Binance Receives Full Crypto License in Dubai After CZ Gives Up Voting Control

Binance Secures Full Crypto License in Dubai After CZ Gives Up Voting Control

In a major development for the world’s largest digital-asset exchange, Binance Holdings Ltd. has finally received its full crypto license in Dubai. This long-awaited achievement comes after co-founder Changpeng “CZ” Zhao agreed to give up voting control in the local entity, according to sources familiar with the matter.

Chief Executive Officer Richard Teng confirmed the news in a recent Bloomberg Television interview, stating that Binance had obtained a Virtual Asset Service Provider permit in the emirate. This license is a significant win for Binance, which has faced a series of regulatory challenges over the past two years, including a hefty $4.3 billion settlement with US authorities in November.

Binance FZE, the local unit in Dubai, had previously held Operational MVP licenses for broker-dealer and exchange services. The final hurdle to securing a full VASP license was Zhao ceding voting control of the Dubai entity, known as Binance FZE. This move was crucial to ensuring compliance with the terms of the agreement reached with US authorities.

With the licensing issue now resolved, Binance and the Virtual Assets Regulatory Authority (VARA) have completed a thorough review of the products the exchange will offer in Dubai. Despite the challenges, Zhao remains the ultimate beneficial owner of Binance FZE’s parent company based in Abu Dhabi.

While Binance’s competitors like OKX and Crypto.com have already obtained VASP status in Dubai, this new license will allow Binance to expand its services to retail cryptocurrency traders in the emirate. CEO Richard Teng, who took over from Zhao, has committed to enhancing compliance and regulatory relations globally.

As Binance continues to navigate regulatory hurdles in various countries, Teng has hinted at the possibility of establishing a formal headquarters in a jurisdiction that could serve as a global base. The company’s efforts to improve compliance and regulatory relations reflect its commitment to operating within the bounds of the law.

The acquisition of a full crypto license in Dubai marks a significant milestone for Binance, signaling its commitment to regulatory compliance and expansion in key markets. With this latest development, Binance is poised to strengthen its position as a leading player in the digital asset exchange industry.

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