- Binance’s Dubai subsidiary, Binance FZE, has received a license to offer exchange and broker-dealer services in the city
- The license will allow institutional clients and “qualified retail investors” to use the service
- Binance’s approval in Dubai shows its commitment to expanding services in the Middle East amid Western scrutiny
Binance announced on Monday that its Dubai subsidiary, Binance FZE, has been granted a local license, allowing the provision of exchange and broker-dealer services for institutional clients and “qualified retail investors.” The licensing process was arduous, with Binance FZE receiving a provisional license from Dubai’s Virtual Asset Regulatory Authority back in March 2022. The recent approval marks a crucial step toward obtaining a full market license for broker-dealer services, making it the first exchange to receive approval for exchange services from the Dubai regulator.
Zhao Acknowledges Hard Work
Binance was one of the first exchanges to apply for a provisional license last year under the city’s new Virtual Asset Regulation Law. It was awarded in March but it has taken more than a year to have the final license ratified.
Binance CEO Changpeng Zhao acknowledged the demanding process and expressed appreciation for the collaboration with regulators in Dubai. He remarked on the varying speeds of regulatory developments globally and commended Dubai for leading the forefront in embracing the crypto industry.
The new license comes at a time when Binance has faced regulatory challenges in multiple jurisdictions. In March, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance, alleging the exchange intentionally offered services to U.S. customers not available through its American branch, Binance.US. Subsequently, in June, the Securities and Exchange Commission (SEC) issued a 136-page lawsuit against Binance and Zhao, accusing them of deception, conflicts of interest, lack of disclosure, and evading the law.
Binance Breathes Again
The regulatory scrutiny has led to upheaval within Binance, with top executives resigning over Zhao’s response to the U.S. investigations, reports of layoffs affecting over 1,000 employees, and the withdrawal of operations from certain countries, including the Netherlands, Germany, and Cyprus.
Besides facing legal challenges in the United States, Binance also confronts regulatory issues in Canada, France, and Australia, further contributing to the ongoing uncertainties surrounding the exchange’s global operations.
As Binance continues to navigate complex regulatory landscapes worldwide, the approval in Dubai represents a significant development and signals the company’s commitment to expanding its services in the Middle Eastern region.