Binance has secured a virtual asset service provider license from Dubai’s Virtual Assets Regulatory Authority (VARA). This move allows the firm to shift all its users in the UAE to its local application, Binance FZE exchange.
According to Binance, users who reside in the United Arab Emirates will progressively receive emails requesting them to update their KYC information by sending in specific papers by the deadline.
Binance FZE Gets Regulatory Nod
Binance declared that by December 15, 2024, all accounts held by residents of the United Arab Emirates will move from Binance’s international platform to the locally governed Binance FZE exchange, also known as Binance Dubai.
According to the crypto exchange, part of this procedure will involve updating Know Your Customer (KYC) data. Users will receive an email requesting the required paperwork, which must be turned in by December 15, 2024. This change will improve user experience while guaranteeing adherence to regional laws.
Why Is Dubai Important For Binance?
Dubai has been a hotspot for many crypto exchanges. Cryptocurrencies are neither permitted nor acknowledged as legal tender by the Central Bank of the United Arab Emirates. Cryptocurrency assets, however, are not prohibited and can be traded on cryptocurrency trading platforms. Crypto ownership, depositing, and trading are permitted for UAE nationals.
The popularity of cryptocurrencies has increased across the Middle East, per a recent Bitget Research analysis. By 2024, there will be 500,000 cryptocurrency traders operating in the region on a daily average. This number shows a 166% year-over-year growth.
Numerous variables, including supportive regulatory environments, the acceptance of Bitcoin ETFs, and the general optimism around the cryptocurrency market, are contributing to this spike in the adoption of cryptocurrencies. Meanwhile, 72% of cryptocurrency users in the United Arab Emirates (UAE) actively invest in Bitcoin.
With today’s update, the Binance crypto exchange has promised its users in the Middle East that they may be confident that the changeover process won’t impact their current account functioning. Until the transition deadline, users can still access Binance Global services.
Their accounts will automatically move to Binance FZE after December 15, 2024. Users’ email addresses, passwords, login information, and unique identification numbers (UIDs) won’t change, guaranteeing a non-cumbersome and ongoing transfer.
