Binance recently announced its acquisition of a virtual asset service provider (VASP) license from Dubai’s regulatory authority. This marks a remarkable milestone for both the company and the leading crypto ecosystem in the United Arab Emirates.
The VASP License
The VASP license makes it possible for Binance to offer virtual asset-related services to a wider range of clients. Previously, the company operated in Dubai under an operational minimum viable product (MVP) license, which it got in 2023.
The MVP license lets firms offer virtual asset exchange and broker-dealer services exclusively to “qualified and institutional investors.” According to VARA, a qualified investor is an individual or company with AED 500,000 ($136,000) in cash and relevant knowledge of virtual assets. A “competent financial services regulator,” other virtual asset service providers and governments regulate institutional investors. With the VASP license, Binance can offer its services to retail clients. These are investors that do not meet the criteria for either qualified or institutional investors.
Changpeng Zhao Gave up his Voting Rights
According to Bloomberg sources, Dubai’s regulator made one last requirement before granting the complete VASP license. They insisted that the former Binance CEO, Changpeng Zhao, relinquish his voting rights at Binance FZE. However, Teng dismissed this news as “pure speculation.”
Despite this, cryptocurrency users see the VASP license as a significant victory for Binance’s credibility. The exchange faced scrutiny from various regulators over allegations of operating without proper authorization, leading to its withdrawal from the Netherlands, Belgium, and Cyprus.
Read: How to Buy Homes in Dubai using Cryptocurrencies
Significance of the VASP License
The VASP license is a significant milestone for Binance, aligning it with smaller competitors like OKX and Crypto.com, who have already attained this status. This puts Binance in a better position to serve a wider customer base in Dubai.
Binance’s new CEO, Richard Teng, has committed to enhancing the company’s compliance and relationships with regulators globally. Over the past year, several countries, including India and Belgium, have moved to restrict Binance from operating without proper approvals.
Teng has mentioned that Binance, which currently lacks a formal headquarters, is in discussions with various jurisdictions about potentially opening a global base for the company.
Final Words
The VASP license is beneficial to both Binance and crypto users in Dubai. The license can increase the number of Binance users and crypto investors. Also, crypto users in Binance can freely use the crypto exchange.
Frequently Asked Questions
Is Binance licensed in Dubai?
Yes, Binance is licensed in Dubai.
Who is the Owner of Binance Dubai?
Changpeng Zhao is the owner of Binance in Dubai.
Can I open a Binance account in the UAE?
Yes, you can open a Binance account in the UAE.
What is the Maximum Deposit for Binance UAE?
There is no limit to how much you can deposit in Binance.
Is Binance regulated in Dubai?
Yes, Binance is regulated in Dubai.
Is Binance blocked in Dubai?
No, Binance is not blocked in Dubai
Can Dubai residents buy Bitcoin on Binance?
Yes, Dubai residents can buy Bitcoin on Binance.
Which Crypto Wallets are the Best in Dubai?
The best crypto wallets in Dubai are Coinbase, Binance, etc.
