Binance FZE, the Dubai-based arm of the leading global cryptocurrency exchange Binance, has successfully obtained a Virtual Asset Service Provider (VASP) license from the Virtual Assets Regulatory Authority (VARA) in Dubai. This achievement follows the earlier acquisition of the Minimum Viable Product (MVP) license in July 2023 and signifies a significant advancement in Binance’s regional business capabilities.
With the upgrade from an MVP to a VASP license, Binance FZE is now authorized to broaden its service offerings to include the retail sector. The services now accessible to customers encompass spot trading, margin trading, and staking, among other digital asset services. Furthermore, the company has announced plans to enhance the variety of exchange services offered, rather than merely increasing the number of tokens available.
Alex Chehade, General Manager at Binance FZE, expressed his enthusiasm about the new license, stating, “Achieving this license is a significant validation of our dedication to delivering secure, compliant, and superior services worldwide. It also highlights Dubai’s progressive stance in recognizing and leveraging the economic opportunities presented by blockchain technology.”
The news of Binance’s regulatory success in Dubai emerges amidst speculation regarding the exchange’s re-entry into the Indian market. Following a setback in January when the Indian government imposed restrictions on Binance and several other platforms for non-compliance with regulatory standards, there are now reports that Binance is negotiating a $2 million settlement to resume operations in India.
The company is reportedly restructuring its operations in South Asia and plans to register with India’s Financial Intelligence Unit. Binance is also committed to adhering to all relevant local regulations, including those related to taxation and anti-money laundering.
In addition to these strategic moves, Binance has recently launched a new token platform named Megadrop. This platform is designed to host airdrops and facilitate Web3 quests, further expanding Binance’s offerings in the digital asset space.
This regulatory milestone in Dubai coincides with the city experiencing unprecedented heavy rainfall and flooding, adding a dramatic backdrop to these developments in the financial technology sector.
