Binance Gets #Dubai VASP License After CZ Deal (BNB) - Bloomberg

Binance Gets Dubai VASP License After CZ Deal (BNB) - Bloomberg

Binance Holdings Ltd. received its long-sought full crypto license in Dubai after co-founder Changpeng “CZ” Zhao agreed to give up voting control in the local entity, according to people with knowledge of the matter.

The world’s biggest digital-asset exchange got a Virtual Asset Service Provider permit in the emirate, Chief Executive Officer Richard Teng confirmed in a Bloomberg Television interview on Thursday.

The license is a much-needed win for Binance, which suffered a string of regulatory hits over the past two years that culminated in its agreement to pay $4.3 billion in US penalties in November. Zhao was forced to resign as chief executive officer as part of that deal and is expected to be sentenced this month after pleading guilty to anti-money laundering and sanctions charges.

Binance FZE, the local unit in Dubai, has held so-called Operational MVP licenses for broker-dealer and exchange services since mid-2023, the Virtual Assets Regulatory Authority’s register shows. Operational MVP is an interim stage before getting a full VASP license.

One of the final steps VARA required before granting a VASP license was Zhao ceding voting control of the Dubai entity, called Binance FZE, the people said, asking not to be named discussing private deliberations. Officials wanted to ensure that Dubai didn’t diverge from the agreement Binance reached with US authorities, under which Zhao was forced to relinquish his CEO position, they said.