TL; DR Breakdown
- Binance earns license of operation in UAE
- The company will operate under the VASP laws
- Binance continues to strengthen its hold on the Middle East
With cryptocurrencies attracting mainstream interest and adoption, companies are looking to stretch their bases. Because of this, Binance has announced that it has earned a license to operate in the United Arab Emirates in a Twitter update. According to a quoted article from Bloomberg, this license is coming off the back of a recent one obtained by the company in Bahrain.
The company will operate under the VASP laws
The newly earned license will allow Binance set up shop in locations across the country while providing crypto services to traders and investments. However, traders and investments must be qualified to trade and dabble in digital assets and related assets. The firm will also be under the supervision of the Virtual Asset Provider of the country located in Dubai.
Dubai has established itself as one most integral of the seven emirates that make up the UAE. The emirate, with about 22 VASPs, recently debuted a license for virtual asset companies setting up shop across the zone. FTX was the first company granted the license some days ago, followed closely by this recent announcement by Binance.
Binance strengthens its hold on the Middle East
This announcement is buttressing a previous statement by Binance to strengthen its operations across the region. With its license in Bahrain, Binance will be able to provide its basic services to firms and individuals across the country. Bahrain and UAE have been at war to become the most innovative country in the last few years.
As far back as January, the Central bank of Bahrain announced that it had concluded a trial of a payment system developed by JP Morgan. However, the new law was a step in the right direction for the UAE in terms of innovation. According to the PM of the country, Sheikh Mohammed Bin Rashid Al Maktoum, the new laws will help companies and innovations thrive for the better across the country.
Binance is yet to establish a permanent headquarters since Changpeng Zhao founded it in 2017. However, there are new reports that Dubai could eventually be home to the company’s global base. Aside from Binance, other companies will be looking for a way to establish a presence in the country, going by the recent law passed in the country.