Dubai’s crypto regulator has granted a virtual asset provider license to Binance’s Dubai-based branch, Binance FZE.

Cryptocurrency exchange Binance announced that its Dubai branch, Binance FZE, has secured a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). With this license, Binance plans to migrate all UAE residents from the Binance Global Exchange to the VARA-regulated Binance FZE exchange.

UAE resident users will need to update their KYC information by submitting specific documents by the December 15 deadline. Despite the transition, all products currently available on the Binance Global Exchange will also be available on Binance FZE.

Binance obtained the VASP license seven months after withdrawing its application for an Abu Dhabi license due to increased regulatory pressures.

Binance’s unit, BV Investment Management, had previously pulled its application with Abu Dhabi Global Market’s Financial Service Regulatory Authority (FSRA). Dominic Longman, senior executive officer at Binance Abu Dhabi, noted the exchange is observing increasing institutional interest for crypto in the region. He also mentioned that while there are no Bitcoin ETFs available in the UAE, regulatory approaches can evolve based on global trends and local market demands.

Binance set its sights on Dubai in 2023 when its local subsidiary obtained an operational Minimum Viable Product (MVP) license from VARA to serve institutional and qualified retail investors. Other crypto exchanges such as Crypto.com, Bybit, and OKX have also pursued similar preparatory licenses from VARA.

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