Binance, a leading cryptocurrency exchange, has recently obtained a full virtual-asset services provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), marking a significant advancement in their regulatory journey.
This achievement comes nearly a year after the company progressed to the third stage of Dubai’s comprehensive four-stage regulatory framework.
In 2023, Binance’s local entity, Binance FZE, was granted an Operational MVP license, a preliminary step that allowed the company to provide services to institutional and qualified investors.
This license included the capacity to offer broker-dealer services and to facilitate virtual-asset derivatives trading.
Alex Chehade, General Manager of Binance FZE, highlighted the importance of the new full VASP license, stating, “underlines Dubai’s position as a forward-thinking city, acknowledging and embracing the financial potential that blockchain technology brings.”
Binance’s CEO, Richard Teng, further underscored the significance of the license, stating, “As we secure the esteemed full market VASP Licence, it notably amplifies our unwavering commitment to advancing the financial landscape through compliance and innovation.
This achievement embodies our dedication to transparency, regulatory compliance, and responsible growth in the dynamic digital assets domain.”
The attainment of the full VASP license in Dubai was not without its conditions; it required that Binance’s co-founder and former CEO, Changpeng “CZ” Zhao, step down from voting control within the local unit.
Zhao is currently facing legal proceedings in the United States and is scheduled for sentencing on April 30, following a plea agreement with the Department of Justice.
In a related development, Binance Holdings has established a new governance framework, introducing a seven-member Board of Directors.
This board, which has been active for nearly seven years, is chaired by Gabriel Abed, former Ambassador of Barbados to the UAE.
The board includes CEO Richard Teng, co-founder Heina Chen, and other notable figures such as Xin Wang from Bayview Acquisition Corp, Arnaud Ventura from Gojo & Company, and former Binance employees, Lilai Wang and Jinkai.
This restructuring into a more formal governance model is part of Binance’s strategy to enhance its accountability and address the challenges it has faced, including those related to legal issues.
These changes reflect Binance’s commitment to ensuring a stable and compliant operational framework as it continues to expand and solidify its presence in the global cryptocurrency market.