Binance’s Dubai branch, Binance FZE, has obtained a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).
Binance plans to migrate all UAE residents from the global platform to the VARA-regulated Binance FZE exchange. UAE users must update their KYC (Know Your Customer) information by December 15th, 2024. Binance assures users that all existing products will be available on both platforms.
This development comes seven months after Binance withdrew its Abu Dhabi licensing application due to stricter regulations. Despite the lack of Bitcoin ETFs in the UAE, Dominic Longman (Binance Abu Dhabi) predicts evolving regulatory approaches based on market trends.
In 2023, Binance’s Dubai subsidiary secured an MVP license from VARA to serve qualified regional investors. Other exchanges like Crypto.com, Bybit, and OKX also obtained similar licenses from VARA.
Binance’s VASP license acquisition and user migration plan highlight Dubai’s growing role as a crypto-friendly hub. This shift reflects the evolving regulatory landscape in the Middle East, with Dubai taking a more progressive stance towards cryptocurrencies.
