Dubai Subsidiary Secures Virtual Asset Service Provider VASP Authorization
Dubai’s authority overseeing virtual assets, VARA, has recently issued a license to Binance FZE, the Dubai-based arm of the cryptocurrency exchange Binance. This Virtual Asset Service Provider (VASP) license marks a significant milestone for Binance’s operations in Dubai.
Binance announced on Wednesday that following the acquisition of the VASP license, it intends to transition all users residing in the UAE from its global platform to the locally regulated Binance FZE exchange. The company detailed in a blog post that this move necessitates UAE users to refresh their Know Your Customer (KYC) details by submitting the required documents before the December 15 cut-off date. Binance assured that the range of products currently offered on its global exchange will remain accessible on the Binance FZE platform.
In related news, Binance’s commitment to compliance is underscored by its recent collaboration with China and the UAE to intensify efforts against cryptocurrency-related crimes.
The journey to obtaining the VASP license was not without its challenges. Binance FZE had previously retracted its application for a license in Abu Dhabi, citing heightened regulatory scrutiny. This decision, as reported by crypto.news, came seven months prior to the VASP license acquisition. Binance’s division, BV Investment Management, had withdrawn its application from the Financial Services Regulatory Authority of the Abu Dhabi Global Market (FSRA).
Dominic Longman, a senior executive at Binance Abu Dhabi, shared insights in a late May interview with crypto.news, highlighting a growing interest in cryptocurrencies among institutional investors in the region. He pointed out the absence of Bitcoin ETFs in the UAE but suggested that regulatory frameworks could adapt to align with international trends and local market needs.
Binance had already set its sights on expanding in Dubai back in 2023, when it secured an operational Minimum Viable Product (MVP) license from VARA, aimed at serving institutional and select retail investors. Following Binance’s lead, other cryptocurrency exchanges like Crypto.com, Bybit, and OKX have also obtained similar preparatory licenses from VARA.
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The UAE has emerged as a notable player in the global bitcoin mining landscape, now contributing to 3.7% of worldwide mining activities.
