- Co-founder Chanpeng  to relinquish his voting control in the local entity, a move aimed at ensuring alignment with regulatory requirements and facilitating the smooth acquisition of the license.
Binance, the world’s largest digital-asset exchange, obtained a full Virtual Asset Service Provider (VASP) licence by Dubai’s Virtual Assets Regulatory Authority (VARA).
“As we secure the esteemed full market VASP Licence, it notably amplifies our unwavering commitment to advancing the financial landscape through compliance and innovation,” Richard Teng, CEO of Binance, said in a statement.
“This achievement embodies our dedication to transparency, regulatory compliance, and responsible growth in the dynamic digital assets domain.”
As part of the agreement, co-founder Changpeng “CZ” Zhao made the strategic decision to relinquish his voting control in the local entity, a move aimed at ensuring alignment with regulatory requirements and facilitating the smooth acquisition of the license.
Embracing the financial potential
Binance’s local unit, Binance FZE, obtained an operational MVP license in mid-2023, a VARA filing shows. That allowed it to serve institutional investors and qualified investors while engaging in broker-dealer services and exchange services including virtual-asset derivatives trading.
This MVP license enabled users to access regulated virtual asset services in accordance with Dubai’s regulatory standards, laying the groundwork for the subsequent achievement.
“The full VASP license “underlines Dubai’s position as a forward-thinking city – acknowledging and embracing the financial potential that blockchain technology brings,” Binance FZE General Manager Alex Chehade said in a statement.
Binance is also looking to return to the Indian market after being banned from the local government in January, according to a local media report.
In January, India blocked nine crypto websites for illegal operations without proper compliance with local regulations. Following the government action, Apple and Google stores removed crypto exchange apps from the region.
The cryptocurrency exchange is preparing to return to India by paying a $2 million penalty and aims to reform its South Asian entity to become fully registered with India’s Financial Intelligence Unit, which oversees the local trade of digital assets, and is working to comply with all applicable regulations, including local money laundering and taxation laws. Â