Binance has announced a significant transition for its United Arab Emirates (UAE) users. Following the receipt of a full Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), Binance will migrate all UAE resident accounts from its global platform to the locally regulated Binance FZE exchange (Binance Dubai).
The transition process, set to begin today (Wednesday), will require UAE residents to update their Know Your Customer (KYC) information by December 15, 2024. Users will be contacted via email with instructions on submitting the necessary documentation.
During the transition period, UAE users can continue to access their existing Binance Global accounts and services. After December 15, accounts will be automatically moved to Binance Dubai, with login credentials and user IDs remaining unchanged.
Binance FZE will offer a range of services, including exchange, broker-dealer, lending and borrowing, and virtual asset management and investment services. The platform will support over 300 virtual assets and provide access to local fiat currency (AED) deposits and withdrawals.
Binance guides UAE users to transition accounts to VARA-regulated Binance FZE
Crypto exchange Binance has announced on its official website that all UAE residents will transition their accounts from the Binance Global Exchange to the Binance FZE exchange, regulated by the Dubai…
— CoinNess Global (@CoinnessGL) June 26, 2024
“Unsupported assets will be liquidated by the KYC deadline before eligible users are migrated to the Binance Dubai regulated platform. The exact date of liquidation may vary from asset to asset as liquidation may take place near the deadline,” Binance commented.
Users with both Binance.com and Binance Dubai accounts will need to choose which account to maintain, as Binance FZE will not allow multiple accounts per user. Those who do not complete the KYC process by the deadline will have their accounts restricted to withdrawal-only mode.
To incentivize early compliance, Binance is offering a promotion for users who complete their KYC updates before October 30, 2024. Participants will be entered into a prize draw with a total reward pool of $500,000 in Bitcoin, including a grand prize of 1 BTC.
Binance Dubai Expand Services
The movement described above is possible thanks to the decision made in April, when Binance Dubai received a VASP license from VARA. This development comes nearly a year after Binance entered the third stage of Dubai’s four-stage regulatory process.
As Finance Magnates reported in June last year, Binance decided to focus on the Middle East due to regulatory pressures in Western markets. For instance, Binance had to deregister in the UK, and also leave the Netherlands and Cyprus.
More problems in Europe emerged today with the implementation of regulations concerning stablecoins as part of the European MiCA initiative. Due to these regulations, Binance will have to restrict access to a range of services based on “unauthorized stablecoins” and suspend its copy trading service.
