Binance, the world’s largest cryptocurrency exchange platform, has just taken a decisive step forward by obtaining a long-awaited regulatory license in Dubai. This breakthrough comes against a backdrop of intense regulatory pressure, particularly following the departure of its co-founder, Changpeng Zhao.
Binance’s VASP license in Dubai
Binance has obtained its Virtual Asset Service Provider (VASP) license in Dubai, a crucial victory for the exchange that had been under fire from regulators for at least two years. The license was granted after Changpeng Zhao relinquished his voting power in the exchange’s local entity in Dubai.
Changpeng Zhao and the renunciation of voting power
Changpeng Zhao’s departure, following regulatory pressure and a settlement with the US authorities, was a key element in obtaining this license. The Dubai regulatory authorities insisted on this change so as not to interfere with Binance’s settlement with the US authorities.
The challenges for Binance
The full license represents a major victory for Binance, which has been in the spotlight since the collapse of FTX. This step opens up new prospects for Binance’s future operations, particularly in the Middle East region and especially in Dubai, which is seeking to position itself as a hub for the Web3 ecosystem.
Conclusion
Obtaining the regulatory license in Dubai marks a crucial turning point for Binance, as the exchange continues to navigate a complex regulatory landscape. This breakthrough demonstrates the company’s efforts to comply with regulatory standards while pursuing its ambitions for international expansion.
