UAE Central Bank Issues Landmark Licenses to Crypto Exchanges M2 and CoinMENA**
A significant regulatory milestone has been achieved in the UAE. As reported by Emarat Al Youm, the Central Bank (CBUAE) has granted its first full Virtual Asset Service Provider (VASP) licenses to local cryptocurrency exchanges M2 and CoinMENA. This marks the official activation of the UAE's comprehensive crypto regulatory framework established in late 2024.
The licenses, granted after rigorous assessment, permit these exchanges to provide brokerage and custody services specifically targeting institutional and qualified investors within the UAE. The CBUAE highlighted that this step prioritizes investor protection, market stability, and robust Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) compliance. Licensed entities must meet stringent requirements, including a minimum capital of AED 200 million.
This move solidifies the UAE's position as a leader in establishing clear, progressive digital asset regulation within the region. It provides crucial legal certainty for institutional participation and fosters a secure environment for crypto innovation to thrive under official oversight.
Binance continuously monitors global regulatory developments, including the significant progress in the UAE. We recognize the importance of such frameworks in building trust, ensuring market integrity, and driving sustainable growth for the digital asset ecosystem worldwide. Clear regulations are fundamental for mainstream adoption.
What impact do you expect regulated institutional crypto services to have on the broader UAE financial market?
