Binance FZE obtains operational license from Dubai's Virtual Asset Regulatory Authority (VARA MVP)

The cryptocurrency exchange Binance FZE, a subsidiary of Binance, obtained a Minimum Viable Product (MVP) preliminary license from the Virtual Asset Regulatory Authority (VARA) of Dubai in August last year. Now, its official website has announced that Binance has once again obtained an operational license. Binance can provide services such as exchange and brokerage services based on international regulatory standards for Virtual Asset Service Providers (VASPs), catering to institutional investors and eligible retail investors.

Rare Regulatory Good News?

During an AMA session at the end of May, Binance founder Changpeng Zhao (CZ) mentioned his optimism about the future of Dubai and highlighted the astonishing growth of Binance in the city. He also noted that Dubai hosts various cryptocurrency events every night, such as dinners and seminars, showcasing the city's vibrancy and appeal as an international hub. He believes Dubai has become a thriving center for crypto innovation and will continue to grow.

However, it is unclear whether Binance jumped the gun, as the VARA website still shows Binance in the "provisional license" status, while Hex Trust MENA FZE, BitOasis Technologies FZE, and Komainu MEA have obtained operational licenses.

Despite facing regulatory challenges in various countries in recent months, with license applications revoked in Germany and Austria, and announcing its withdrawal from the Dutch market in June, if Binance does secure an operational license in Dubai, it can be considered a rare piece of good regulatory news in recent times!