Dubai: The crypto platform Binance has received the Minimal Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA), following the issuance of its provisional license in March. The MVP license means Binance can offer an approved range of virtual asset-related services to suitably qualified retail and institutional investors in Dubai within its framework for virtual asset service providers (VASPs), the world’s largest cryptocurrency exchange said in a statement.
A minimum viable product (MVP) is a version of a product with just enough features to be usable by early customers who can then provide feedback for future product development.
“Binance will cater to a clientele approved by VARA who can now benefit from the local banking channels unlocked by this first-of-its kind regulatory license,” the statement noted. “Users will benefit from increased levels of consumer protection by trading on a regulated platform under the supervision of VARA in Dubai.”
Upgrade from provisional
The transition to MVP license sets in stone a provisional approval received earlier this year. This, according to the crypto exchange, means Binance can open a client money account with a domestic bank in Dubai. This also includes permission from the virtual asset regulator to provide the services like virtual asset exchange services, conversion between virtual assets and fiat currencies, transfer of virtual assets, custody and management of virtual assets, virtual token offering and trading services, virtual assets payments, and remittance services to qualified customers.
“We are pleased to have Binance licensed to operate within the VARA MVP Programme,” said Helal Saeed Almarri, Chairman of VARA. “The MVP Phase is designed for select global players across the value chain, that are committed to responsible industry participation.”
VARA was established in March under the Dubai Virtual Asset Regulation Law, the first of its kind to regulate virtual assets. VARA aims to create an advanced legal framework to protect investors and set international standards for the virtual assets industry to enable responsible business growth in the Emirate.
“This license is a major milestone that follows a number of registrations for Binance’s local entities in the MENA region and across Europe in Italy, France and Spain,” the exchange added. “At Binance we welcome regulations that are globally consistent, enable responsible innovation, protect users, and give them choice. VARA’s unique operating model is setting a benchmark for the global industry, and this most recent registration is an acknowledgement of our compliance and safety processes in the new regulatory framework,” said Changpeng Zhao (CZ), founder and CEO of Binance.