Dubai’s regulatory authority for cryptocurrencies has granted Binance FZE, the Dubai-based branch of Binance, a license to operate as a virtual asset service provider (VASP).
On Wednesday, cryptocurrency exchange Binance announced that its local branch, Binance FZE, had received the VASP license from Dubai’s Virtual Assets Regulatory Authority (VARA). According to a blog post, Binance intends to shift all UAE residents currently using Binance Global Exchange to the VARA-regulated Binance FZE exchange.
Users in the UAE are required to update their KYC (Know Your Customer) information by submitting necessary documents before the December 15 deadline. Binance assured users that despite the transition, all existing products on Binance Global Exchange will remain available on Binance FZE.
This milestone comes seven months after Binance withdrew its application for a license in Abu Dhabi, citing heightened regulatory pressures. As reported by crypto.news, Binance’s BV Investment Management unit had retracted its application with Abu Dhabi Global Market’s Financial Service Regulatory Authority (FSRA).
In a recent interview with crypto.news in late May, Dominic Longman, senior executive officer at Binance Abu Dhabi, highlighted growing institutional interest in cryptocurrencies within the region. He noted the absence of Bitcoin ETFs in the UAE but suggested regulatory frameworks could adapt to global trends and local market demands over time.
Binance turned its focus to Dubai in 2023, when its local subsidiary secured an operational Minimum Viable Product (MVP) license from VARA, enabling it to cater to institutional and qualified retail investors. Other major crypto exchanges like Crypto.com, Bybit, and OKX have also pursued similar preparatory licenses from VARA.
For more insights, the UAE currently contributes to 3.7% of the global bitcoin mining activity, underscoring its emerging role in the cryptocurrency landscape.