- Binance received a license to operate in Dubai under new regulations.
- BNB’s price remained stable, but sentiment around the token declined.
In a move towards regional compliance, cryptocurrency exchange Binance[BNB] announced that its Dubai subsidiary, Binance FZE, was granted a VASP license by Dubai’s regulatory authority, VARA, on 26th June.
Binance makes big moves
The cryptocurrency exchange Binance launched a regulated entity, Binance FZE, in Dubai. This entity is licensed by the Dubai Virtual Assets Regulatory Authority (VARA) to provide a variety of virtual asset services.
This move comes after Binance withdrew its application for a license in Abu Dhabi earlier in the year. Despite this, Binance remains optimistic about the future of cryptocurrency in the region.
Binance established its presence in Dubai in 2023, securing an MVP license from VARA. This license allows them to serve institutional investors and qualified retail investors.
The move to Dubai reflects a trend within the crypto industry, with other exchanges like Crypto.com, Bybit, and OKX also obtaining similar licenses from VARA.
Binance is on the verge of a major user base milestone. With 188 million users currently on its platform, the cryptocurrency exchange is nearing the 200 million mark. This surpasses its closest competitor, Coinbase, which has 108 million users.
Taking the helm in November, Binance’s new CEO, Richard Teng, is optimistic about further growth. He anticipates reaching over 200 million users globally soon.
Teng attributes this recent surge to several factors. Increased institutional adoption is a key driver, with more institutions entering the crypto space with their investments.
Additionally, clearer regulatory frameworks and approvals of digital asset products in various jurisdictions are creating a more welcoming environment for new investors.
This diverse range of factors is attracting new investor classes to the platform, fueling Binance’s user base growth.
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What’s next?
Despite the progress made by the exchange, the price of BNB continued to decline. At press time, BNB was trading at $577.07 and its price had declined by 3.71% in the last 24 hours.
The social volume for BNB fell implying a waning popularity amidst social media platforms. Moreover, the weighted sentiment around the token had decreased, indicating a rise in negative sentiment around BNB.
Source: Santiment
Read More: Binance expands its Middle East presence: What’s next for BNB?
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