Binance Secures Dubai VASP License for Local Exchange Binance FZE

Binance, a crypto exchange, has been granted a Virtual Asset Service Provider (VASP) license by Dubai’s Virtual Assets Regulatory Authority (VARA). 

Meanwhile, this license applies specifically to Binance FZE, the company’s local exchange in Dubai, marking a step in Binance’s ongoing global expansion efforts.

Residents of the United Arab Emirates using Binance will need to transition from Binance Global to Binance FZE. Binance has announced that this process will involve updating Know Your Customer (KYC) information. Users will receive an email requesting the necessary documentation, which must be submitted by December 15, 2024. This transition aims to ensure compliance with local regulations and enhance user experience.

Binance announced that it has received a Virtual Asset Service Provider (VASP) licence from Dubai’s Virtual Assets Regulatory Authority (VARA) for its local exchange in Dubai, Binance FZE. All UAE resident users will gradually be contacted via email to update their KYC…

— Wu Blockchain (@WuBlockchain) June 26, 2024

Continuity of Account Access and Credentials

Binance has assured users that the transition process will not affect their current account functionality. Users can continue to access Binance Global services until the transition deadline. After December 15, 2024, their accounts will automatically migrate to Binance FZE. Importantly, users’ unique identification numbers (UIDs), login credentials, passwords, and email addresses will remain unchanged, ensuring a smooth and uninterrupted transition.

Binance has introduced a promotional period from June to the end of October 2024 to encourage timely KYC updates. UAE residents who complete their KYC verification before October 30 will be eligible to enter a draw for a prize of 1 Bitcoin (BTC). The prize will be distributed on January 1, 2025, via the BNB Smart Chain Hash Value. This incentive underscores Binance’s commitment to facilitating a smooth user transition.

Binance FZE Services and Future Plans

Binance FZE, regulated by VARA, will offer various services, including broker-dealing, lending and borrowing, virtual asset management, and investment services. Only users who complete the KYC process during the promotional period can participate in these activities. In addition to the transition plans, Binance has announced delisting several tokens, including Shiba Inu and Chainlink, as part of its efforts to streamline the user experience on its platform.

Binance currently boasts approximately 188 million users, surpassing its competitor Coinbase, which has 108 million users. The company aims to exceed 200 million users worldwide under the leadership of CEO Richard Teng, who took over from Changpeng Zhao in November. Teng commented, 

“We’re seeing much greater institutional adoption and institutional money coming into this space … [on] much greater regulatory clarity and a lot more jurisdictions approving [digital asset] products that bring in new investor classes.”

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