Key Takeaways:
- Binance obtained a Virtual Asset Service Provider (VASP) license in Dubai, a critical development as the company continues to navigate global regulatory challenges.
- The license was granted following Changpeng Zhao’s resignation from voting rights in Binance’s Dubai-based unit, meeting the final requirement set by Dubai’s Virtual Assets Regulatory Authority (VARA).
- This license marks an advancement in Binance’s strategy to strengthen its operational base in the Middle East, particularly in the UAE, which is emerging as a significant hub for Web3 technologies.
Binance, the leading global cryptocurrency exchange, recently secured a pivotal regulatory license in Dubai, marking a significant stride amid ongoing scrutiny.
The exchange was granted its Virtual Asset Service Provider (VASP) license after Changpeng Zhao, the co-founder, relinquished his voting rights within Binance’s Dubai-based unit.
#Binance is proud to have received a Virtual Asset Service Provider (VASP) licence from Dubai’s Virtual Assets Regulatory Authority (VARA).
— Binance (@binance) April 18, 2024
This milestone allows us to extend our services to the retail market alongside qualified and institutional investors.
Read more ⤵️
This move came as a final stipulation from Dubai’s Virtual Assets Regulatory Authority (VARA) for the license approval, according to sources close to the matter.
Richard Teng, CEO of Binance, confirmed the license acquisition in an announcement to Bloomberg on April 18.
Binance obtains Dubai licence to target retail clients https://t.co/ReNrj6VxAg pic.twitter.com/Csa4DgNsRZ
— Reuters Business (@ReutersBiz) April 18, 2024
This development is particularly noteworthy as Binance has faced intense regulatory challenges globally, especially following the collapse of FTX and subsequent legal battles in the United States.
In a significant legal development last November, Binance agreed to a hefty $4.3 billion settlement with U.S. authorities to resolve accusations of violating Anti-Money Laundering standards under the Bank Secrecy Act.
Zhao also pleaded guilty to a felony charge related to these lapses, stepping down from his role and facing potential sentencing later this month, which could lead to up to 18 months in prison.
The decision by VARA to require Zhao to step down from his voting role was primarily to avoid any conflicts with the ongoing U.S. legal proceedings, ensuring that the Dubai unit could operate independently of any external pressures.
According to Bloomberg, Binance Holdings Ltd. has obtained its full crypto license in Dubai after CZ agreed to give up voting control of the local entity. CZ was forced to give up his CEO position in FZE. However, CZ remains the ultimate beneficial owner. https://t.co/0wNRs2tQqy
— Wu Blockchain (@WuBlockchain) April 18, 2024
Despite stepping back, Zhao remains the beneficial owner of the Abu Dhabi-based parent company of Binance FZE.
With this regulatory milestone, Binance aims to bolster its presence in the United Arab Emirates, as outlined by Alex Chehade, Binance Dubai’s general manager.
🚨 BREAKING 🚨#Binance has successfully obtained a full regulatory license to operate in Dubai. pic.twitter.com/j7KkCcPEzt
— EvanLuthra.eth (@EvanLuthra) April 18, 2024
The region is seen as a burgeoning hub for Web3 technologies, with leadership eager to transition from its traditional fossil fuel reliance to new technological frontiers, including digital assets.
Previously, Binance had received a preliminary license in September 2022, which allowed them to start offering a variety of digital asset services to a select group of retail and institutional investors.
BREAKING:
— WhaleFUD (@WhaleFUD) April 18, 2024
Binance gets Dubai crypto license
This full license now marks a critical step in Binance’s ongoing efforts to establish a robust and compliant global operation, particularly in a region poised to be at the forefront of the digital asset industry.
About The Author
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