Binance Obtains Key License in Dubai, Edging Closer to Full Approval

Leading cryptocurrency exchange, Binance, has reached a significant milestone in its quest for full authorization to operate in Dubai. The company has successfully obtained a crucial minimum viable product (MVP) license from the Virtual Asset Regulatory Authority (VARA) of Dubai, enabling it to provide authorized services under VARA's supervision.

This operational MVP license will permit Binance to offer exchange and broker-dealer services, primarily targeting institutional and qualified retail investors in Dubai. With future full approval, the platform has potential to expand its clientele base to include other retail investors.

Furthermore, this license paves the way for eligible users in Dubai to convert virtual assets to fiat currency in accordance with VARA-designated standards. This new capability provides Binance's users with greater accessibility and flexibility in managing their virtual assets.

This latest development marks a significant progression from Binance's initial acquisition of a provisional MVP license in March of the previous year and a preparatory MVP license later in September.

Alexander Chehade, General Manager of Binance Dubai, expressed optimism about the developments, stating that the operational MVP license assures users of a "trusted and regulated service that prioritizes security alongside compliance with highly specialized, tier-one virtual asset regulations under VARA."

However, Binance still has one more hurdle to clear before full approval – the acquisition of a Full Market Product (FMP) license. Upon securing the FMP license, Binance would be able to offer a broader range of authorized services and attract retail clients under the AED 500,000 (approximately $136,000) liquid capital threshold set by VARA.

Despite these significant strides in Dubai, Binance continues to face challenges in other regions. Notably, it was recently compelled to withdraw from several European cities due to registration issues and is currently embroiled in a lawsuit with the US Securities and Exchange Commission.

This operational license victory in Dubai marks a major step for Binance, setting the stage for expanded operations in one of the fastest-growing crypto economies globally.