Cryptocurrency exchange Binance announced yesterday (18th) that its subsidiary, Binance FZE, has obtained a full license from the Dubai Virtual Asset Service Provider (VASP).
According to previous reports, Binance FZE obtained the Minimum Viable Product (MVP) license in Dubai in July 2023, which was a transitional phase before obtaining the full VASP license. After 9 months of effort, Binance finally obtained the full VASP license.
Richard Teng, CEO of Binance, also stated in an interview with Bloomberg TV on the 18th that they have obtained the VASP license in Dubai and are currently in discussions with multiple jurisdictions.
Insiders: Zhao Changpeng gives up voting control of Binance FZE
According to insiders, Zhao Changpeng, former CEO of Binance, has given up voting control of Binance FZE and stated that the last step required by the Dubai Virtual Asset Regulatory Authority (VARA) before granting the VASP license was for Zhao Changpeng to give up voting control of Binance FZE. Local officials hope to ensure that Dubai does not deviate from the agreement reached between Binance and US authorities.
However, Zhao Changpeng is still the ultimate beneficiary owner of Binance FZE’s parent company located in Abu Dhabi.
This move by Zhao Changpeng to give up voting control of Binance FZE is similar to his resignation as CEO of Binance in late November last year, when he reached a settlement agreement with the US Department of Justice. In both cases, Zhao Changpeng played the sacrificial role to help Binance move forward smoothly on the path of regulatory compliance.
Facing pressure from competitors
On the other hand, before Binance obtained the Dubai VASP license, other cryptocurrency exchanges OKX and Crypto.com had already obtained VASP licenses in Dubai.
In terms of the NFT market, Binance also plans to end its support for Ordinals NFT, a move that benefits OKX and MagicEden, both of which operate Bitcoin NFT trading platforms. As for Binance, although it is simplifying its Binance NFT market product, it is worth noting whether it will adopt a cooperative approach to launch a new Bitcoin NFT trading market in the future.
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