Binance Follows FTX to Get UAE Permit

The largest cryptocurrency exchange Binance received a license to operate in the United Arab Emirates (UAE). INBinance'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.

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We are 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, 2022

The license was issued in accordance with the new law oncryptocurrency, which was adopted in the country last week. As part of the new law, a new agency was created - the Dubai Virtual Assets Regulatory Authority (VARA). VARA monitors 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 the analytics companyChainalysis, from July 2020 to June 2021, the volume of cryptocurrency transactions in the UAE amounted to approximately $26 billion, making the country the third largest digital asset market in the Middle East. The top two places are occupied by Turkey and Lebanon.

At the same time, the FATF Supervisory Board (theAnti-Money Laundering Financial Measures) added the UAE to the “grey list” a week ago for increased oversight on anti-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. 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 cryptocurrencya company planning to expand its business in the Middle East. Yesterday it became known that the popular crypto derivatives platform FTX received a similar license. As part of the promotion of its business in the UAE, the company will open its headquarters in Dubai and will offer cryptocurrency derivatives with centralized counterparty clearing to institutional investors.

Binance also achieved positive resultsin the Kingdom of Bahrain. The trading platform was lucky enough to receive a license from the Central Bank of Bahrain. Binance will be able to operate in the country legally. The license allows the exchange to provide services for trading, storing and managing assets in cryptocurrency under the control of the regulatory authorities of the Kingdom of Bahrain.

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