Binance FZE, the Dubai-based subsidiary of the leading global blockchain services provider, has secured an Operational Minimum Viable Product (MVP) licence from the emirate’s Virtual Asset Regulatory Authority (VARA).

This development follows VARA’s issuance of the preparatory MVP Licence to Binance in September 2022, which mandated specific conditions to be met to be authorised for operations. 

The new license will allow Binance FZE to offer VA Exchange Services; and VA Broker-Dealer Services to institutional and qualified retail investors in Dubai.

The transition to an Operational MVP Licence means that suitably qualified Binance FZE users will be able to access the authorised services including the ability to safely convert VA to Fiat with strong Financial Action Task Force (FATF) compliant standards.

Chinese-born Canadian businessman, investor, and software engineer, Changpeng Zhao, commonly known as CZ, is the co-founder and CEO of Binance.

Richard Teng, Head of International Markets at Binance, commented: "Operating within this regulated ecosystem, we are committed to ensuring secure and seamless customer migration, with robust Know-Your-Customer and Customer-Due-Diligence as part of the rigorous onboarding remediation as stipulated by VARA.

"Our priority is to be able to operate this first fully regulated exchange in, and from Dubai in a FATF compliant ecosystem, setting the stage for global scalability with uncompromised user assurance,” he added.

UAE residents and global consumers being on-boarded through this entity will benefit from heightened investor protection and market assurance standards customised for the VA sector, being mandated by VARA for any licensees to be able to offer regulated VA services, in and from Dubai, the company said in a statement.

With this operational MVP licence, all users onboarded through this platform can expect access to a trusted and regulated service that prioritizes security alongside compliance with highly specialised, tier 1 VA regulations under VARA, Alexander Chehade, Binance Dubai’s General Manager, said. 

(Writing by Seban Scaria; editing by Daniel Luiz)

(seban.scaria@lseg.com)