UAE Steps Up Crypto Game: Binance Licensed, Stablecoin Regulations Implemented

  • UAE crypto regulation advances with Binance’s VASP license, enhancing local compliance and innovation.
  • Global regulatory momentum grows with stablecoin frameworks in UAE, Australia, and MiCA guidelines in the EU.
  • Enforcement actions highlight market integrity, with TerraForm’s $4.5B fine and UK’s unregistered exchange shutdown.

Binance’s Dubai arm, Binance FZE, has secured a crucial Virtual Asset Service Provider (VASP) license from VARA, Dubai’s Virtual Assets Regulatory Authority, signaling a significant step in the exchange’s regional expansion and regulatory compliance efforts.

As a result, all UAE residents with accounts on the Binance Global Exchange will transition to the VARA-regulated Binance FZE exchange.

Users who update their Know Your Customer (KYC) information by October 30, 2024, will be entered into a prize draw for a share of $500,000 in BTC rewards. The grand prize is 1 BTC, with winners to be announced via email on January 1, 2025.

Furthermore, UAE resident users will gain access to bank deposits and withdrawals in AED, as well as over 300 virtual assets on Binance FZE, mirroring the offerings of the Binance Global Exchange.

In parallel, the UAE Central Bank has approved regulations for licensing and overseeing stablecoin arrangements. This framework will govern UAE dirham-backed stablecoins, further solidifying the UAE’s position as a hub for crypto-asset innovation. This initiative is part of the UAE’s Financial Infrastructure Transformation Programme, aimed at promoting innovation and digitization within the economy.

Meanwhile, the Dubai Financial Services Authority (DFSA) has released amendments to its Crypto Token Regime. These changes include clarifications on reporting requirements for custodians, application fees for crypto token authorization, and compliance with Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) measures. These amendments aim to adapt to the evolving crypto market and enhance regulatory oversight.

In the United States, the SEC has dropped an enforcement case involving the Ethereum network, providing a degree of relief to the crypto industry. Additionally, Australia is set to incorporate stablecoin provisions into upcoming crypto legislation, while South Korea has introduced rules for routine token listing reviews to safeguard consumers.

In the wake of the Terra/UST stablecoin collapse, Terraform Labs and its founder Do Kwon will pay $4.5 billion in fines for securities fraud. The UK has also dismantled a major unregistered crypto exchange, underscoring its commitment to upholding crypto-asset registration integrity.

Finally, the European Banking Authority (EBA) has published guidelines for stablecoin issuers under the Markets in Crypto-Assets (MiCA) regulation, and Italy has adopted new rules for imposing fines related to market conduct violations in the crypto sector.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

https://coinniu.com/uae-steps-up-crypto-game-binance-licensed-stablecoin-regulations-implemented/

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