Binance FZE, the Dubai entity of the world’s largest crypto exchange by trading volume, has announced it has received the Virtual Asset Service Provider (VASP) licence from Dubai’s Virtual Assets Regulatory Authority (VARA).
The new licence will allow Binance to extend its current services beyond spot trading and fiat services, and expand its services to retail investors, as well as qualified and institutional investors. As a result, Binance can now offer individual customers spot trading, margin trading (for qualified users), and staking products.
It is the fourth and final stage of the VARA approval process.
The company previously held the Minimum Viable Product (MVP) Licence, which was granted by VARA in July 2023. This licence allowed the company to provide exchange and broker-dealer services in Dubai. At the time, it marked a significant milestone for Binance, as well as the UAE’s stance on crypto regulation.
“As we secure the esteemed full market VASP Licence, it notably amplifies our unwavering commitment to advancing the financial landscape through compliance and innovation,” CEO Richard Teng said in a statement. “This achievement embodies our dedication to transparency, regulatory compliance, and responsible growth in the dynamic digital assets domain.”
The full VASP license “underlines Dubai’s position as a forward-thinking city – acknowledging and embracing the financial potential that blockchain technology brings,” added Binance FZE General Manager Alex Chehade.
One condition of the license was for Binance’s co-founder and former CEO, Changpeng “CZ” Zhao, to give up voting control with the local unit, Bloomberg reported, citing people with knowledge of the matter.
The news of the approval of the licences come shortly before the next Bitcoin halving, an event that reduces the rate at which new Bitcoins are issued by 50%. This halving event occurs after every 210,000 blocks have been mined, approximately every four years.
The halving event is anticipated to generate significant interest in Bitcoin, likely influencing its market dynamics amidst a bullish market mood.Â
