Binance, one of the largest cryptocurrency exchanges in the world, has recently announced a significant transition for its users in the United Arab Emirates (UAE). Following the receipt of a full Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), Binance will be migrating all accounts of UAE residents from its global platform to the locally regulated Binance FZE exchange, also known as Binance Dubai. This transition process is set to begin immediately and users have until December 15, 2024, to update their Know Your Customer (KYC) information.
During the transition period, UAE users can continue to access their existing accounts and services on the Binance Global platform. However, after December 15, all accounts will be automatically moved to Binance Dubai, with login credentials and user IDs remaining the same. Binance FZE will provide a range of services including exchange, broker-dealer, lending and borrowing, as well as virtual asset management and investment services. The platform will support over 300 virtual assets and allow users to make deposits and withdrawals in the local fiat currency, AED.
To facilitate the transition process, Binance will be liquidating unsupported assets for users who do not complete the KYC process by the deadline. Those with both Binance.com and Binance Dubai accounts will need to choose which account to maintain, as Binance FZE has a policy of one account per user. To encourage early compliance, Binance is offering a promotion for users who complete their KYC updates before October 30, 2024, with a total reward pool of $500,000 in Bitcoin up for grabs.
The expansion of services in Dubai was made possible by Binance Dubai receiving a VASP license from VARA in April. This marks a significant milestone for Binance, as it demonstrates a commitment to complying with local regulations and providing a secure trading environment for users in the UAE. The decision to focus on the Middle East comes after regulatory pressures in Western markets forced Binance to deregister in the UK and leave other countries like the Netherlands and Cyprus.
However, Binance continues to face challenges in Europe, with the implementation of regulations around stablecoins as part of the European MiCA initiative. As a result, Binance will have to restrict access to certain services based on “unauthorized stablecoins” and suspend its copy trading service. Despite these challenges, Binance remains committed to providing innovative and compliant services to its global user base, with a focus on building a strong presence in the UAE and other emerging markets.
