Binance on Wednesday announced that it has been granted a Virtual Asset License to enable it to operate within Dubai’s ‘test-adapt-scale’ virtual asset market model as a base for expansion into the region.
Under the Virtual Asset Regulatory Authority (VARA) initial regulatory phase, which includes rigorous regulatory oversight and mandatory FATF compliance controls, Binance will be permitted to extend limited exchange products and services to pre-qualified investors and professional financial service providers.
All licensed VARA service providers will be monitored progressively to open access to the retail market. In addition to its exchange operations, Binance will anchor a blockchain technology hub in the Dubai World Trade Centre, to seed new talent and build a vibrant blockchain ecosystem.
“High standards of regulation and compliance are critical to the development and maturing of the global crypto and blockchain industry,” Changpeng Zhao (CZ), founder and CEO of Binance, said. “This 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.”
Helal Saeed Al Marri, 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.
“To this end, our regime is structured to catalyse collaboration, foster innovation, and most critically secure public interest,” he said. “Onboarding Binance within the VARA is reflective of our 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 VA sector.
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.