Binance gets Dubai crypto license
Hey folks.
Good news for the the world's largest crypto exchange Binance. Binance has received the long-awaited regulatory license in Dubai. After giving up his voting power in the exchange's local entity by the co-founder Changpeng Zhao, the exchange received its virtual Asset Service Provider (VASP) license, according to the unnamed people familiar with the matter telling Bloomberg.
The final requirement for the grant of the VASP license by the Virtual Assets Regulatory Authority's (VARA) was for Changpeng Zhao to give up his power of voting in Binance FZE, the unit of the exchange based in Dubai, as per the unnamed people familiar with the matter.
Although Richard Teng, the current CEO of Binance, acknowledged getting the license, he called Zhao's decision to give up his voting rights "pure speculation" in a statement provided to Cointelegraph:
That's pure speculation. Again, we don't comment on media speculation... Our relationship, our dealings with regulators are confidential.
Receiving the full regulatory license on the part of Binance signals an important win for the exchange which was under regulatory scrutiny since the collapse of the crypto exchange FTX.
In November 2023, Binance consented to settle federal charges pertaining to a breach of the Bank Secrecy Act and a lack of Anti-Money Laundering (AML) protocols by agreeing to pay a settlement of $4.3 billion to US authorities.
Officials of Dubai VARA wanted to make sure they didn't interfere with the recent settlement of Binance with the United States authorities which reportedly has forced Changpeng Zhao to give up on his position as the CEO of Binance.
Zhao is still the ultimate beneficial owner of Binance FZE's parent company, which is based in Abu Dhabi, even though receding his voting rights.
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