Dubai, known for its forward-thinking approach and potential for blockchain technology, has granted Binance Dubai entity Binance FZE a full Virtual Asset Service Provider (VASP) license.
Opening the doors to individual and institutional investors
According to local media reportThe VASP license obtained by Binance FZE allows the company to expand its offerings in Dubai, targeting retail and institutional investors.
With this license, Binance FZE can now provide a full range of virtual asset products to individual customers, including spot trading, margin trading for qualified users, and staking. Richard TengCEO of Binance, expressed his enthusiasm about the license, stating:
As we achieve the prestigious full-market VASP license, it significantly amplifies our unwavering commitment to advancing the financial landscape through compliance and innovation. This achievement embodies our commitment to transparency, regulatory compliance and responsible growth in the dynamic digital assets space.
The successful acquisition of the VASP license highlights Binance’s focus on compliance measures and regulated cryptocurrency services. The exchange has taken further steps to adapt to global regulations following increasing pressure regulators in Nigeria and the United States, even appoint a new board of directors.
Alex Chehade, Managing Director of Binance FZE, highlighted the importance of this regulatory development for the exchange, saying:
This is a major milestone that validates our commitment to providing secure, compliant and best-in-class services to our users. It highlights Dubai’s position as a forward-thinking city – recognizing and embracing the financial potential that blockchain technology brings.
Binance strengthens its position in the United Arab Emirates
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 derivatives remains limited to qualified investors which meet specific criteria.
Meera Judge, Chief Compliance Officer and Chief Risk Officer at Binance FZE, highlighted the company’s commitment to compliance and risk management, saying:
The granting of the Binance FZE VASP license further highlights the company’s unwavering commitment to compliance and risk management. This license issuance symbolizes our commitment to our users and regulatory authorities, reinforcing our adherence to transparent and responsible practices.
On the other hand, Stéphanie Emile, head of operations, said she was excited about the new opportunities brought by the VASP license, noting that the company is “excited for this next chapter”.
Ultimately, the VASP license granted by VARA positions Binance FZE as an important player in the UAE for its operational services. This cements Dubai’s reputation as a thriving hub for cryptocurrency regulation and strengthens the emirate’s commitment to adopting new technologies.
The exchange’s native token, BNB, is currently trading at $544, reflecting a modest 0.6% rally over the past 24 hours. However, it suffered losses of 9% and 7% over seven and fourteen day periods respectively.
Featured image from Shutterstock, chart from TradingView.com
