Binance granted license in Dubai while facing hurdles in Canada and UK
Under this phase, Binance will be permitted to extend limited exchange products and services to pre-qualified investors and professional financial service providers, while being monitored progressively to open access to the retail market.
Binance has experienced quite a few regulatory hurdles in 2021 and continues to do so in 2022. While having been awarded its first license in the Middle East from the Bahrain authority, the crypto platform has recently suspended its Ontario (Canada) operation for the second time, and is being closely watched by the UK FCA.
In the meantime, Binance 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.
The world’s largest cryptocurrency exchange is among the first global VA exchanges to receive a fully governed license to offer prudentially regulated crypto trading services to sophisticated investors.
Dubai has set up a specialized regulator for the VA sector and will be further developing this governed ecosystem, which ensures Binance will be able to operate its regional business from Dubai.
Progressively open access to the retail market
The Virtual Asset Regulatory Authority (VARA) initial regulatory phase includes rigorous regulatory oversight and mandatory FATF compliance controls.
Under this phase, Binance will be permitted to extend limited exchange products and services to pre-qualified investors and professional financial service providers.
Binance will anchor a blockchain technology hub in the Dubai World Trade Centre, to seed new talent and build a vibrant blockchain ecosystem, while being monitored progressively to open access to the retail market.
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 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.”
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.”
