The latest Arab country to open its arms to Binance is Dubai, however, crypto trading on the world’s largest exchange will not be for everyone.
- The company said the virtual asset license allows it to expand “limited exchange products and services” to approved investors and professional financial services providers.
- As announced on March 16, the license enables Binance to operate within Dubai’s “test-friendly-scale” virtual asset market model as the basis for expansion in the region.
- 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 at a time when a large number of countries, mainly in the West, have taken action against Binance on the regulatory front. The company operates a limited-service exchange in the US and is at the end of a clampdown in the UK.
- Binance’s 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 growth and maturation of the global crypto and blockchain industry, which is why our team is working tirelessly to demonstrate how we can meet the requirements of regulators such as the Dubai Virtual Asset Regulatory Authority. accomplish and exceed.”
- In addition to the launch of crypto services, Binance will also establish a Blockchain Technology Hub at the Dubai World Trade Center. The effort is part of a campaign, 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 a virtual asset license. On 15 March, Bahrain opened its doors to grant the company a license to operate as a crypto asset service provider.
- Rival crypto exchange FTX also has its eye on Dubai and plans to set up a regional headquarters in the Arab nation.
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