Binance crypto exchange announced to its UAE users, that after receiving its VASP license from Dubai’s virtual asset regulatory authority for their local crypto exchange in Dubai, users in UAE need to transition their accounts to Binance FZE in UAE.

Part of the onboarding requirements is that all UAE resident users will need to update their KYC information by 15th December 2024.  

As per the blog post affected users will receive continuous updates and communications regarding the process at different stages from now until all UAE resident accounts have been successfully transitioned. The transition process will not affect users’ current account access and they can continue to use products and services already available on Binance’s Global Exchange until 2024-12-15. After this date, the user’s account will transition to Binance FZE, but the login credentials (email & password) and UID number will remain the same. Users are reminded to update their KYC information at the earliest to avoid the restriction of their account to withdrawal only

All UAE resident users who update their KYC information before 2024-10-30 will be automatically entered into a Prize Draw to share $500,000 in BTC rewards, with the ultimate prize being 1 BTC! Winners will be selected through the BNB Smart Chain hash value on 2025-01-01 23:59 (UTC) and announced via email. 

Binance UAE users will be able to access t bank deposits and withdrawals in local fiat currency (AED) and more than 300+ virtual assets, UAE resident users can rest assured knowing that all products already available on the Binance Global Exchange will also be available on Binance FZE.

UAE regulated crypto broker platform BitOasis will be using Sumsub, a full cycle verification platform providing customizable KYC, KYB, transaction monitoring, and AML solutions.

BitOasis has chosen Sumsub for crypto identity verification and AML screening for crypto compliance. Having recently reopened its platform to new retail and institutional users, this partnership with Sumsub will enable BitOasis to further enhance its user onboarding process while ensuring full compliance with strict AML and other regulatory requirements.

“We are excited to start working with Sumsub, a global leader in verification, anti-fraud and compliance. Sumsub will enable us to further strengthen the stringent controls we use to protect our users and ecosystem from illicit activities and support us in ensuring continued full compliance with evolving AML regulations. By implementing Sumsub’s KYC and AML Screening solutions, we make sure to provide the best user experience to our customers in the Middle East and beyond,” says Stanford Cardoz, AML Director at BitOasis.

“We are thrilled about our collaboration with BitOasis, a leading crypto platform in the Middle East,” comments Peter Sever, co-founder and Chief Strategy Officer of Sumsub“We are proud to join BitOasis’ mission of building infrastructure for a new digital financial system based on cryptocurrencies, a system that is transparent, inclusive, compliant and secure.”

BitOasis recently received its active MVP Operational license from Dubai’s virtual asset regulatory authority, one step towards receiving a full license.

BitOasis noted that it holds and sells 60+ cryptocurrencies adding that since its launch, it has processed more than $6 billion in trading volume and raised more than $40 million dollars in funding from leading regional and global investors, such as CoinDCX, Wamda Capital, Jump Capital, Pantera Capital, and Global Founders Capital.

IMF discussed its new draft methodology for the supervision of virtual assets during a recent fintech roundtable organized by the International Monetary Fund (IMF) staff, in collaboration with the UAE Executive Office of Anti-Money Laundering and Counter Terrorism Financing. Interestingly the methodology project was financed by a number of countries including Qatar and Saudi Arabia.

In attendance were participants from 15 countries including Bahrain and Saudi Arabia.

Hamid Al Zaabi, Director-General of the EO AMLCTF, stated, “The UAE continues to raise the effectiveness of its regulatory framework for VAs and VASPs to attract innovative firms and keep out illicit actors seeking to exploit the global financial system. We are delighted to partner with the IMF team to give supervisory authorities across the world the opportunity to strengthen international cooperation and be part of the design process of an important new methodology for VA/VASP supervision”.

Chady El Khoury, Deputy-Division Chief of the Financial Integrity Group within the Legal Department at the IMF, noted the broad consensus among participants on the need for urgent actions to mitigate the potentially significant ML/TF risks emerging from VA and VASPs.

He explained, “It is critically important that countries carry out robust AML/CFT risk-based supervision of VASPs, and that assessing the associated ML/TF risks is the starting point of an effective AML/CFT supervisory regime.”

Participants at the workshop identified a range of issues, including a lack of capacity and resources for supervisory agencies and data collection/analysis gaps. They agreed on the need for strong collaboration among AML/CFT supervisory agencies and upgrading existing ML/TF supervisory risk assessment models to accurately assess VA and VASPs.

In the absence of a clear solution to deal with data collection and related gaps, supervisors may need to rely on models that are more tuned into the inherent risks that VASPs pose with the decision on whether to incorporate data (e.g., transaction level analysis on VA flows) on a case-by-case basis. Finally, a more connected and active community for collaboration between AML/CFT VA and VASP supervisors would help countries to better understand and address cross-border ML/TF risks.

Over the coming months, IMF staff will follow up with participants and incorporate feedback on the methodology. Once finalised, the methodology will form part of the Legal Department of the IMF’s CD toolkit that the organisation will start providing to countries by mid-year 2025.

The methodology was developed under a project that is financed by a donor-supported Canada, France, Germany, Japan, Korea, Luxembourg, the Netherlands, Qatar, Saudi Arabia and Switzerland trust fund to finance CD in AML/CFT at the IMF with excellent support from the UAE to host the event.

The Russian news state agency reported that the Central Bank of Russia is ready to cooperate with UAE regulators to build a system for fast payments and settlements using digital ruble CBDC. The CBDC will be used by both individuals as well as businesses once the issue of KYC is resolved.

The comments were made by First Deputy Governor Olga Skorobogatova said at the Finopolis forum.

Skorobogatova stated, “We will work out the fast payment system and the CBDC [central banks digital currency – TASS] because the colleagues are ready with the digital ruble and we are ready. If we solve the issue of client identification, then I think we will be able to build up a normal system of payments for citizens and the business between the two our countries in a year at the least,” she said.

Moveover, the Bank of Russia continues testing the digital ruble in a limited pilot program that started in August with 13 private banks. At Finopolis, head of the Bank of Russia, Elvira Nabiullina said the pilot is on track and will expand next year to more users. 

As for the UAE, it is also piloting its CBDC project working with Blockchain tech players such as R3.

During the recent MENA FATF (Financial Action Task Force) regional body’s workshop attendees adopted several recommendation proposes by Abu Dhabi including those pertaining to virtual assets, in the fight against money laundering, and terrorism.

The Abu Dhabi recommendations consist of 24 best practice commitments made by MENAFATF member states for enhancing regional efforts to counter money laundering and financing of terrorism.

The recommendations were agreed at the closing of the MENAFATF Typologies and Capacity Building Workshop held between 6-8 March 2023 under the patronage of H.H. Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs, and Chairman of the Higher Committee Overseeing the National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism, and hosted by the UAE Executive Office of Anti-Money Laundering and Counter Terrorism Financing (EO AML/CTF) in Abu Dhabi.

Of the 24 recommendation five pertained to virtual assets. The first discussed enhancing MENAFATF countries’ understanding of the requirements of Recommendation 15, including the sectorial risk assessment of virtual assets, given the rapid development in this field.

The second recommendation  urged countries to build capacities in the field of virtual assets with the competent authorities, especially in the field of supervision, control, investigations and management of seized and confiscated assets and the extent of their use in evading sanctions.

While the third recommendation proposed continuing to adopt new technologies to mitigate the risks of virtual assets in partnership with the private sector.

As for the fourth and fifth recommendations, one proposed enhancing national cooperation in following up on issues related to virtual assets between the competent authorities and urged the use of best practices such as specialized task forces (working groups), while the other proposed raising awareness among member countries about the risks of cybercrime, particularly ransom ware and related payment methods, especially concerning VAs.

Suliman Al Jabrin, Executive Secretary of MENAFATF, stated that regional alignment on best practices has created of a set of shared standards that strengthens the national AML/CFT systems of member states. He added, “I am delighted that the 24 recommendations made by MENAFATF members in Abu Dhabi cover a comprehensive range of the most pressing issues facing us today. It is right that the list includes Virtual Assets (VA), ML typologies, Public-Private Partnerships, regional assessments, and multiple means of expanding cooperation. The MENA region plays an important role in the global economy, and the Abu Dhabi recommendations send a strong signal to our international partners that there is no place for financial crime in our part of the world.”

UAE based VAF Compliance, a virtual assets and fintech compliance firm has launched a telegram bot service that assesses the risks associated with accepting cryptocurrency as payment.

VAF Compliance’s Telegram Bot can help individual clients and small businesses avoid situations where they may unknowingly accept tainted funds. With this service, VAF Compliance aims to democratize access to AML solutions to all users, who now can assess risks before accepting crypto, receive a clear and user-friendly report, understand the risks associated with interacting with other wallets, and prevent the receipt of crypto with criminal origins.Crypto exchanges, the entry point to cryptocurrencies, are particularly vulnerable to compliance issues. To maintain compliance, the implementation of robust Know Your Customer (KYC) and Anti-Money Laundering (AML) policies is essential.

While recent sanctions against entities providing money laundering services to criminals have had a positive impact, alternative money laundering services may still be found, highlighting the need for robust KYC and AML policies in the crypto industry.

The bot is now available in English and Chinese (Mandarin) and will cover over 45 blockchains. It also provides an easy-to-read report to understand the risk level prior to accepting any funds in the user’s wallet. 

 In addition, users have the option to pay fees per report or package, and if they refer the service to others, they can receive free reports that cover more than 70 different risk parameters.

“We are very excited to launch our newest solution, the VAF Compliance Bot service, which provides an easy-to-use, yet comprehensive solution for individuals and small businesses looking to navigate the complex world of crypto compliance,” said Gilson Ribeiro Da Costa, CEO of VAF Compliance.

“We believe our innovative solutions will help our clients achieve their compliance goals, while also enhancing the overall reputation and credibility of the crypto industry.”

Not only does the company offer support to clients in the MENA region, but it also extends its services in countries such as Turkey, Africa, and Europe. In fact, the company has announced its expansion to Switzerland and the establishment of its office in Zug. The team will be led by Farzaad Gaibie, a seasoned financial services consultant with extensive industry knowledge and experience.

The expansion to Zug will enable VAF Compliance to better understand the needs of its clients and offer tailored solutions that meet their unique requirements.

Governor of Central Bank of Kuwait Basel Al Haroon in an interview with John Everington from the Banker, discussed the implementation of Blockchain EKYC solution as well as the ongoing research for CBDCs.

According to the governor of Kuwait’s Central Bank, the bank is closely following the experiences of other countries that are issuing CBDCs, as well as the debates taking place among stakeholders in various countries regarding the various pros and cons.  He tells the Banker that they have formed a team of experts from various fields within the CBK to study the topic. According to Al Haroon, any such issuance would need to be accomplished in a way that preserves monetary and financial stability, while maintaining confidence in Kuwait’s payment system.

In addition when it comes to blockchain, two local Kuwait banks have obtained the Central Bank’s approval to launch their blockchain based KYC verification and API interfaces.

In June 2021, Akcess which utilizes Hyperledger Fabric to provide KYC Blockchain enabled solution to customers in Egypt, Kuwait, Qatar and UAE opened its offices in Kuwait as it currently had projects underway in Kuwait, Egypt, UAE and Qatar.

In the announcement CEO Abouzeid stated, “With a team of over 30 developers spread across London, Romania, and Moldova, Our global blockchain platform is AKcessChain, built on Hyperledger Fabric, and we launched the private blockchain network globally and in Kuwait,” Abouzeid says. “We currently have nodes in the UK, Switzerland, and Canada, and have configured nodes in Kuwait, one for each of our large clients. The Kuwait network is being used by top financial institutions for onboarding clients, verifying and updating KYC profiles, as well as managing transactions. We are now in advanced talks with financial institutions in the UAE and Saudi Arabia, and are also preparing for our expansion into the GCC market.”