Cryptocurrency Exchange Binance announced on Wednesday that it had been licensed to operate in Dubai, United Arab Emirates. The company’s presence in the Middle East has increased recently, with a crypto service provider license in another Gulf market, Bahrain, coming in earlier this week.
Under the Dubai Virtual Asset Provider (VASP) license, Binance is allowed to set up an office in the emirate and provide digital asset exchange services to pre-qualified investors and financial firms under the newly adopted regulatory guidelines.
Dubai is one of the seven emirates that make up the federation of the UAE. It will host 22 VASPs, with a new virtual asset exchange (VAX) license introduced in the Emirate’s Special Economic Zone. The first crypto company to get one was FTX, which announced the development earlier this week. Binance almost immediately followed the steps of its competitors.
This move is part of Binance’s ascension strategy in the Middle East. On March 15, the crypto exchange reported obtaining a license to operate in another Gulf country, Bahrain. It will enable the world’s largest exchange by volume to provide Bahraini clients with trading, custody and portfolio management.
Both Bahrain and the UAE (and Dubai in particular) are embracing an innovation-friendly approach and competing for the status of the region’s most crypto-supporting jurisdiction. In January 2022, the Central Bank of Bahrain (CBB) successfully trialled JP Morgan’s crypto payment system.
The introduction of the new crypto legislation in the UAE in March 2022 was an important step in the federation’s ongoing efforts to “help the industry grow and protect investors,” as the country’s prime minister, Sheikh Mohammed bin Rashid Al Maktoum, said. had said it himself. †