Dubai, known for its forward-thinking approach and embracing the potential of blockchain technology, has granted Binance’s Dubai entity, Binance FZE, a full Virtual Asset Service Provider (VASP) license.
Opening Doors For Retail And Institutional Investors
According to a local media report, the VASP license obtained by Binance FZE allows the company to expand its offerings in Dubai, catering to retail and institutional investors.
With this license, Binance FZE can now provide a comprehensive range of virtual asset products to individual customers, including spot trading, margin trading for qualified users, and staking. Richard Teng, CEO of Binance, expressed enthusiasm about the license, stating:
As we secure the esteemed full-market VASP License, it notably amplifies our unwavering commitment to advancing the financial landscape through compliance and innovation. This achievement embodies our dedication to transparency, regulatory compliance, and responsible growth in the dynamic digital assets domain.
The successful acquisition of the VASP license underscores Binance’s emphasis on compliance measures and regulated cryptocurrency services. The exchange has taken new steps to adapt to global regulation following increasing pressure from regulators in Nigeria and the United States, even appointing a new board of directors.
Alex Chehade, General Manager of Binance FZE, emphasized the significance of this regulatory development for the exchange, affirming:
This is a major milestone that validates our commitment to providing secure, compliant, and top-tier services to our users. It underlines Dubai’s position as a forward-thinking city – acknowledging and embracing the financial potential that blockchain technology brings.
Binance Strengthens Its Position In The UAE
The newly approved license also grants Binance FZE the ability to offer advanced trading capabilities, such as futures, and options, to qualified and institutional investors.
However, the report notes that access to these higher-risk derivative products remains limited to accredited investors who meet specific criteria.
Meera Judge, Compliance Officer and Head of Risk at Binance FZE highlighted the company’s dedication to compliance and risk management, stating:
The granting of the Binance FZE VASP license further underscores the firm’s steadfast commitment towards compliance and risk management. This license issuance symbolizes our dedication to our users and regulatory authorities, reinforcing our adherence to transparent and responsible practices.
On the other hand, Stephanie Emile, Head of Operations, expressed excitement about the new opportunities brought by the VASP license, noting that the company is “excited for this next chapter.”
Ultimately, the VARA-granted VASP license positions Binance FZE as a strong player in the UAE for its operational services. It solidifies Dubai’s reputation as a thriving hub for cryptocurrency regulation and reinforces the emirate’s commitment to embracing new technologies.
The exchange’s native token, BNB, is currently trading at $544, reflecting a modest 0.6% recovery over the past 24 hours. However, it experienced 9% and 7% losses in the seven-day and fourteen-day time frames, respectively.
Featured image from Shutterstock, chart from TradingView.com