Binance Secures Full VASP License in Dubai, CZ Relinquishes Control

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Binance Secures Full VASP License in Dubai, CZ Relinquishes Control – Crypto News

Published

1 year ago

April 18, 2024

Dripp

Binance Holdings Ltd. has reached a significant milestone by obtaining a full Virtual Asset Service Provider (VASP) license in Dubai. This achievement reflects Binance’s commitment to navigating the complex regulatory landscape while continuing to expand its global presence. As part of the agreement, co-founder Changpeng “CZ” Zhao made the strategic decision to relinquish his voting control in the local entity, a move aimed at ensuring alignment with regulatory requirements and facilitating the smooth acquisition of the license.

Confirmation of the license issuance came directly from CEO Richard Teng during a recent Bloomberg Television interview. Teng’s acknowledgment of this development highlights the importance of this accomplishment for Binance, reinforcing its position as the world’s largest digital-asset exchange. It’s worth noting that Binance’s subsidiary in Dubai had previously received an Operational Minimum Viable Product (MVP) license, a stepping stone that paved the way for the acquisition of the full VASP license. This MVP license enabled users to access regulated virtual asset services in accordance with Dubai’s regulatory standards, laying the groundwork for the subsequent achievement.

Regulatory Challenges and Binance’s Response

The journey towards obtaining the full VASP license in Dubai hasn’t been without its challenges. Binance FZE, the local unit in Dubai, had been operating under Operational MVP licenses for broker-dealer and exchange services since mid-2023. However, the path to securing the full VASP license necessitated certain concessions, notably requiring CZ to surrender his voting control of the Dubai entity. This strategic move was essential to ensuring compliance with agreements made with US authorities and aligning with regulatory expectations.

Despite facing regulatory hurdles, Binance has demonstrated resilience and adaptability under the leadership of CEO Richard Teng. The company has not only weathered regulatory challenges but also continued to expand its offerings and fortify compliance efforts.

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Future Outlook and Regulatory Compliance Efforts

Looking ahead, Binance is poised to capitalize on its recent achievement and further solidify its position in the global cryptocurrency landscape. While Binance celebrates this significant milestone, it remains mindful of the competitive landscape in Dubai and beyond. Competitors such as OKX and Crypto.com have already secured VASP status, underscoring the need for Binance to maintain its competitive edge.

CEO Richard Teng has articulated a clear vision for the future, emphasizing the importance of enhancing compliance measures and fostering positive relationships with regulators worldwide. This commitment to regulatory adherence and transparency will be instrumental in guiding Binance’s expansion efforts and ensuring sustainable growth in the evolving cryptocurrency market.

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