested information to meet the regulatory requirements.
An earlier statement conveyed by the Binance spokesperson argued that regulators requesting for additional information was a common process in meeting the regulatory requirements. The spokesperson pledged to cooperate with VARA to complete the subsequent licensing process that were pending.
Even though the MVP license will limit Binance from providing some crypto assets to specific investors, the crypto exchange has been seeking to expand to the Gulf nation. The approval of the MVP license marks a significant milestone for Binance to explore viable opportunities in Dubai.
Guided by VARA’s compulsory rulebook that outlines the compliance, general operation, and market condition, the Binance team plans to uphold compliance with the Dubai laws. Despite, Dubai adopting stringent regulation in crypto assets, the crypto exchange pledged to operate compliantly.
A few days ago, VARA canceled the operation license for BitOasis for failing to meet the deadlines. The unexpected license suspension has compelled BitOasis to hold private talks with VARA to meet all regulatory requirements.
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