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Binance FZE (UAE) launching early December

M

myself

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Sep 8, 2021
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#1
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Binance FZE was created to serve UAE residents. It's planning to launch in the beginning of December. Binance started asking UAE residents to upload additional personal information (EID,...) preparing for the migration to Binance FZE. Once a user migrates to the new exchange, he/she automatically loses access to Binance Global. There's still a possibility to remain with Binance Global for those who want to re-do the identification with a different country of residence, but they will need to prove their address in that country.
The new Binance FZE will list 300 assets. But I guess there will be very low liquidity at least for some time, compared to Binance Global, and this is a problem especially during a bull market. Not sure how things will work out for UAE residents. OKX also seems to be in the middle of doing something similar now that they got a license to operate in the UAE.
The question is what could be a good exchange to use for one who loses access to Binance Global?

FAQ for Binance FZE: https://www.binance.com/en-AE/suppo...inance-dubai-55e8a2e0f7f14f958ba4b4846b1effab
 
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#2
myself said:
But I guess there will be very low liquidity at least for some time, compared to Binance Global, and this is a problem especially during a bull market.
Click to expand...

Wouldn't Binance FZE be able to pool liquidity with Binance Global or does this have to be segregated?
 
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#3
Martin Everson said:
Wouldn't Binance FZE be able to pool liquidity with Binance Global or does this have to be segregated?
Click to expand...

What does Binance US do? The size of their order book compared to that of Binance Global suggests that it's completely separated. I guess it would be the same for FZE. Note also that the set of supported assets on Binance FZE will be different from Global. I suspect they will also list pairs in AED.

From a legal prospective, I don't have the background to tell, but I'm wondering whether the license for Binance FZE would allow it to pull liquidity from Binance Global.
 
#4
So you don't know basically. I wonder if anyone else knows in that case.
 
#6
ok so we have bitoasis, m2, okx (just recently) and soon binance, great but banks are still the bottle neck. Any indication as to when the banks attitude toward crypto might finally change?

I'm with private banking level with one of UAE major banks and even my personal banker says he wouldn't use his bank for crypto.
 
#7
PinkCat said:
ok so we have bitoasis, m2, okx (just recently) and soon binance, great but banks are still the bottle neck. Any indication as to when the banks attitude toward crypto might finally change?

I'm with private banking level with one of UAE major banks and even my personal banker says he wouldn't use his bank for crypto.
Click to expand...
I've just posted a thread that WIO Bank started offering crypto service. They don't allow crypto deposit/withdrawal but a crypto service offered by a local bank gives some hope about crypto banking. Somebody replied that "Another local option is crypto.com, they enabled local USD deposits over Standard Chartered recently."

M

Post in thread 'WIO Bank UAE adds virtual asset'

You can't deposit or withdraw crypto and the total fees are roughly 1.5%.

Another local option is crypto.com, they enabled local USD deposits over Standard Chartered recently.
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#8
PinkCat said:
ok so we have bitoasis, m2, okx (just recently) and soon binance, great but banks are still the bottle neck. Any indication as to when the banks attitude toward crypto might finally change?

I'm with private banking level with one of UAE major banks and even my personal banker says he wouldn't use his bank for crypto.
Click to expand...
By the way, CBD are ok with withdrawals from crypto exchanges. I asked them in the past and they said it's fine. I haven't had problems withdrawing 5 figures USD from kraken.
 
#10
myself said:
Somebody on reddit said that binance support confirmed to him that the liquidity on binance FZE will be limited to the UAE market. Not the best news!
Click to expand...
Quite annoying if the low liquidity is confirmed and they can't pool liquidity with their global entity. Though, a branch complying with local regulation might still be a good thing I believe
 
#13
myself said:
Binance FZE was created to serve UAE residents. It's planning to launch in the beginning of December. Binance started asking UAE residents to upload additional personal information (EID,...) preparing for the migration to Binance FZE. Once a user migrates to the new exchange, he/she automatically loses access to Binance Global. There's still a possibility to remain with Binance Global for those who want to re-do the identification with a different country of residence, but they will need to prove their address in that country.
The new Binance FZE will list 300 assets. But I guess there will be very low liquidity at least for some time, compared to Binance Global, and this is a problem especially during a bull market. Not sure how things will work out for UAE residents. OKX also seems to be in the middle of doing something similar now that they got a license to operate in the UAE.
The question is what could be a good exchange to use for one who loses access to Binance Global?

FAQ for Binance FZE: https://www.binance.com/en-AE/suppo...inance-dubai-55e8a2e0f7f14f958ba4b4846b1effab
Click to expand...
Another option not mentioned here above is Gate.io; but here as well the number of tokens is very limited: https://www.gate.ae/uae/available_virtual_assets.html

So, compared to less advanced countries, what are UAE residents supposed to do if they want to have access to smaller and legit tokens, and liquidity?
Do these exchanges actually propose margin/futures trading?

Quite relevant if it's better/advised to residents to invest/trade with regulated exchanges
 
#14
myself said:
I don't think so. I noticed that they postponed the deadline for the UAE user migration to January 31. They will probably launch on that date. I managed to stay with Binance Global as I have a residency in another country so I won't be impacted by the UAE migration anyways.
Click to expand...
I also have 2 residences, do you think we will be able to open SEPARATE account with Binance UAE?

I tried that with okx uae, but it somehow knew I have account with my other residency and offered me to migrate the original account to UAE one, didnt allow me a separate one :(
 
#15
PinkCat said:
I also have 2 residences, do you think we will be able to open SEPARATE account with Binance UAE?

I tried that with okx uae, but it somehow knew I have account with my other residency and offered me to migrate the original account to UAE one, didnt allow me a separate one :(
Click to expand...
To be honest the situation is quite particular. So many trading KOLs are based in Dubai, trade smaller coins or with leverage, which doesn't seem proposed by locally regulated exchanges. Would be interesting to know their setup/or how pro traders do in general.

Also wondering if using an offshore entity wouldn't be a solution, with CIT payment in UAE in a way or another if needed.
 
#16
PinkCat said:
I also have 2 residences, do you think we will be able to open SEPARATE account with Binance UAE?

I tried that with okx uae, but it somehow knew I have account with my other residency and offered me to migrate the original account to UAE one, didnt allow me a separate one :(
Click to expand...
Users with more than 1 residency have the option to remain with Binance Global if they want to. A proof of address in the other country is still required. I did that and it worked for me. See question #18 in the FAQ: https://www.binance.com/en-AE/suppo...inance-dubai-55e8a2e0f7f14f958ba4b4846b1effab
 
#17
Thomas67 said:
To be honest the situation is quite particular. So many trading KOLs are based in Dubai, trade smaller coins or with leverage, which doesn't seem proposed by locally regulated exchanges. Would be interesting to know their setup/or how pro traders do in general.

Also wondering if using an offshore entity wouldn't be a solution, with CIT payment in UAE in a way or another if needed.
Click to expand...
Exchanges like Bybit, GateIO, Kucoin and MEXC are still accessible in the UAE and are not yet under the VARA regulations. Some of them have a fairly large listing and good liquidity especially in bull market times. Most of small coins are also available on DEX's I believe.
 
#18
myself said:
Exchanges like Bybit, GateIO, Kucoin and MEXC are still accessible in the UAE and are not yet under the VARA regulations. Some of them have a fairly large listing and good liquidity especially in bull market times. Most of small coins are also available on DEX's I believe.
Click to expand...
Well Bybit and Gate have a VARA regulated license already. Aside DEXs, something also tells me it's preferable to do business with regulated entities in UAE, unless an offshore business/trading company is used obviously
 
#19
Thomas67 said:
Well Bybit and Gate have a VARA regulated license already. Aside DEXs, something also tells me it's preferable to do business with regulated entities in UAE, unless an offshore business/trading company is used obviously
Click to expand...
Really? I didn't know about Bybit and GateIO :) I don't remember receiving communications about that from them.

Re: using regulated entities, the travel rule probably supports your thought: https://blog.bitoasis.net/bitoasis-travel-rule-compliance-announcement/

My only problem with the UAE entities is liquidity. I'm assuming that the UAE versions of all these exchanges will have separate order books for UAE users, in which case the liquidity will be very low compared to global exchanges.
 
#20
myself said:
Users with more than 1 residency have the option to remain with Binance Global if they want to. A proof of address in the other country is still required. I did that and it worked for me. See question #18 in the FAQ: https://www.binance.com/en-AE/suppo...inance-dubai-55e8a2e0f7f14f958ba4b4846b1effab
Click to expand...
Of course we do, I don't think they have a way to know about our 2nd residency, so its up to us to disclose that or not.

Ideally I want both though. Binance global for the liquidity, Binance UAE for the UAE specific off/on ramps.
not that binance global p2p isn't good enough for me right now, but always good to have more options.
 
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