Binance has won an operational licence in Dubai, step three of four to be fully regulated in the jurisdiction. Eligible users in Dubai will now be able to access authorised services.
In 2022, Binance received a Minimal Viable Product (MVP) license from Dubai's Virtual Assets Regulatory Authority (VARA) allowing it to open a domestic bank account to hold clients' funds locally, operate a crypto exchange, and offer payments and custody services.
The Binance blog relates that the progression from the Provisional License, granted in 2022, to an Operational MVP License, means eligible users in Dubai will now be able to access authorised services, including the ability to safely convert virtual assets to fiat under VARA-designated standards compliant with the intergovernmental Financial Action Task Force.
Dubai has a four-stage licensing process and Binance has now cleared three of those stages, with the license for the Full Market Product (FMP) remaining, expected after a demonstration of compliance with all the rules.
Binance's win in Dubai comes as it is scheduled to re-enter Japan and faced setbacks in Germany, Austria, Belgium, and the Netherlands. Binance's US arm has also been sued by regulators for operating an unregistered exchange.
In July 2023, Binance has confirmed that it will no longer pursue licencing in Germany due to regulatory constraints.
BaFin, which is Germany’s financial regulator, revealed that it would reject Binance’s license application. At the time, Binance said it would not share details of its conversations with regulators but emphasised that it would continue to work to comply with BaFin's requirements.
Therefore, the cryptocurrency exchange has decided to abandon its efforts to enter the German market by ‘proactively withdrawing its BaFin application.’ The move comes in the context of increased regulatory scrutiny in the crypto sector, as well as the recent lawsuit that Binance is involved in with the US Securities and Exchange Commission.
Binance officials cited by Reuters highlighted recent regulatory changes in the global market and revealed the company’s continued intent to apply for a licence in Germany as long as the submission accurately reflects these changes.
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