Binance has obtained a Virtual Asset Service Provider (VASP) license from Dubai, enabling the global cryptocurrency exchange to expand its services to retail clients alongside qualified and institutional ones within the UAE.

The license facilitates Binance's extension beyond its current offerings of spot trading and fiat services to include margin trading for eligible users and staking products, as part of efforts to boost digital asset adoption and enhance the UAE's regulatory environment's credibility.

This new VASP license builds on the operational minimum viable product license Binance received in July 2023, which allowed it to provide exchange and broker-dealer services in Dubai.

"Securing this license underscores our dedication to fostering a financial landscape marked by compliance and innovation,"

stated Richard Teng, CEO of Binance. He reaffirmed the company's commitment to maintaining transparency, regulatory compliance, and responsible growth in the rapidly evolving digital assets sector.

Richard Teng, CEO of Binance

The announcement comes shortly after Cro Dax Middle East, a Dubai-based subsidiary of cryptocurrency exchange Crypto.com, received a full operational license, enabling it to launch crypto services to both institutional and retail investors in the UAE and the wider Middle East.

Image Source: Binance

Dubai has progressively embraced cryptocurrency, recognizing the necessity to draw stable, long-term digital asset investments. In March 2022, Dubai implemented a law to regulate virtual assets, establishing an advanced legal framework to safeguard investors and set international standards for virtual asset industry management, thereby promoting responsible business development.

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Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, emphasized the law's role in shaping the future and establishing Dubai as a leader in the global virtual assets sector.

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai

The Dubai Virtual Asset Regulation Law also led to the creation of the Dubai Virtual Asset Regulatory Authority (VARA) to oversee the industry across the emirate, excluding the Dubai International Financial Centre.

Following several high-profile global cryptocurrency crises, VARA introduced stringent regulations in February of the previous year to clarify operator responsibilities and mitigate market risks, further positioning the UAE as a burgeoning epicentre for the global cryptocurrency market.

A recent Chainalysis report highlighted the significant activity in the region, noting that investors in the Emirates realized approximately $204 million in capital gains from cryptocurrency investments last year, against a global backdrop of $37.6 billion in investor gains.