Binance secures cryptocurrency license in Dubai after CZ steps down
Key Takeaways
- Binance has secured a virtual asset service provider license in Dubai, expanding and supporting its strategy to make the UAE a hub for Web3 and digital assets.
- Changpeng Zhao gave up his voting rights within Binance FZE as a measure to comply with the regulatory requirements of VARA.
- He has faced legal troubles in the United States, including pleading guilty to felony charges and resigning as CEO.
Binance, the world’s leading cryptocurrency exchange Successfully obtained VASP (Virtual Asset Service Provider) license in Dubai.
This achievement occurs later. Binance co-founder Changpeng Zhao, also known as CZ, has given up his voting rights in the Dubai-based company. Binance FZE.
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The license will allow Binance to expand its services in the region in line with those of cryptocurrency exchanges. We plan to transform the UAE into a central hub for Web3 and digital assets. It is about moving away from the region’s economic dependence on fossil fuels.
Alex Chehade, General Manager of Binance Dubai, explained:
Binance confirmed that the UAE’s senior leadership wants to establish the region as a hub for Web3. They are trying to diversify away from fossil fuels and
I see this as a great driving force to do that.
CZ’s relinquishment of its voting rights is considered part of the Company’s voting compliance efforts. Virtual Asset Regulatory Authority (VARA) regulatory standards; Especially considering him legal issues in america.
In 2023, Binance reached a $4.3 billion settlement with U.S. authorities for violations of anti-money laundering standards under the Bank Secrecy Act, which also resulted in: Zhao pleaded guilty to related felony charges and resigned as CEO. His sentencing is scheduled for April 30.
However, Binance CEO Richard Teng said: The details of his decision to give up his right to vote have been speculative.
That’s pure speculation. Again, we do not comment on media speculation… Our relationships and dealings with regulators are confidential.
Despite facing challenges, obtaining the license demonstrates Binance’s commitment to comply with local regulations and contribute to local economic diversification.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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