Skip to content

Sorry SG, Dubai Just Secured the Crypto Reign With Binance MVP License

Arabic businessman looking at the skyline in Dubai from his limousine

Table of Contents

Whilst the Monetary Authority of Singapore (MAS) has continued making cautious steps towards crypto, Dubai is flexing its love for digital assets.

In an announcement on Tuesday, Binance said it received the Minimal Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA).

The exchange had been issued a provisional license in March 2022. Its new license means Binance is able to offer an approved range of virtual asset-related services to both local retail and institutional investors.

Meanwhile, MAS is still expressing reluctance for retail investors to be invovled in crypto. An MAS representative told Blockhead, “some people say we’re too tight but some people say we’re too loose.”

Users in Dubai will benefit from increased levels of consumer protection by trading on a regulated platform under the supervision of VARA in Dubai.

Read more: Crypto Isn’t Going Mainstream Anytime Soon, Ensures MAS

Binance will thus be allowed to open a client money account with a domestic bank to offer digital services including virtual asset exchange services, the transfer of virtual assets, fiat/digital asset conversion and more.

Alexander Chehade, Binance Dubai General Manager, praised Dubai’s approach by stating “Our registration in Dubai is a reflection of the country’s progressive stance on blockchain technology and its willingness to embrace this sector through collaboration.”

Last month, MAS chairman Ravi Menon announced that the central bank is contemplating “adding friction” on retail access to cryptocurrencies, in a bid to protect retail investors from the speculative nature of the crypto market.

With the Singapore F1 night race just around the corner, MAS’s ban on advertising has become even more prevalent. Whilst team uniforms and cars are permitted to carry brand sponsorships from crypto companies, advertising on track banners is strictly forbidden. In fact, 8 of 10 teams featured in the Singapore Grand Prix carry at least one sponsorship from a crypto firm.

Read more: F1 Has 920M Global Viewership – Is MAS’ Ban on Trackside Ads Futile?

The stance is rather puzzling as both local audiences and global audiences are exposed to both teams and tracks; viewers whether local or global can’t watch the race without seeing the cars and teams.