Binance secures licence by Dubai’s Virtual Asset Regulatory Authority

Binance, a blockchain and cryptocurrency infrastructure provider, has been granted a Virtual Asset Licence, allowing it to operate under Dubai’s ‘test-adapt-scale’ virtual asset market model as a platform for regional development.

The company will be allowed to offer limited exchange products and services to pre-qualified investors and professional financial service providers under the initial regulatory phase of the Virtual Asset Regulatory Authority (VARA), which includes strict regulatory oversight and mandatory FATF compliance controls.

To get access to the retail market, all licenced VARA service providers will be monitored in stages. Binance will establish a blockchain technology hub at the Dubai World Trade Centre, in addition to its exchange activities, to foster fresh talent and build a thriving blockchain ecosystem.

Changpeng Zhao (CZ), founder and CEO of Binance, said: “High standards of regulation and compliance are critical to the development and maturing of the global crypto and blockchain industry, which is why our team has been working tirelessly to demonstrate how we meet and exceed the requirements of regulators such as the Dubai Virtual Asset Regulatory Authority.”

#Binance has been granted a Virtual Asset License from Dubai’s Virtual Asset Regulatory Authority (VARA).

This licence ensures that #Binance will be able to operate its regional business from Dubai, UAE ??https://t.co/bqeMe1T54z

— Binance (@binance) March 16, 2022

“Binance is appreciative of being awarded this license in such a progressive regime, targeting uncompromised governance and market security. The collaborative way in which Binance has been engaged to bring proven industry compliance leading experience to the Dubai ecosystem is indicative of the unique operating model that the VARA is creating for the global industry.”

Commenting on Binance joining the new Virtual Asset ecosystem, Helal Saeed Almarri, director-general of Dubai World Trade Centre Authority that houses VARA said, “The new VARA is symbolic of Dubai’s confidence in the potential of this future economy driver – if introduced with prudence and legitimacy. To this end, our regime is structured to catalyse collaboration, foster innovation, and most critically secure public interest. Onboarding Binance within the VARA is reflective of their commitment to the Dubai agenda – to provide the global industry the certainty of governance, enabled by ‘shared industry responsibility’ and legislative security for society.”

Dubai is the first global economy to have set up a specialised regulator for the virtual asset sector and will be further developing this VARA governed ecosystem of credible, reputable and innovative international leaders. The VARA issued Virtual Asset Exchange License ensures Binance will be able to operate its regional business from Dubai in the newly announced regulatory ecosystem that is subject to comprehensive legislation and internationally applicable policy frameworks.

Meanwhile earlier this week, Binance was awarded a crypto-asset service provider licence from the Central Bank of Bahrain (CBB).

Read: Bahrain’s Central Bank issues operating licence to Binance

“The licence from Bahrain is a milestone in our journey to being fully licensed and regulated around the world. Team Bahrain has shown considerable foresight in its development of crypto regulations and provides the regulatory protections that consumers should come to expect from regulators around the world,” said Zhao (CZ) had then said.

The Dubai World Trade Centre (DWTC) is set to become a “comprehensive zone and regulator” for virtual assets and crypto including digital assets, products, operators and exchanges in the emirate.

Read: Dubai World Trade Centre to become regulator for virtual assets and crypto

DWTC will be designing a comprehensive ecosystem for this sector within Dubai. It will collaborate with private sector entities in Dubai to enforce standards for investor protection, anti money laundering (AML), combatting the financing of terrorism (CFT) compliance and cross-border deal flow tracing, Dubai Media Office said in a statement.