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Binance Clinches Full Crypto License in Dubai After CZ’s Surrender

Published 18/04/2024, 21:00
Binance Clinches Full Crypto License in Dubai After CZ’s Surrender

Coin Edition -

  • After co-founder CZ ceded control, Binance obtained a full crypto license in Dubai.
  • CEO of Binance Richard Teng confirms the Virtual Asset Service Provider permit.
  • VASP license unlocks Binance’s ability to engage in retail cryptocurrency in Dubai.

Binance has finally secured its coveted full crypto license in Dubai, following co-founder Changpeng Zhao’s agreement to relinquish voting control in the local entity Binance FZE. Bloomberg captured this development in a recent publication, citing sources familiar with the situation.

Binance CEO Richard Teng confirmed the news in a Bloomberg Television interview on Thursday that the exchange has obtained a Virtual Asset Service Provider (VASP) permit.

Notably, Binance FZE, the local subsidiary in Dubai, has been operating with Operational MVP licenses for broker-dealer and exchange services since mid-2023, as indicated by the Virtual Assets Regulatory Authority (VARA) register. The Operational MVP designation is an interim stage before obtaining a full VASP license.

One of VARA’s final requirements before granting the VASP license involved Zhao surrendering voting control of the Dubai entity. The regulatory body aimed to align with Binance’s agreement with U.S. authorities, which mandated Zhao’s resignation from the CEO position last year.

Alongside Zhao stepping down, Binance agreed to a settlement sum of $4.3 billion in U.S. penalties in November. The outgone CEO is expected to receive sentencing this month for charges related to anti-money laundering violations.

Meanwhile, following the resolution of Zhao’s voting control issue, Binance and VARA thoroughly examined the products the exchange intends to offer in Dubai, culminating in the full approval.

Despite these developments, the inside sources noted that Zhao remains the ultimate beneficial owner of Binance FZE’s Abu Dhabi-based parent company.

While Binance awaited its full license, smaller competitors such as OKX and Crypto.com outpaced it to achieve the coveted VASP status. An Operational MVP permits Binance to cater to institutional and qualified investors, whereas a VASP license unlocks the ability to engage in retail cryptocurrency trading.

The post Binance Clinches Full Crypto License in Dubai After CZ’s Surrender appeared first on Coin Edition.

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