After being under intense scrutiny for at least 2 years, Binance finally got its VASP License in Dubai. But what is a VASP License and why is the news so trending?
Let’s explore!
What Is a VASP License?
The Virtual Asset Service Provider (VASP) License is no less than a milestone for Binance. It basically refers to a permit that is granted by authorities concerning cryptocurrency exchange and trading services. VASPs carry out exchanges between different forms of virtual assets or virtual assets and fiat currencies.
Countries with this crypto license include the UK, Spain, Portugal, Estonia, Dubai, and many more.
Binance’s Checks Off VASP License From Its Bucket List
Regarding the recent Binance news update in the market, Binance has achieved a VASP license after VARA’s last requirement to get that crypto license was fulfilled.
As per the requirements of the Virtual Assets Regulatory Authority (VARA), co-founder Changpeng “CZ” Zhao must give up his voting powers in Binance FZE, the Dubai-based unit of exchange to secure the VASP License.
In his statement, the CEO of Binance, Richard Teng said that Zhao gave up his voting powers in the exchange’s local entity on April 18, 2024, to fulfill all the requirements of VARA and secure a crypto license in Dubai.
Binance’s Dubai Unit Vs Zhao?
In November 2023, Zhao agreed to pay a $4.3 billion settlement to United States authorities to settle the federal charges against him. As a result, the officials of VARA wanted to make sure they were not becoming a hurdle between the settlement of Binance and US Authorities. This led Zhao to resign and be replaced by Teng. This was also the main reason why VARA wanted Zhao to cede his voting powers in Dubai FZE.
However, despite all this, Zhao remains the ultimate beneficial owner of Binnace FZE’s Abu-Dhabi-based parent company.
“Binance identified that the senior leadership of the UAE wanted to establish the region as a focal point for Web3. They’re trying to diversify away from fossil fuels, and they see [crypto] as a great driver for doing so.”
- Alex Chehade, Binance Dubai’s General Manager
What’s In For Binance Now?
Gaining a full crypto license in UAE has been the main focus of Binance which now has been accomplished reflecting its commitment and the urge to expand its global network.
Binance had a preparatory minimal viable product license from VARA since September 2022 but that’s definitely not what it wanted! Despite facing so many challenges, Binaance had left no stone unturned to get that crypto license and as a result, Binance News is trending everywhere!
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