Binance ordered to remove Changpeng Zhao to get Dubai license

abdelaziz Fathi

Binance, the world’s largest cryptocurrency exchange, has obtained a Virtual Asset Service Provider (VASP) license in Dubai.

Binance CEO Changpeng Zhao

The license was granted after Binance co-founder Changpeng Zhao relinquished his voting power in the exchange’s Dubai-based unit, Binance FZE, sources familiar with the matter told Bloomberg.

The requirement for Zhao to give up his voting rights was a key condition set by the Virtual Assets Regulatory Authority (VARA) for granting the VASP license. This is part of broader efforts to comply with international regulatory standards following intense scrutiny of the crypto industry.

While Binance’s current CEO, Richard Teng, confirmed the license acquisition, he described claims about Zhao’s voting power as “pure speculation.” The license is a crucial step for Binance, which has faced regulatory challenges globally, including a $4.3 billion settlement with U.S. authorities in November 2023 over violations of Anti-Money Laundering standards.

“That’s pure speculation. Again, we don’t comment on media speculation… Our relationship, our dealings with regulators are confidential,” said Teng.

Zhao, who pleaded guilty to failing to maintain adequate AML protocols, resigned from his CEO role as part of a plea deal, with his sentencing scheduled for April 30. He remains the ultimate beneficial owner of Binance FZE’s parent company based in Abu Dhabi, despite stepping back from direct managerial roles.

The new approval also follows Binance’s receipt of a preparatory minimal viable product license from VARA in September 2022, which initially allowed the exchange to offer a variety of digital asset services to qualified retail and institutional investors.

The granting of the VASP license aligns with the United Arab Emirates’ goals to position itself as a hub for Web3 and digital assets, as part of its broader economic diversification away from fossil fuels.

The new rules create a legal framework for crypto aimed at protecting investors and designing much-warranted international standards for industry governance. In addition, the VARA now has enforcement powers in Dubai’s special development and free zones with the exception of the Dubai International Financial Centre.

The regulations set out four compulsory rulebooks and activity-specific rulebooks that VASPs must comply with to offer their services. The “Full Market Product Regulations” include guidelines that lay down the rules for compliance, risk management, market conduct, and other requirements.

Read this next

Fintech, Payments

PayRetailers Expands in Brazil with Acquisition of Transfeera

PayRetailers strengthens its presence in Brazil by acquiring the payment institution Transfeera, aiming to enhance its technological capabilities and expand its customer base.

blockdag

Top Bullish Crypto: Fetch.ai & Pepe Coin Price Surge, But BlockDAG Sees Investor Rush as X Series Miners Stand Out

Compare Fetch.ai (FET) Bull Run, Pepe Coin price, and top bullish crypto BlockDAG. Discover why BlockDAG’s innovation and growth potential make it the best choice.

Digital Assets

Coinbase resumes XRP trading in New York after nine-month hiatus

Coinbase has resumed trading for XRP in New York, the company’s chief legal officer, Paul Grewal, announced on Thursday. This comes after a nine-month suspension of the cryptocurrency on the exchange due to regulatory scrutiny.

Institutional FX

Swissquote joins Fortex Hub to expand liquidity distribution

ECN trading platform and technology provider, Fortex Inc. has announced a new integration with Swissquote Group, Switzerland’s provider of online trading services.

Chainwire

Multipool Enters Partnership with Mobilum Offering Users Fiat to DeFi On/Off Ramp

Multipool, a leading innovator in the blockchain and cryptocurrency industry announces a corporate partnership with Mobilum.

Retail FX

IC Markets taps TipRanks’ trading research tools

Sydney-based IC Markets has completed integration of TipRanks’s rating tools, which ranks analysts and financial bloggers based on their picks’ performance analysis, in a bid to provide its clients with new research capabilities.

Digital Assets

Gate.io shelves plan to operate in Hong Kong

Gate Digital Ltd (Gate HK) announced it is winding down operations and has withdrawn its application for a crypto trading platform license in Hong Kong.

Chainwire

Sui and Mesh Combine Forces to Bring Simplified Transactions Across the Sui Ecosystem

With the addition of the Mesh platform, Sui Wallet will achieve product parity with the world’s largest self-custody wallets, while Mesh now natively supports the SUI token

Market News, Tech and Fundamental, Technical Analysis

EURGBP Technical Analysis Report 23 May, 2024

EURGBP currency pair can be expected to rise further toward the next resistance level 0.8560.

<