Binance has obtained an operating certification in Dubai, which will help the cryptocurrency agency speed up the acceptance of digital assets.
The certification is for a virtual asset solution provider, issued by the Virtual Assets Regulatory Authority, enabling the company to reach out to retail investors, along with its present services related to spot trading and fiat solutions.
The Vasp certification comes after Binance received the minimum viable product certification in July 2023. This enabled Binance to offer exchange and broker-dealer solutions in Dubai.
In Binance’s plans to increase its user base, certification will be extremely crucial. In the words of the Chief Executive of Binance, Richard Teng, the company intends to go over the 200 million mark soon, making it the largest crypto exchange globally. The figure will be twice that of Coinbase. It also means approximately 50% of the 420 million users are familiar with crypto assets.
Presently, Binance comes with roughly 188 million users, following the addition of 16 million in the initial quarter. Most of it is from institutions, as per Teng. The company is looking for further accelerated acceptance of digital assets in the upcoming five years. Currently, the figure stands at 5%, and Teng believes the crypto arena is at a very nascent stage with potential for extreme growth.
The mission of Dubai and the UAE is to become the ultimate destination point for digital assets internationally.
The Emirate passed a law in March 2022 regulating virtual assets to stand by investors and narrow down the provisions made by exchanges. They also set up a Vara, under the Dubai Virtual Asset Regulation Law, to build an advanced legal infrastructure to safeguard the interests of investors.
As per the Chief Investment Officer of Century Financial, Vijay Valecha, the present laws around crypto are diversified, with some countries managing to flow with the tide and some not so effective. In his opinion, The UAE is looking closely into every aspect.
A while back, Vara released new regulations following the fiasco related to the cryptocurrency space with companies such as Celsius, Three Arrows Capital and FTX.
In the Emirates, investors amassed capital gains of $204 million from investments in cryptocurrencies in 2023, whereas the international cryptocurrency investor community came in for $37.6 billion during the same period.
In the belief of the General Manager of Binance, Alex Chehade, Dubai’s encouragement for technology is showing favourable results.