Binance Scores Landmark VASP License in Dubai, UAE Users to Migrate
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Binance’s relationship with controversy is well-documented, yet the company remains steadfast in its expansion goals. In a highly anticipated move, Binance has secured a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), marking a significant shift for its users in the UAE.
Transition to Binance Dubai
Binance announced that by December 15, 2024, all UAE resident accounts will migrate from Binance’s global platform to the locally regulated Binance FZE exchange, known as Binance Dubai.
As part of this transition, users are required to update their Know Your Customer (KYC) information. Binance will communicate with users via email to guide them through the KYC process, ensuring compliance with local regulations.
Under the VASP license, Binance Dubai will offer a wide range of services, including cryptocurrency exchange, broker-dealer services, lending and borrowing, as well as virtual asset management and investment services. The platform will support over 300 virtual assets and facilitate deposits and withdrawals in local fiat currency (AED).
Asset Management and Compliance
Assets that are not supported on Binance Dubai will be liquidated before the KYC deadline, with specific timelines varying per asset. Users holding both Binance.com and Binance Dubai accounts will need to select one account to maintain, as multiple accounts per user will not be permitted on Binance FZE.
To encourage early compliance, Binance is running a promotion where users who complete their KYC updates before October 30, 2024, stand a chance to win from a total prize pool of $500,000 in Bitcoin, including a grand prize of 1 BTC.
This regulatory shift follows Binance’s strategic decision to focus on the Middle East amid tightening regulations in Western markets. This marks a significant step forward after Binance Dubai entered the third stage of Dubai’s regulatory process last year.
Eyeing the 200 Million User Milestone
Binance is nearing the milestone of 200 million users, currently boasting about 188 million users on its cryptocurrency exchange platform. This user base surpasses that of its competitor Coinbase, which has 108 million users. Binance’s new CEO, Richard Teng, who took over from Changpeng Zhao in November, anticipates reaching over 200 million users globally soon. Teng attributes this growth to increased institutional adoption, more institutional investments entering the crypto space, clearer regulatory frameworks, and approvals of digital asset products in various jurisdictions, which are attracting new investor classes.
Future Prospects in Dubai
After struggling with regulations in multiple countries, only time will tell if Binance can establish a positive legacy in Dubai.
Read Also: Binance Delists Major Cryptocurrencies: Impact on SHIB, LINK, and Other Altcoins
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