Dubai’s crypto regulator has granted a Virtual Asset Service Provider (VASP) license to Binance’s local branch, Binance FZE. This milestone, announced on Wednesday, allows Binance FZE to serve all UAE residents, who must update their KYC information by December 15.
Binance’s license comes seven months after the exchange withdrew its application for an Abu Dhabi license due to regulatory pressures. The new VASP license will enable UAE residents to access all products available on Binance Global Exchange through Binance FZE.
Previously, Binance obtained an operational Minimum Viable Product (MVP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) in 2023 to serve institutional and qualified retail investors. This move signals Binance’s strategic focus on the UAE, amidst increasing institutional interest in crypto within the region.
This license positions Binance to leverage Dubai’s evolving regulatory landscape, potentially setting a precedent for other exchanges and boosting the local crypto market’s growth. The long-term significance lies in Dubai’s potential to become a key global crypto hub.
