Binance now has a full Virtual Asset Services Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). Earlier, Binance FZE secured an Operational MVP license in July 2023, allowing it to offer broker-dealer services and virtual-asset derivatives trading.
This latest license expands Binance FZE’s offerings in Dubai. According to Mr. Alex Chehade, Binance FZE’s general manager, this achievement highlights Dubai’s leadership in blockchain technology and its potential to improve the finance sector.
Binance Adapts Corporate Governance to Secure VASP License
In order to obtain full licensing as a Virtual Asset Services Provider (VASP), Binance underwent significant changes to its corporate governance. Notably, co-founder and former CEO Changpeng “CZ” Zhao relinquished his voting control in the local unit. This move comes amid CZ’s anticipation of sentencing in the United States following the Department of Justice’s settlement with him in November.
Appointment of New Board of Directors to Enhance Compliance
To align with evolving regulatory requirements and enhance its compliance framework, Binance Holdings has appointed a new seven-member Board of Directors. Gabriel Abed, former Ambassador of Barbados to the UAE, will chair the board.
Additionally, CEO Richard Teng, Co-Founder Heina Chen, and other executive members with diverse professional backgrounds are part of this board. Their objective is to steer Binance towards greater transparency and accountability.
Binance CEO Focuses on Compliance and Innovation Amid Changes
Richard Teng, CEO of Binance, views the attainment of a state-level license as a significant indicator of the firm’s commitment to compliance and its dedication to fostering innovation to disrupt existing economic models. Alongside extending congratulations to the company for this milestone, Teng emphasized that while the success story is valuable, it also underscores the responsibility to pursue growth in a responsible manner and operate with transparency.
The acquisition of the license and subsequent leadership restructuring underscore Binance’s readiness to collaborate with global compliance standards and bolster confidence among users and regulators. As the landscape of crypto assets continues to evolve, Binance appears to be strategically positioning itself for stable growth and establishing a robust regulatory framework.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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