Binance to Migrate UAE Users to Regulated Dubai Platform

BySamson Ononeme

Jun 26, 2024
Binance secures full VASP license in Dubai, initiates user migration process with KYC updates required, highlighting focus on Middle East expansion.

Key Insights

  • Binance announces migration of UAE resident accounts from its global platform to the locally regulated Binance Dubai (Binance FZE).
  • UAE users must update KYC information by December 15, 2024, with Binance offering incentives for early compliance.
  • This strategic move comes as Binance faces regulatory challenges in Western markets.

DUBAI (MarketsXplora) – Binance, the world’s largest cryptocurrency exchange by trading volume, announced on Wednesday a significant transition for its United Arab Emirates (UAE) users following the acquisition of a full Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).

The move will see all UAE resident accounts migrated from Binance’s global platform to the locally regulated Binance FZE exchange, also known as Binance Dubai, marking a pivotal shift in the company’s operations in the region.

UAE Residents Face Deadline for Binance Account Migration

The transition process, commencing immediately, requires UAE residents to update their Know Your Customer (KYC) information by December 15, 2024. Users will receive email instructions detailing the necessary documentation for submission.

“This transition underscores our commitment to regulatory compliance and our dedication to providing a secure trading environment for our UAE users,” a Binance spokesperson told MarketsXplora.

During the transition period, UAE users can continue to access their existing Binance Global accounts and services. Post-December 15, accounts will be automatically transferred to Binance Dubai, with login credentials and user IDs remaining unchanged.

Binance FZE is set to offer a comprehensive 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.

However, the exchange warned that “unsupported assets will be liquidated by the KYC deadline before eligible users are migrated to the Binance Dubai regulated platform.”

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.

This development comes as Binance faces regulatory challenges in Western markets. The exchange has had to deregister in the UK and exit the Netherlands and Cyprus. More recently, Binance has had to restrict services in Europe due to new regulations concerning stablecoins as part of the European Markets in Crypto-assets (MiCA) initiative.

“The Middle East, particularly the UAE, represents a key growth market for Binance amid regulatory pressures elsewhere,” said a cryptocurrency market analyst who wished to remain anonymous due to the sensitivity of the topic.

The VASP license, granted by VARA in April, allows Binance to expand its services in Dubai, a move that aligns with the exchange’s strategic focus on the Middle East.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

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