Binance drops Abu Dhabi, keeps Dubai, but will Dubai drop Binance?

Binance drops Abu Dhabi, keeps Dubai, but will Dubai drop Binance?

Binance one of the biggest global crypto exchanges has withdrawn and dropped its license application with Abu Dhabi’s ADGM ( Abu Dhabi Global Market) while it retains its license application at Dubai’s VARA ( Virtual asset regulatory authority).

This comes exactly one year after Binance received a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), the international financial center of the UAE’s capital emirate.

The withdrawn license would have allowed Binance to manage a Collective Investment Fund, under conditions that BV Investment Management Limited may not hold or control Client Assets; and BV Investment Management Limited may not deal with Retail Clients as defined under the FSRA Conduct of Business Rules (COBS).

This should not be a surprise given that recently Richard Teng, Binance’s new CEO during the FT Crypto and Digital Assets Summit, would not name the location of the company’s headquarters yet admitted that Binance’s Middle Eastern headquarters is in Dubai, while its European headquarters is in France.

He suggested that the location of the global headquarters would be disclosed when deemed appropriate.

So it seems that Binance is putting all its license eggs in one basket in the UAE, with Dubai’s VARA. Some have speculated that most probably they will receive the license in Dubai and thus do not need to have one in Abu Dhabi. Yet the License in Dubai is still not in the bag.

In early December Dubai’s virtual asset regulator came out with a statement, saying that it is continuing to asses and monitor Binance activities to strict regulatory requirements, rigorous KYC and due diligence. As per VARA, Binance FZE crypto exchange currently only holds a Minimum Viable Product [MVP] Operational License with VARA, which allows them access to a restricted client base. As such to date, Binance has on boarded approximately 180 qualified investors and institutional clients.

As per Reuters, the exchange deemed it unnecessary given the reassessment of global licensing needs.

Binance’s custodial license application within ADGM is still active until May 2024.

Binance is not the only crypto exchange to have withdrawn its license in ADGM, BitOasis also withdrew its license in ADGM, as has DEX.

This comes after M2 became a fully licensed crypto exchange from Abu Dhabi UAE which can offer retail clients crypto exchange services.

UAE headquartered Fasset crypto exchange joins the regulated VASP community in Dubai

UAE headquartered Fasset crypto exchange joins the regulated VASP community in Dubai

In less than a year UAE headquartered, Fasset, digital assets platform, has gone from receiving an initial approval for an FMP license to becoming a fully licensed VASP crypto broker in UAE.

In May 2023 Fasset, a digital asset exchange platform with a vision to offer affordable and frictionless gateway for people in emerging markets to own and grow their wealth in digital assets  announced  that it has been granted an Initial Approval for a Full Market Product (FMP) license by the Dubai’s Virtual Assets Regulatory Authority (VARA) in UAE.

Mohammad Raafi Hossain, Founder and CEO of Fasset, told LaraontheBlock, “Our ability to connect loved ones, families and small businesses across borders while transporting economic value across borders -is a milestone and a historic shift in the way we will all operate in the near future.”

He also commented that the license will strengthen Fasset’s portfolio and connect regions  like Indonesia, Malaysia, Bangladesh, Pakistan, and Turkey. Fasset users can now confidently transfer assets from the GCC to Asia, enabling sustainable and ethical wealth growth in one of the world’s busiest remittance corridors.

Previously, Hossain had noted in a LinkedIn post that 47.8% of the world’s household wealth is owned by 1.2% of the people. He stated, “ It’s becoming increasingly clear that the traditional routes to asset ownership are no longer equitable; as access to high quality assets – be it real estate, commodities or equities – are only easily attainable to a mere fragment of the world’s population. A fresher approach of tokenization and crypto can positively impact emerging markets by giving everyone an equal chance to own high quality real world and digitally native assets.”

Fasset recently received a strategic investment from Investcorp as it prepared for a series B funding round.

This license follows Fasset’s launch in Indonesia in August, where it partnered with Mastercard Indonesia and telco giant Indosat Ooredoo Hutchison.

Fasset;s license comes on the same day that CoinMENA has received its license, and just a week after Abu Dhabi M2 received theirs.

Binance crypto exchange is being monitored by Dubai’s Virtual asset regulator

Binance crypto exchange is being monitored by Dubai’s Virtual asset regulator

As the woes pack up on Binance crypto exchange, first with the guilty plea from CZ, and then Ronaldo being sued because he promoted Binance products, the Dubai Virtual asset regulator VARA has made a statement that it is continuing to asses and monitor Binance activities to strict regulatory requirements, rigorous KYC and due diligence.

As per VARA, Binance FZE crypto exchange currently only holds a Minimum Viable Product [MVP] Operational License with VARA, which allows them access to a restricted client base. As such to date, Binance have on boarded approximately 180 qualified investors and institutional clients.

VARA notes that it  cannot comment on regulatory and enforcement actions taken on business conducted in other jurisdictions, but does assure, “ We have been, and will continue to be, closely monitoring ongoing developments and specifically how they relate to Binance FZE operations in accordance with our commitment to uphold market integrity, consumer protection, and the security of the domestic ecosystem.”

Binance while being one of the first to apply for a license in the UAE, has been late in receiving a license while others such as M2 in Abu Dhabi, RAIN crypto broker, CoinMENA, Fasset,  and many others have been able to become fully licensed.

It seems that Richard Teng, the new CEO of Binance will have a lot on his plate in the coming months.

Dubai Chambers collaborates with Korean Blockchain game developer Wemade for UAE gaming ecosystem

Dubai Chambers collaborates with Korean Blockchain game developer Wemade for UAE gaming ecosystem

The Biggest South Korean blockchain enabled game developer, Wemade has announced its collaboration with UAE’s Dubai Chambers to develop the blockchain gaming ecosystem in Dubai and UAE.

The two are in talks to contribute to game development industry initiatives. A meeting between Henry Chang, the CEO of Wemade and  H.E. Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers  marked the next phase of Wemade’s efforts to support and grow blockchain gaming ecosystems in Dubai and the UAE.

As an advocate for the interests of Dubai’s business community, Dubai Chambers serves as a bridge connecting the local business community with Dubai’s dynamic government and is committed to ensuring a thriving environment in which businesses can flourish. The chamber seeks to facilitate and improve the ease of doing business in the emirate and advance Dubai’s position as a highly competitive global commercial center.

“The UAE is among the most dynamic regions building the next generation of games and gaming industry talent with Dubai and key stakeholders including Dubai Chambers playing an important role,” said Henry Chang, CEO, Wemade. “Wemade will focus on working with Dubai Chambers to explore how we can contribute our expertise and technology to support key initiatives including the Dubai Program for Gaming 2033.”

H.E. Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, commented: “We are pleased to initiate this collaboration with Wemade, which will contribute to driving innovation in the UAE’s rapidly evolving digital ecosystem. Dubai’s growing influence in the global gaming and blockchain arenas reflects our dedication to fostering an ecosystem that is rich in technological expertise. We remain committed to further strengthening the emirate’s position as a leading global hub at the heart of the digital economy.”

Unveiled recently by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman of The Executive Council of Dubai and Chairman of the Board of Trustees of Dubai Future Foundation (DFF), the Dubai Program for Gaming 2033 set out major industry goals. These are: to position Dubai among the top 10 cities in the global gaming industry; generate 30,000 new jobs in the gaming sector; significantly boost the sector’s contribution to the growth of Dubai’s digital economy; and increase the GDP by approximately US$1 billion by 2033.

Nine Blocks Capital is the first crypto hedge fund to receive license from Dubai’s regulator

Nine Blocks Capital is the first crypto hedge fund to receive license from Dubai’s regulator

Dubai’s virtual asset regulatory authority has just listed UAE based Nine Blocks Capital Management as a receiving a full VASP license and will make Dubai UAE its headquarters.

As per VARA website, Nine Blocks Capital will be able to offer crypto and virtual asset investment services to institutional and qualified investors.

Nine Blocks Capital received initial approval from VARA back in August 2022. Nine Blocks was launched by by PwC’s former global crypto head Henri Arslanian.

Nine Blocks is the investment manager of the Nine Blocks Master Fund, a market neutral crypto fund focused on generating alpha from inefficiencies in the crypto markets using relative value, arbitrage and quantitative strategies.
With around $100m in AuM and a track record of more than 2 years, Nine Blocks manages assets for many leading investors globally, from regulated financial institutions and private banks to public companies and fund of funds.
This license is the culmination of a process that started with an MOU between Nine Blocks and VARA, allowing knowledge sharing and consultation.
The Nine Blocks group was set-up in 2021 with the belief that institutional investors want digital assets exposure via fund managers who have established digital assets track record, are regulated, have traditional finance experience and comply with the highest operational due diligence requirements.
Henri Arslanian, co-founder and managing partner of Nine Blocks said, “We believe that a regulatory regime tailored for the fast-moving digital assets space can not only provide comfort to institutional allocators but also contribute to the growth of a healthy crypto ecosystem.The UAE is quickly becoming a leading jurisdiction globally for digital assets and we are honored to be part of this journey.”

Nine Blocks follows a market neutral trading strategy, profiting from arbitrage opportunities and market inefficiencies across the crypto space.

GCEX crypto broker becomes fifth licensed VASP in Dubai UAE

GCEX crypto broker becomes fifth licensed VASP in Dubai UAE

GC Exchange part of the GCEX Group, has been granted an Operational VASP Licence for VA Broker Dealer services from Dubai’s Virtual Asset Regulatory Authority (VARA)

GCEX, which opened its Dubai office in July 2022 and received its MVP (Minimal Viable Product) Preparatory Licence from VARA in February 2023, can now start market operations as a Virtual Asset Service Provider (VASP) in the Emirate of Dubai, enabling brokers, hedge funds, family offices and professional traders to access its deep liquidity in digital assets and range of technology solutions.

GCEX facilitates institutional access to digital assets through its proprietary XplorDigital trading solutions, which comprises of a technology-agnostic platform covering regulation, regulated custody, the safety of funds, tier 1 liquidity and technology (both back-end and front-end). GCEX only partners with regulated institutional digital custody and staking providers and always segregates client funds.

Mehtap Önder, Managing Director, GCEX in Dubai, commented in a press release, “VARA is leading the way in the global digital asset industry, and we are extremely proud to be one of the first firms to receive a VASP Operating Licence to provide Virtual Asset Broker-Dealer services and the first firm to gain approval to operate with a client money account, highlighting our focus on client protection.Being a regulated entity in the region is important to us – it’s the ideal way to demonstrate our commitment to adhering to international standards and implementing robust processes, with transparency and investor protection at the core of our offering. This is a major milestone for our business and is critical to GCEX’s growth strategy, enabling us to have a stronger presence in the region.”

GCEX Group enables institutional clients to access deep liquidity in FX and CFDs on digital assets, as well as digital assets spot trading and conversion and a broad range of trading solutions. Headquartered in London, with multiple offices across the globe, GCEX is regulated by the UK’s FCA and registered with the Danish FSA. True Global Ventures are investors in GCEX.

To date five crypto exchanges, Fuze, BackPack, Toko, Laser Digital, and GCEX have received full licences to operate in UAE under the VARA regime, with Crypto.com still awaiting final sign offs before it receives its full VASP license. The more well global names such as Binance, ByBit, OKX have yet to receive theirs, while BitOasis remains in frozen status.

Eighteen Dubai based virtual asset providers fined by Dubai’s regulator

Eighteen Dubai based virtual asset providers fined by Dubai’s regulator

In a market notice issued November 17th 2023, the Dubai Virtual Assets Regulatory Authority (VARA), confirmed that the deadline for VA sector to engage in the regulatory license elapsed today and that eighteen virtual asset service providers commercially licensed on mainland under Dubai’s Department of Economy and Tourism (DET) have thus far, been issued fines for failing to comply with VARA’s directives and regulatory guidance.

A VARA spokesperson declined to name the eighteen entities in question.

As per the notice, in line with VARA’s commitment to protect consumers, maintain market integrity, and manage security of the Virtual Economy being enabled in and from Dubai, these enforcement actions are a pre-requisite to remedy compliance breaches and assure global markets that VARA’s regime can be trusted to have consistency and resilience in deployment.

The Dubai virtual asset regulator stated that this would be an ongoing process, with additional fines, enforcement actions, and closure of unlicensed VASPs expected. VASPs have until year end to address any regulatory gaps.

Entities seeking to continue to offer virtual asset services in Dubai are urged to contact VARA immediately to avoid further penalties. Consumers are advised to check the VARA website for advice on approved VASPs in Dubai. For further information, please contact VARA via our website or via

This comes a day after CEO Henson Orser stepped down, and 10 days after VARA issued a notice asking all VASPs to finalize their license registrations and requirements.

But there have also been positive news in the VASP licensing arena, with entities such as Fuze Finance receiving a license as well as HexTrust and BackBack in the past 10 days.

UAE home grown Fuze Finance receives license from Dubai virtual asset regulator

UAE home grown Fuze Finance receives license from Dubai virtual asset regulator

UAE based Fuze Finance under the licensed name Morpheus Software Technology (FUZE) FZE has just received a full VASP license from Dubai’s Virtual asset regulatory Authority. Fuze offers embedded digital asset capabilities for financial institutions as a digital asset infrastructure provider for the Middle East.

VARA’s license will allow Fuze Finance to offer broker dealer services, allowing them to serve institutional investors, retail and qualified investors. Through this licence, the business will be able to serve customers through two core service lines: firstly, via digital assets as a service (DAAS) enabling banks, fintechs and enterprises to integrate B2B2C digital asset products natively into their channels and secondly, through a regulated Over-The-Counter (OTC) service providing investors with a technology-first option for executing institutional-level digital asset trading with ease and efficiency.

With a regional digital asset market worth $566bn, and growing at 48% YoY, Fuze co-founder and CEO, Mohammed Ali Yusuf believes the Middle East is the perfect home to establish a digital assets infrastructure business.

Ali Yufu on receiving the license noted, “We thank VARA for assessing and approving our licence. VARA’s comprehensive and consultative process demonstrates the robust framework at the heart of this booming industry. Across the UAE, digital assets businesses are being welcomed to a thriving ecosystem with regulation that matches rapid innovation and adoption. Businesses can now have full confidence in the regulated infrastructure that Fuze provides, as we support the world’s fastest-growing digital assets hub.”

In September 2023 UAE headquartered Fuze Finance, raised a seed round of $14mn, the largest Seed investment in a digital assets startup in the history of the Middle East and North Africa region (MENA). The investment was led by Abu Dhabi-based Further Ventures, along with participation by US-based Liberty City Ventures.

Fuze wanted to benefit from the strategic capital and network of these investors, acting as a catalyst for the business as it builds the digital asset infrastructure that will drive the future of finance.  A first-of-its-kind infrastructure provider in MENA, Fuze enables any bank, fintech or traditional enterprise to easily offer regulated digital assets products to their customers through their native apps.

Fuze was founded by an expert team of fintech, traditional finance (TradFi) and decentralized finance (DeFi) leaders, with its co-founders holding extensive knowledge from experience in global hypergrowth businesses.

CEO, Mohammed Ali Yusuf (Mo Ali Yusuf) has held prominent roles at Checkout.com and Visa; Arpit Mehta (COO) was previously in the leadership team at fintech leaders like Simpl and Clear; Srijan Shetty (CTO) built algorithmic trading systems at Goldman Sachs and worked at tech leader Microsoft.

Yusuf at the time of raise stated, “We are excited to build the future of regulated financial infrastructure and digital assets out of the UAE. Regulations have played a pivotal role in propelling the UAE into a central position within the global Digital Assets industry. To receive the backing of Abu Dhabi-headquartered Further Ventures combined with the deep expertise of US-based Liberty City Ventures, confirms the relevancy and potential of Fuze’s mission to rapidly expand our cutting-edge infrastructure across the region.”

Article updated on November 20th 2023

Dubai virtual assets regulator appoints new CEO amid intensified regulatory efforts

Dubai virtual assets regulator appoints new CEO amid intensified regulatory efforts

Dubai’s Virtual Assets Regulatory Authority (VARA) in a press release has announced that Mathew White will be the new CEO of VARA which comes as VARA intensifies its efforts towards regulating the VASPs in Dubai calling on them to finalize their applications today.

As per the press release, Matthew White has 20 years of experience in technology, cyber security and digital trust while working as a partner at PricewaterhouseCoopers. Former CEO Henson Orser who is leaving to pursue other opportunities will remain fully engaged to support the new CEO as he integrates into his new role.

In a Bloomberg article it noted that VARA is poised to levy fines on over a dozen crypto firms, as the head of Dubai’s crypto regulator is poised to depart after less than a year on the job.

The news comes as VARA calls on more than 1000 legacy firms to complete their applications to register under Dubai’s unique regulatory framework by November 17th 2023, as part of Dubai’s commitment to fostering a transparent and resilient virtual asset environment.

VARA is calling on VASPs that have yet to submit the applications, have missed the notifications from their commercial licensing authorities, or have submitted incomplete forms to proactively get in touch, to avoid unintended regulatory consequences.

It seems with new VARA CEO efforts will be focused on ensuring compliance to regulatory and FATF requirements by VASPs.

Taurus opens UAE based Middle East office as more financial and non-financial entities sign up for digital asset and custodial services

Taurus opens UAE based Middle East office as more financial and non-financial entities sign up for digital asset and custodial services

Taurus SA, a FINMA-regulated Swiss institutional-grade digital asset infrastructure provider, has expanded its operations into the Middle East to serve its growing client base in the region. Taurus will service the GCC and MENA region, including KSA, Qatar and even Turkey through its Dubai UAE office.

Founded in 2018Taurus SA, a Swiss company provides enterprise-grade digital asset infrastructure to issue, custody and trade any digital assets: cryptocurrencies, tokenized assets, NFTs and digital currencies.

Managing Director, Bashir Kazour, leads Taurus’ new UAE office based in the DIFC in Dubai. M. Kazour brings more than 20 years of retail, capital markets and technology experience gained at Royal Bank of Canada, Standard Chartered and FIS, a leading banking and payment technology provider. Over the last decade, he collaborated closely with a diverse client base ranging from sovereign wealth funds and central banks to brokers and family offices.

“I am excited to lead Taurus’ efforts and build a winning franchise in the Middle East, a region known for its rapid adoption of blockchain technology and digital assets,” said Kazour. “Taurus is well-known for its unique custody and tokenization capabilities serving banking clients and large enterprises, which aligns perfectly with the needs of the region. We’ve already started interacting closely with regulators, central banks and clients and I’m looking forward to delivering cutting-edge and compliant solutions to the market.”

Speaking to LaraontheBlock on whether Taurus requires regulation by VARA, Bashir Kazour, Managing Director at Taurus SA explained, “Taurus does not need a regularity license in the UAE as we solely focus on providing the digital asset infrastructure to our clients in the region. To make it simple, Taurus is a technology provider, equipping banks and corporates, with a platform to manage any digital asset. The financial services activity is regulated by the Swiss FINMA and is not promoted outside of Switzerland.”

Taurus opened an office in DIFC Dubai because the company has already signed up some large financial institutions according to Kazour. He adds, “We are also in late stage discussions with several other financial and non-financial institutions in the Middle East region. The region is known for its rapid adoption of blockchain technology and digital assets driven by the regulatory clarity already provided through VARA, ADGM, RAK DAO initiatives, fostering innovation.”

As such Kazour reaffirms that the opening of the office in the UAE is to support this growing demand in the region for both custodial and tokenization solutions.

The office according to Kazour will serve the full Middle East region, including Qatar, KSA but also Turkey. He adds, “ We also have plans to expand to other countries as well.”

Taurus has already consolidated its European leadership position as the preferred digital asset infrastructure provider for banks and corporates, building on its Swiss market leadership with more than 60% market share. Among others, Taurus has recently announced a partnership with Deutsche Bank as well as CACEIS, one of the largest global custodians. Taurus also closed its $65 million Series B funding round last February with strategic investors including Arab Bank Switzerland, Credit Suisse, and Pictet.