Binance announced on Monday that it had become the first cryptocurrency exchange to receive the Operational Minimum Viable Product (MVP) license issued by Dubai’s Virtual Assets Regulatory Authority (VARA). The license was secured through the exchange’s subsidiary Binance FZE and will allow it to offer cryptocurrency exchange services to qualified institutional and retail customers.
In a statement, Richard Teng, Head of Regional Markets at Binance, expressed his honor at being the first exchange to receive the license: “We are honored to be the first exchange to be granted an operational Minimum Viable Product License by VARA – a result of over a year of due diligence, collaboration, and consistent demonstration of responsible intent – that now allows us to be able to leverage the potential of a progressive regulatory framework, enabling innovation while furthering user protection.”
The Operational MVP license, which was issued after the provisional and preparatory MVP licenses were approved in March and September 2022 respectively, will allow Binance to offer virtual asset exchange services to eligible customers. The company has committed to the onboarding remediation outlined by VARA, which includes stringent Know-Your-Customer (KYC) and customer due diligence processes.
Alexander Chehade, the General Manager at Binance Dubai, noted the importance of the license for customers: “With this operational MVP license, all users onboarded through this platform can expect access to a trusted and regulated service that prioritizes security alongside compliance with highly specialized, tier-one virtual asset regulations under VARA.”
Binance has worked hard to expand its services across the globe while staying in line with regulatory compliance. However, it has also had to face regulatory scrutiny in numerous jurisdictions, including the United States where the SEC filed a securities violation lawsuit against it and its CEO Changpeng Zhao. The exchange has also had to exit from certain countries, such as Canada and the Netherlands, due to various regulatory issues.