Dubai: The world’s largest cryptocurrency exchange, Binance, has been granted a license to conduct certain operations in Dubai, from where it plans to conduct regional business, the company said.
The award of the virtual asset license by Dubai’s newly created Virtual Asset Regulatory Authority (VARA) comes after Gulf neighbor Bahrain granted Binance a crypto-asset service provider license on Tuesday. , its first such license issued by a Gulf Cooperation Council (GCC) country.
“Binance will be permitted to extend limited exchange products and services to pre-qualified investors and professional financial service providers. All licensed VARA service providers will be phased in to open retail market access,” Binance said in a statement.
The crypto firm will also anchor a blockchain technology hub in the Dubai World Trade Center (DWTC), he said.
Financial regulators around the world have targeted Binance, with some banning the platform from certain activities and others warning consumers that it is not licensed to operate in their jurisdictions.
The United Arab Emirates, the financial capital of the Gulf region, is struggling to develop the virtual asset industry and regulations to attract new forms of business as regional economic competition intensifies.
Dubai passed its first law governing virtual assets last week and established VARA as a regulator to oversee the sector.
Binance said in December that it was working with DWTC to help build an international virtual asset ecosystem in Dubai and assist in the development of virtual asset regulations.
“Binance will be able to operate its regional business from Dubai in the new regulatory ecosystem which is subject to comprehensive legislation and internationally applicable policy frameworks,” said DWTC Authority Managing Director Helal Saeed. Almarri.