The latest Arab nation to open its arms to Binance is Dubai, however, crypto trading on the world’s largest exchange won’t be for everyone.
- The company stated that the virtual asset license permits it to extend “limited exchange products and services” to approved investors and professional financial service providers.
- The license enables Binance to operate within Dubai’s “test-adapt-scale” virtual asset market model as a base for expansion into the region, according to the March 16 announcement.
- The exchange will be heavily monitored and regulated under the Virtual Asset Regulatory Authority (VARA) during this initial phase. Its operations include rigorous regulatory oversight and mandatory FATF compliance controls.
- The move comes as a growing number of nations, predominantly in the West, have taken action against Binance on the regulatory front. The company operates a limited-service exchange in the U.S. and has been on the end of clampdowns in the U.K.
- Binance founder and CEO, Changpeng Zhao, reiterated the firm’s ongoing efforts to comply with global regulators:
“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.”
- In addition to the commencement of crypto services, Binance will also establish a blockchain technology hub in the Dubai World Trade Centre. The effort is part of a drive, so source new talent to build a vibrant crypto and blockchain ecosystem.
- Earlier this month, CryptoPotato reported that Binance was in talks with authorities in Dubai regarding the virtual asset license. On March 15, Bahrain opened its doors to the company awarding it a license to operate as a crypto asset service provider.
- Rival crypto exchange FTX also has eyes on Dubai with plans to establish a regional headquarters in the Arab nation.