With the MVP license, Binance is permitted to provide authorized services to institutional and qualified investors. After receiving full approval, there is potential for expansion to serve other retail investors as well.
On Monday, Crypto Exchange Binance announced that it has secured a crucial license from Dubai’s Virtual Asset Regulatory Authority (VARA). With the acquisition of the operational minimum viable product (MVP) license, Binance is now able to offer approved services under VARA’s supervision in Dubai.
Binance Continues to Strengthen Its Position in the Middle East
These services include exchange and broker-dealer facilities, initially aimed at institutional and qualified retail investors. After receiving full approval, there is potential for expansion to serve other retail investors as well. In addition, users in Dubai who meet the eligibility criteria can exchange virtual assets for fiat currency by standards set by VARA.
Eventually, investors who meet the qualifications through Binance FZE, the locally regulated entity, will be able to access local currency on and offramp channels that were not previously available on Binance.com.
Binance was granted the license after obtaining a provisional MVP license in March of last year and a preparatory MVP license in September.
Alexander Chehade, Binance Dubai’s general manager, stated that,
“With the operational MVP license, users who have been onboarded through this platform can expect access to a secure and regulated service that complies with highly specialized, tier-one virtual asset regulations under VARA.”
In Dubai, the VARA has a four-stage licensing process for applicants to ensure they operate within the regulatory framework before being granted a full market product license (FMP). Currently, Binance has not yet secured an FMP license, which would allow them to provide a wider range of authorized services.
According to a spokesperson for Binance, the transition from MVP to FMP will enable Binance to onboard retail clients who fall below the liquid capital threshold of 500,000 AED (approximately $136,000) set by VARA during the MVP stage.
Even if virtual asset service providers have completed the initial stage of the licensing process, they may still operate with certain restrictions in place.
