Dubai’s VARA Grants Operation License to Binance

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Staff Writer, TLR

Published on July 14, 2023, 17:41:00


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Binance, the world's largest cryptocurrency exchange, announced that it has been granted a licence to operate in Dubai.

It is to be noted that the Virtual Asset Regulatory Authority (VARA) was introduced in Dubai last week. The Authority is the new regulatory body that is part of the Dubai World Trade Center Authority. It will protect users' personal information and keep track of digital transactions.

The license will enable Binance to operate within Dubai’s ‘test-adapt-scale’ virtual asset market model as a base for expansion into the region.

Under the Virtual Asset Regulatory Authority’s initial regulatory phase, Binance will be permitted to extend limited exchange products and services to pre-qualified investors and professional financial service providers.

The VARA’s initial regulatory phase also includes rigorous regulatory oversight and mandatory FATF compliance controls,

All licensed VARA service providers will be monitored progressively to open access to the retail market. In addition to its exchange operations, Binance will anchor a blockchain technology hub in the Dubai World Trade Centre, to seed new talent and build a vibrant blockchain ecosystem.

According to WAM, Changpeng Zhao (CZ), founder and CEO of Binance, said, "High standards of regulation and compliance are critical to the development and maturing of the global crypto and blockchain industry, which is why our team has been working tirelessly to demonstrate how we meet and exceed the requirements of regulators such as the Dubai Virtual Asset Regulatory Authority."

"Binance is appreciative of being awarded this license in such a progressive regime, targeting uncompromised governance and market security. The collaborative way in which Binance has been engaged to bring proven industry compliance leading experience to the Dubai ecosystem is indicative of the unique operating model that the VARA is creating for the global industry," Zhao added.

Commenting on Binance joining the new Virtual Asset ecosystem, Helal Saeed Al Marri, Director-General of Dubai World Trade Centre Authority that houses VARA, said, "The new VARA is symbolic of Dubai’s confidence in the potential of this future economy driver - if introduced with prudence and legitimacy. To this end, our regime is structured to catalyse collaboration, foster innovation, and most critically secure public interest. Onboarding Binance within the VARA is reflective of their commitment to the Dubai agenda - to provide the global industry with certainty of governance, enabled by ‘shared industry responsibility and legislative security for society."

Dubai is the first global economy to have set up a specialised regulator for the virtual assets sector and will be further developing this VARA governed ecosystem of credible, reputable and innovative international leaders.

The VARA issued Virtual Asset Exchange License ensures Binance will be able to operate its regional business from Dubai in the newly announced regulatory ecosystem that is subject to comprehensive legislation and internationally applicable policy frameworks.

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