One of the world’s biggest cryptocurrency exchanges by exchange volume, Binance, announced that is has become the latest firm to be granted a virtual asset license in Dubai. This comes after the firm received its crypto service provider license in Bahrain. Binance is the first crypto exchange to be issued the license in the Gulf region.
FTX was also awarded a license in Dubai to open local headquarters and will offer crypto derivatives products to institutional investors in Dubai with the new license. In a release, Binance said that this means it will be permitted to extend limited exchange products and services to pre-qualified investors and professional financial service providers.
The license, issued under the Virtual Asset Regulatory Authority (VARA) initial regulatory phase, allows it to operate within Dubai’s ‘test-adapt-scale’ virtual asset market model as a base for expansion into the region.
What you should know
- Earlier this month, Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, announced the creation of a regulatory and licensing authority as the emirate looks to become a major global player in the digital asset industry.
- This counts as the second operating license for Binance in the Middle East. As previously mentioned, the company earlier this week announced it was awarded a license from the Central Bank of Bahrain.
- With these two licenses, Binance can continue to expand its business and raise the adoption level of cryptocurrencies in the Middle East. Although, Binance should expect stiff competition from FTX, who have also been issued that same license.
- According to data compiled by Chainalysis, the UAE is the Middle East’s third-largest crypto market, trailing Turkey and Lebanon, with transaction volumes of about $26 billion from July 2020 to June 2021.
- Founder and CEO Changpeng Zhao stated, “Binance is appreciative of being awarded this license in such a progressive regime, targeting uncompromised governance and market security.”
With Binance expanding its presence in the region, the firm aims to replicate the success it made in Africa, particularly Nigeria. Binance is the number one go-to platform for cryptocurrency trading in Africa’s biggest economy and with Binance expanding its reach all over the world, we can expect that the exchange will deliver more value and profitability for its shareholders.
