Binance wins licence to operate as a crypto exchange in Dubai

Binance’s subsidiary — Binance FZE — became the holder of a basic operational licence to provide digital asset-related services to institutional and qualified retail investors in Dubai.

In March 2022 the organisation received a temporary licence, and in September of the same year — a provisional licence from the local regulator VARA. Binance FZE became the first firm with such status, according to the press release.

The company will be able to offer broker-dealer services and cryptocurrency trading. The licence also allows converting fiat currencies to digital assets and back, subject to the requirements of FATF.

Platform clients gained access to authorised services with the understanding that they are protected under market-guarantee standards developed specifically for the virtual asset sector.

“Our priority is to run the first fully regulated and FATF-compliant exchange in Dubai with prospects for scaling globally,” said Richard Teng, head of regional markets at Binance.

On June 5 the U.S. Securities and Exchange Commission filed a lawsuit against Binance and its CEO Changpeng Zhao. Against this backdrop, regulatory pressure on the company in Europe intensified.

Binance withdrew applications for licences in the United Kingdom, in Germany, in Austria, in Cyprus and announced its exit from the Netherlands. The Belgian Financial Services and Markets Authority ordered the exchange to cease all activity.

Earlier, in April, the Australian regulator revoked the licence of the local subsidiary. In July, officials conducted searches at the Binance Australia office as part of an analysis of derivative-related activity.

There is also a French authorities’ investigation into the exchange. Officials are examining alleged illicit provision of cryptocurrency services and non-compliance with anti-money-laundering obligations.