Binance to offer crypto broker-dealer services in Dubai with new license.
03 August 2023, 12:00 AM
31 August 2023, 12:00 AM
Binance, the world’s largest cryptocurrency exchange, has achieved another landmark in its journey towards full regulation in Dubai, becoming the first crypto firm to secure an operational license in the Middle Eastern financial hub.
“We are pleased to announce that our Dubai subsidiary, Binance FZE, has become the first exchange to receive the Operational Minimum Viable Product (MVP) license from Dubai's Virtual Asset Regulatory Authority (VARA),” the company announced on July 31.
The new license officially allows Binance to operate cryptocurrency exchange and virtual asset broker-dealer services.
The services enabled by the license are currently limited to institutional and qualified retail investors in Dubai, Binance noted. Eligible investors in Dubai can now access authorized services like crypto-to-fiat exchanges compliant with the intergovernmental Financial Action Task Force (FATF).
Last year Binance received a Minimal Viable Product (MVP) license from Dubai's Virtual Assets Regulatory Authority (VARA) allowing it to open a domestic bank account to hold clients' funds locally, operate a crypto exchange and offer payments and custody services.
Dubai has a four-stage licensing process and Binance has now cleared three of those stages, with the license for the Full Market Product (FMP) remaining, expected after a demonstration of compliance with all the rules.
In order to become a user of Binance in Dubai, an investor should have a status of a “qualified retail client” in Dubai. Eligible users include people aged at least 21 and those being able to evidence 500,000 United Arab Emirates dirhams ($136,000) in net liquid assets, supported by documentary proof like bank statements and proof of funds.
Qualified investors should also provide valid identification documents like passports, visas, as well as proof of valid UAE address and contact details.
A spokesperson for Binance told Cointelegraph that the Dubai entity of Binance is now able to offer services like crypto-to-fiat exchange and conversions, transfer and custody, brokerage as well as virtual asset payments and remittance services.