The largest cryptocurrency exchange Binance received a license to operate in the United Arab Emirates (UAE). Binance’s press release states that the company will be allowed to sell exchange-traded products and services to qualified investors and professional financial service providers.
We’re proud to announce that #Binance has expanded its presence in the Middle East, securing a license to operate in Dubai, UAE.
Read more ⬇️https://t .co/sN2bKLWTVd
— Binance (@binance) March 16, 2020
License issued in accordance with the new cryptocurrency law , which was adopted in the country last week. As part of the new law, a new agency, the Dubai Virtual Assets Regulatory Authority (VARA), was created. VARA controls the issuance of NFTs and other cryptocurrencies, protects users’ personal data, and monitors cryptocurrency platforms and digital wallets. The agency will also monitor suspicious cryptocurrency transactions and take measures to prevent market manipulation of cryptocurrencies.
According to Chainalysis, since July 2020 to June 16 the volume of cryptocurrency transactions in the UAE amounted to approximately $26 billion. Thus, the country has become the third largest market for digital assets in the Middle East. The top two places are occupied by Turkey and Lebanon.
At the same time, the Supervisory Board of the FATF (Financial Action Task Force on Money Laundering) added the UAE to the “grey list” a week ago for the purpose of enhanced monitoring in relation to combating money laundering. In response to the listing, the UAE government has stated that it is committed to working closely with the FATF on areas for improvement. The decisive actions and ongoing measures taken by the UAE government and the private sector are aimed at ensuring the stability and integrity of the country’s financial system.
Binance is not the only cryptocurrency company planning to expand business in the Middle East. Yesterday it became known that the popular crypto-derivative platform FTX received a similar license. As part of promoting its business in the UAE, the company will open its headquarters in Dubai and offer institutional investors crypto derivatives with centralized counterparty clearing.
Binance has also achieved positive results in the Kingdom of Bahrain. The trading platform was lucky enough to get a license from the Central Bank of Bahrain. Binance will be able to operate legally in the country. The license allows the exchange to provide services for trading, storage and asset management in cryptocurrency under the control of the regulatory authorities of the Kingdom of Bahrain.
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