Binance FZE has been granted a Virtual Asset Service Provider License by Dubai’s VARA.
Takeaway Points
- Binance FZE has been granted a Virtual Asset Service Provider License by Dubai’s VARA.
- The change from an MVP to a VASP license allows Binance FZE to increase its product offerings to the retail market alongside qualified and institutional investors.
- Currently, these offerings are restricted to those that meet the investor criteria.
Binance FZE has been granted a VASP license.
The largest cryptocurrency exchange by trading volume, Binance, announced on Thursday that its Dubai branch, Binance FZE, has received a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).
The change from an MVP to a VASP license allows Binance FZE to increase its product offerings to the retail market alongside qualified and institutional investors. Binance said that individual customers can now have access to a broad range of digital asset products and services, including spot trading, margin trading, and staking.
Richard Teng, Binance’s CEO, said in a statement that receiving the VASP license proves the company’s commitment to transforming the future of finance.
“The acquisition of the distinguished VASP license doesn’t merely underline but conclusively proves our steadfast commitment to revolutionizing the future of finance. Our attainment of this milestone stands as a solid affirmation of our continued drive for transparency, regulatory compliance, and responsible growth in the ever-expanding digital asset sphere. It’s a thrilling prospect to extend further access to the transformative economic benefits of blockchain technology to our users in the UAE,” Richard said.
Alex Chehade, Binance FZE General Manager, said, “This is a major milestone that validates our commitment to providing secure, compliant, and top-tier services to our users globally. It underlines Dubai’s position as a forward-thinking city, acknowledging and embracing the financial potential that blockchain technology brings.”
Benefits of the License
Binance FZE will offer tailored services for users seeking passive income opportunities, such as Simple Earn. Enhancing the scope of investment strategies available, it will also introduce new options through its lending and borrowing services, including virtual asset loans. Management and investment services will enable users to leverage features such as ETH staking, BNB Vault, and Launchpool to amplify the earning potential of their digital assets, according to the report.
Binance said that presently, these offerings are restricted to those that meet the investor criteria and that the license will allow qualified and institutional investors to engage in margin and derivatives services, including futures and options.
The granting of a VASP license by Dubai’s VARA to Binance FZE marks a significant milestone in the realm of cryptocurrency and blockchain regulation. This achievement not only solidifies Binance FZE’s commitment to compliance and legitimacy but also underscores Dubai’s progressive stance towards embracing digital assets and fostering innovation in the financial sector. As Binance FZE continues to leverage this license to expand its services and cater to the growing demand for secure and regulated crypto transactions, it sets a positive precedent for other players in the industry. This development paves the way for enhanced trust, transparency, and accessibility within the global crypto ecosystem, ultimately contributing to its maturation and mainstream adoption.
