Dubai approves crypto licence for Binance

Crypto exchange Binance has been a granted a virtual asset licence by Dubai’s newly formed Virtual Asset Regulatory Authority (VARA).

The approval will enable Binance to operate a limited number of services to pre-qualified investors and professional financial service providers.

Crucially it will enable Binance, the world’s largest crypto exchange by volume, to carry out regional business from Dubai.

The licence award comes just a week after the VARA was established in Dubai. Binance chief executive Changpeng Zhao was one of the first people to officially welcome the move, via his twitter account, calling the new virtual asset laws “a great step forward” adding that “regulatory clarity is so important”.

Binance has also secured a crypto asset servicer provider licence in neighbouring Bahrain as it looks to expand its presence in the Mena region.

The crypto firm has not been so successful in gaining regulatory approval in other jurisdictions. The UK’s Financial Conduct Authority has so far declined to approve Binance’s application citing a lack of information over the products offered in the UK and stating that Binance “was not capable of being effectively supervised”.

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