Binance, the world’s leading cryptocurrency exchange, has announced a significant step towards regional compliance with the acquisition of a full Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) for its local entity, Binance FZE.
This milestone marks a shift for UAE users, who will be transitioned from the global Binance platform to the VARA-regulated Binance FZE exchange.
The full VASP license signifies Binance’s commitment to regulatory compliance, innovation, and user protection within the dynamic landscape of digital assets.
This achievement follows the issuance of a Minimum Viable Product (MVP) license in July 2023, paving the way for a broader range of services offered by Binance FZE.
What it Means for UAE Users
All users residing in the United Arab Emirates will be transitioned from the global Binance exchange to the newly licensed Binance FZE platform. This transition ensures compliance with VARA regulations and potentially opens the door to a wider range of services tailored for the UAE market.
To facilitate a smooth onboarding process, Binance will contact UAE users via email to update their Know Your Customer (KYC) information. This may involve submitting additional documents to meet the VARA’s KYC requirements by the deadline of December 15th, 2024.
Benefits of the VARA License
The VASP license empowers Binance FZE to offer a comprehensive suite of digital asset services to UAE users, including:
- Spot trading: Buying and selling cryptocurrencies directly.
- Lending and borrowing: Earning interest on crypto holdings or borrowing crypto assets.
- Staking: Earning rewards for holding certain cryptocurrencies.
- Broker-dealer services: Investment opportunities facilitated by Binance FZE.
- VA (Virtual Asset) Derivatives Trading (limited): Access to derivatives contracts for qualified and institutional investors (restrictions may apply).
Binance’s embrace of regulations aligns with Dubai’s vision to become a global hub for innovation and blockchain technology. The VARA license strengthens Binance’s position within the region’s burgeoning crypto ecosystem while promoting user protection and responsible market development.