Binance Secures VASP License in Dubai After CZ Gives Up Voting Control
Binance Secures VASP License in Dubai, CZ Zhao Relinquishes Voting Control
In a major development for the cryptocurrency industry, Binance Holdings Ltd., the world’s largest digital asset exchange, has successfully obtained a Virtual Asset Service Provider (VASP) license in Dubai. This achievement comes after co-founder Changpeng “CZ” Zhao agreed to give up his voting control in the local entity, according to sources familiar with the matter.
The long-awaited VASP license is a significant win for Binance, which has been navigating a series of regulatory challenges in recent years. In November, the exchange was required to pay $4.3 billion in penalties to U.S. authorities, leading to Zhao stepping down as CEO as part of the settlement.
With the VASP license in hand, Binance can now offer a wider range of services to customers in Dubai, including retail cryptocurrency trading. Prior to this, Binance’s local unit, Binance FZE, held “Operational MVP” licenses for broker-dealer and exchange services since mid-2023.
One of the final conditions set by the Virtual Assets Regulatory Authority (VARA) before granting the full VASP license was for Zhao to relinquish his voting control of Binance FZE. This move was crucial to ensure alignment with the agreement reached with U.S. authorities.
Despite losing his voting control, Zhao remains the ultimate beneficial owner of Binance FZE’s parent company based in Abu Dhabi. The VASP license puts Binance on par with its smaller competitors like OKX and Crypto.com, who have already obtained the coveted status in Dubai.
Binance’s new CEO, Richard Teng, has pledged to enhance the company’s compliance and regulatory relations globally. With discussions ongoing about potentially establishing a global base, Binance aims to navigate the evolving regulatory landscape in various jurisdictions.
The news of Binance’s VASP license comes on the heels of recent challenges, including the detention of company executives in Nigeria. Binance has since sought the release of its officials, underscoring the complexities faced by cryptocurrency exchanges operating in a rapidly changing regulatory environment.
