Binance Becomes First Exchange to Receive MVP License from Dubai Authorities

Crypto asset trading platform Binance’s Dubai subsidiary Binance FZE has become the first exchange to receive the operational minimum viable product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA).

Binance said in a statement on July 31 that the operational MVP licence allows it to offer VARA-approved services in Dubai, such as exchange and broker-dealer services, initially to institutional and qualified retail investors.

Binance received a provisional MVP license in March 2022 and a preparatory MVP licence in September 2022 before receiving the operational MVP licence.

VARA has now authorised Binance to conduct two licensed activities in Dubai: virtual asset exchange services and virtual asset broker-dealer services, which are limited to institutional and qualified retail investors.

Binance stated that this historic development demonstrates the company's commitment to building a compliant exchange in collaboration with local regulators and within Dubai's unique regulatory framework for virtual asset service providers (VASPs).

The transition from a provisional license granted in 2022 to an operational MVP license means that eligible users in Dubai will now be able to access authorised services, such as the ability to safely convert virtual assets to fiat under VARA-designated standards that are compliant with the intergovernmental Financial Action Task Force.

Institutions and residents who qualify to use the services provided by the operational MVP licence in Dubai can do so with the knowledge that they are subject to investor protection and market assurance standards tailored specifically for the virtual asset sector, and which are required by VARA for any licensees to provide regulated virtual asset services in Dubai.