Binance Secures VASP License in Dubai, CZ Gives Up Voting Rights Amid Legal Challenges
In a strategic move to expand its services and establish the UAE as a central hub for Web3 and digital assets, Binance, the world’s leading crypto exchange, has successfully obtained a Virtual Asset Service Provider (VASP) license in Dubai. This milestone achievement comes as Changpeng Zhao, also known as CZ, the co-founder of Binance, relinquished his voting rights in the Dubai-based entity, Binance FZE.
The license acquisition enables Binance to enhance its presence in the region and align with its vision to transform the UAE’s economy away from fossil fuels towards a more diversified and tech-driven future. Alex Chehade, General Manager of Binance Dubai, highlighted the UAE leadership’s interest in positioning the region as a focal point for Web3 and digital assets, recognizing crypto as a key driver for economic diversification.
CZ’s decision to give up his voting rights is seen as a proactive measure to comply with the Virtual Assets Regulatory Authority’s (VARA) standards, particularly in light of his legal challenges in the United States. In 2023, Binance settled with US authorities for $4.3 billion over Anti-Money Laundering violations, leading to CZ pleading guilty to a related felony charge and stepping down as CEO, with sentencing scheduled for April 30.
Despite speculation surrounding the details of CZ’s decision, Richard Teng, Binance’s CEO, emphasized the company’s commitment to regulatory compliance and confidentiality in dealings with regulators. The acquisition of the VASP license underscores Binance’s dedication to adhering to local regulations and contributing to the economic diversification of the region.
As Binance continues to navigate challenges and opportunities in the crypto landscape, the license approval in Dubai marks a significant milestone in the exchange’s growth and strategic positioning in the global market.
