Binance’s Dubai unit wins VASP license

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

Cryptocurrency exchange Binance said on Wednesday that its Dubai branch, Binance FZE, has secured a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).

In a blog post, the exchange revealed that with this license, it plans to migrate “all UAE residents from the Binance Global Exchange to the VARA-regulated Binance FZE exchange.”

The exchange also stated that UAE resident users would need to update their KYC information by submitting certain documents by the December 15 deadline. Binance added that despite the transition, “all products already 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. As crypto.news reported, Binance’s unit, BV Investment Management, had pulled its application with Abu Dhabi Global Market’s Financial Service Regulatory Authority (FSRA).

In a late May interview with crypto.news, 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 also pursued Binance in securing the same preparatory license from VARA.