Binance Obtains Regulatory Approval In Dubai After Leadership Transition

Binance, the world’s largest cryptocurrency exchange, finally secured its long-awaited regulatory license in Dubai.

After co-founder Changpeng Zhao relinquished his voting power in Binance FZE, the Dubai-based unit of the exchange, the Virtual Assets Regulatory Authority (VARA) granted the Virtual Asset Service Provider (VASP) license. Although Binance CEO Richard Teng confirmed the license reception, he dismissed claims of Zhao’s voting power forfeiture as “pure speculation.” The regulatory approval signifies a significant milestone for Binance amid ongoing scrutiny, particularly following the $4.3-billion settlement with US authorities in November 2023 over Anti-Money Laundering (AML) violations.

Zhao’s compliance with VARA’s requirement aims to avoid interference with the US settlement terms. Despite Zhao’s reduced influence, he remains the ultimate beneficial owner of Binance FZE’s parent company. Binance’s expansion into the UAE aligns with the region’s ambition to become a hub for Web3 technologies, diversifying away from fossil fuels. Previously, Binance had obtained a preparatory minimal viable product license from VARA in September 2022, enabling it to offer digital asset services to qualified investors.

Clever Robot News Desk 20^th April 2024