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In the wake of co-founder Changpeng Zhaos departure, Binance, the worlds leading cryptocurrency exchange, has secured a pivotal regulatory license in Dubai.
What Happened: Binance was awarded its Virtual Asset Service Provider (VASP) license after Zhao gave up his voting power in Binance FZE, the local entity, CoinTelegraph reported. This action was the final requirement set by the Virtual Assets Regulatory Authority (VARA) for the license approval.
Zhao, who admitted to a felony count for failing to maintain sufficient AML protocols, stepped down as part of the plea agreement. His sentencing is set for April 30, with a possible prison term of up to 18 months.
VARA officials were cautious not to meddle with Binances recent U.S. settlement, leading to the requirement for Zhao to relinquish his voting rights in Binance FZE. However, Zhao continues to be the ultimate beneficial owner of Binance FZEs parent company based in Abu Dhabi.
Binance Dubais general manager, Alex Chehade states that securing a full license in the United Arab Emirates is a key focus for Binances future operations.
Also Read: Binance Has Moved Past Its Old Ways, Says CEO Richard Teng
Why It Matters: The license is a significant achievement for Binance, which has been under intense regulatory scrutiny, especially after the FTX collapse. In November 2023, Binance agreed to a $4.3 billion settlement with U.S. authorities over charges related to inadequate Anti-Money Laundering protocols.
Despite facing legal challenges and a hefty fine, Zhao has remained a dominant figure in the crypto world, retaining his position as the richest person in crypto and one of the top 50 wealthiest people globally. His leadership has been instrumental in Binances success since its establishment in 2017.
Binance is actively working to improve its reputation and embrace regulatory compliance. CEO Richard Teng stated at the Paris Blockchain Week that the company has moved past its old ways as it matures.
What's Next: The influence ofBitcoin as an institutional asset classis expected to be thoroughly explored at Benzinga's upcomingFuture of Digital Assetsevent on Nov. 19.
Read Next: Despite $4.3 Billion In Fines, Changpeng Zhao Stays On Forbess Richest Crypto Billionaire List, Amassing More Than $33 Billion From Binance
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.Loading… Loading… Market News and Data brought to you by Benzinga APIs
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