Binance has been under scrutiny for more than two years now, it has affected its approval in different nations and the listing of certain tokens. It has had a few wins and today a new one is added after obtaining regulatory license in Dubai after Changpeng Zhao's departure.
The Virtual Asset Service Provider (VASP) license allows the companies that get it to exchange virtual assets for fiat and viceversa. Binance was in a four stage process to get this licence in Dubai, and after a year of being on the stage 3 of "Minimal Viable Product" now it is upgraded to the full VASP, which allows for carrying operations to the broad public. This licence was only granted after Zhao relinquished voting power in Binance FZE.
The license signifies a crucial victory for Binance amidst regulatory challenges following the FTX collapse. That case turned the eyes into crypto and not in a good way. A battle to make illegal the transactions with crypto, especially from crypto to fiat and viceversa, has been going on for a while, although the strength has not been in stopping it but in adding regulations that ultimately might benefit the adoption and operations for business and others, but it affects what crypto was initially created for.
One of the obstacles for the full VASP was the role that Zhao plays on the company, since Zhao's resignation was a part of a settlement with US authorities over Anti-Money Laundering (AML) violations. Dubai's VARA ensured non-interference with US settlement by requiring Zhao to surrender voting rights in Dubai FZE. But he remains the main beneficiary.
Binance aims to leverage Dubai's regulatory environment to expand its offerings in the region, focusing on Web3. The idea is to diversify the economy away from fossil fuel, and crypto is one way to achieve that goal. It expands the economic opportunities for business and individuals, bringing in more income.
Binance is also making a return in India as a registered entity with the Financial Intelligence Unit (FIU) of the finance ministry., after paying a penalty of $2 million. It looks like after several set backs, Binance is getting on a right path. Not without having to comply with the regulators on different countries.
Hope you liked it, until the next time
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