Binance FZE Gets Operation Permit In Dubai, United Arab Emirates

Binance FZE has permission to operate in Dubai. (Photo; Doc. NFTnews)

JAKARTA - BinanceFZE as one of the largest subsidiary of the world's crypto exchange, Binance, is reported to have succeeded in becoming the first exchange to get a Minimum Operational Worthy Product license in Dubai, United Arab Emirates.

That way, users can now access virtual asset services that have been regulated on this exchange, including on-ramp and off-ramp fiat services, which are guaranteed by investor protection standards and market guarantees from the Dubai Virtual Asset Settings Authority (VARA).

The operational Virtual Product Minimum License (MVP) has been approved by Dubai's Virtual Asset Regulator Authority (VARA), as announced on July 31. Alexander Chehade, General Manager of Binance Dubai, expressed his joy at Dubai's growth as a global virtual asset hub. Binance Dubai has committed to ensuring market security and protection for investors.

Through its subsidiary in Dubai, Binance FZE, Binance can now provide services that have been approved by VARA, including virtual asset exchanges and broker-dealer services. Initially, this crypto exchange will focus on serving eligible institutional and retail investors.

Binance FZE previously received a temporary MVP license in March 2022 and a preparation MVP license in September 2022. With the granting of this Operational MVP license, Binance shows their compliance with local regulators and a regulatory framework applicable to Virtual Asset Service Providers (VASP).

This license will allow Binance users to safely convert virtual assets to fiat according to VARA standards and rules from the Financial Action Task Force (FATF).

Binance views Dubai as a global crypto center because of a regulatory environment that is friendly to virtual assets. Binance CEO Changpeng "CZ" Zhao is known to live in the city. The United Arab Emirates has shown its support for blockchain technology, Web3, and virtual assets in creating a growing industry.

Despite being faced with regulatory challenges and strict oversight in some other countries, Binance believes that Dubai is a suitable place as a home and scaled service for institutions, retail investors, and the virtual asset community at the global level.