In a significant stride towards full regulation, Binance, the biggest cryptocurrency exchange, has successfully secured an operational license in Dubai. This achievement marks the third out of four steps in the city's stringent licensing process.
Dubai, known for its forward-thinking approach to blockchain technology, has a four-stage licensing procedure. Binance has now successfully navigated three of these stages, with the Full Market Product (FMP) license being the final hurdle. This license is expected to be granted upon demonstration of full compliance with all regulatory rules.
Binance's triumph in Dubai comes on the heels of its announcement last year when it received a Minimal Viable Product (MVP) license from Dubai's Virtual Assets Regulatory Authority (VARA). This license allowed Binance to open a domestic bank account for holding client funds locally, operate a crypto exchange, and offer payments and custody services.
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With the newly acquired operational license, eligible users in Dubai can now access authorized services. This includes the ability to safely convert virtual assets to fiat under VARA-designated standards, compliant with the intergovernmental Financial Action Task Force.
However, the road to regulation hasn't been entirely smooth for Binance. The crypto behemoth is scheduled to re-enter Japan and has faced setbacks in Germany, Austria, Belgium, and the Netherlands. Additionally, Binance's U.S. arm is currently under fire from regulators for operating an unregistered exchange.
Despite these challenges, Binance's recent win in Dubai signifies a crucial step forward in its global regulatory journey. The progress in Dubai serves as a testament to its commitment to regulatory compliance and user security.
