Dubai Virtual Assets Regulatory Authority licensed two cryptocurrency exchanges: Binance and FTX. The regulator was formed last week when Dubai approved its first law to regulate crypto assets.
Dubai allows Binance and FTX
Cryptocurrency exchanges FTX and Binance have obtained a license from the Virtual Asset Regulatory Authority (VARA) of Dubai. The regulator was created last week when the first law regulating crypto assets was passed in Dubai.
Binance announced on Wednesday:
We have obtained a virtual asset license from the Virtual Asset Regulatory Authority (VARA) of Dubai.
With this license, “Binance will be able to operate under the ‘test-and-scale’ virtual asset market model of Dubai as a base for expansion in the region,” the company explained.
“All licensed VARA service providers will be vetted gradually to open up access to the retail market,” Binance noted, adding that in the future, it “will be allowed to expand limited exchange products and services to investors. pre-qualified and professional financial service providers”. .”
Binance further revealed:
In addition to exchange operations, Binance will anchor a blockchain technology hub in the Dubai World Trade Centre.
This week, Binance also said it had obtained a full license from Bahrain’s central bank.
The Dubai Virtual Asset Regulatory Authority has also approved the European branch of the FTX exchange. The company said earlier this week that FTX Europe & MENA has become the first crypto exchange to obtain a license from VARA “to establish and operate its virtual asset (VA) exchange and clearinghouse services in Dubai, in the United Arab Emirates (UAE).
As the anchor of Dubai’s agenda to build progressive global regulatory frameworks for AV, FTX Europe becomes the first fully regulated AV exchange to test complex crypto derivatives dedicated to professional institutional investors in the world. within a reputable international jurisdiction.
FTX CEO Sam Bankman-Fried commented:
FTX is proud to be the first licensee under Dubai’s prudential supervision regime.
Similar to Binance, FTX explained that the license allows it to “operate within Dubai’s ‘test-adapt-scale’ VA market model, which benefits from strong regulatory oversight and a mandatory FATF. [Financial Action Task Force] compliance checks.
What do you think of Binance and FTX expanding into Dubai? Let us know in the comments section below.
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