The government of Dubai has granted a full Virtual Asset Service Provider (VASP) license to Binance Holdings following the former CEO of the exchange, Changpeng Zhao, relinquishing control over the platform in the jurisdiction. This was reported by Bloomberg, citing sources.
Binance representatives have issued an official press release regarding the acquisition of the VASP license in Dubai.
#Binance is proud to have received a Virtual Asset Service Provider (VASP) licence from Dubai’s Virtual Assets Regulatory Authority (VARA).
This milestone allows us to extend our services to the retail market alongside qualified and institutional investors.
Read more ⤵️
— Binance (@binance) April 18, 2024
Since mid-2023, the local subsidiary Binance FZE held an interim Operational MVP license to launch brokerage and exchange services.
Dubai’s Virtual Assets Regulatory Authority required Zhao to relinquish decision-making rights in the company before issuing the VASP license. Insiders suggest this was to ensure compliance with agreements between Binance and the US Department of Justice.
Following the resolution with Binance’s founder, the parties completed a comprehensive review of the products the exchange plans to offer in Dubai. Zhao remains the ultimate beneficial owner of Binance FZE, based in Abu Dhabi.
Return to India
Simultaneously, The Economic Times reported on the exchange’s plans to return to India by paying a $2 million fine.
The company aims to reform its South Asian division by addressing compliance, taxation, and anti-money laundering regulations.
In late December 2023, India’s Financial Intelligence Unit accused several exchanges, including Binance, of operating without registration and violating financial laws. In January 2024, Apple removed ten foreign trading platforms from the App Store in the country.
According to the publication, before the ban, Binance accounted for about 90% of the cryptocurrency assets held by local investors in India, totaling approximately $4 billion. Representatives of the trading platform and the country’s government have yet to confirm this information.
On April 30, a court hearing will take place to determine the penalty for the former CEO of Binance. Lawyers and politicians have discussed the potential sentence.
Richard Teng, the head of regional markets, succeeded Zhao as CEO. Earlier this month, he announced that the company is in talks with several jurisdictions to establish a headquarters.