Binance, the world's leading crypto exchange, has successfully obtained a Virtual Asset Service Provider (VASP) license in Dubai.
This achievement comes after Changpeng Zhao, also known as CZ, the co-founder of Binance, gave up his voting rights in the Dubai-based entity Binance FZE.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Olympus DAO? (OHM Crypto Animated Explainer)
The license enables Binance to expand its services in the region, which aligns with the crypto exchange's plan to transform the UAE into a central hub for Web3 and digital assets, moving away from the region's economic reliance on fossil fuels.
Alex Chehade, General Manager of Binance Dubai, explained:
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.
CZ giving up his voting rights is seen as part of the company's efforts to comply with the Virtual Assets Regulatory Authority’s (VARA) regulatory standards, especially considering his legal issues in the United States.
In 2023, Binance settled with US authorities for $4.3 billion over violations of the Anti-Money Laundering standards under the Bank Secrecy Act, which also led to Zhao pleading guilty to a related felony charge and subsequently resigning as CEO. His sentencing is scheduled for April 30.
However, Richard Teng, Binance's CEO, said the details of the decision to relinquish his voting power were speculative:
That's pure speculation. Again, we don't comment on media speculation... Our relationship, our dealings with regulators are confidential.
Despite facing challenges, the license acquisition demonstrates Binance's commitment to adhering to local regulations and contributing to the region's economic diversification.
