Our Virtual Asset Services are only available in connection with those virtual assets that Binance FZE (“Binance”) supports, which may change from time to time. Under no circumstances should you attempt to use your Account to store, send, request, or receive virtual assets in any form that we do not support.
Binance takes all reasonable steps including, but not limited to, conducting relevant due diligence to ensure all virtual assets listed by Binance meet its Virtual Asset Standards prior to, and at all times during, the provision of any virtual asset activities for which it is holds an MVP Operational Licence from the Dubai Virtual Assets Regulatory Authority (“VARA”).
The factors outlined here are not exhaustive and only describe some of the considerations which we take into account when conducting due diligence in respect of prospective virtual assets for listing:
1. its market capitalisation, fully diluted value and liquidity, and whether such metrics have trended downwards over time;
2. its design, features and utility, value proposition, current transferability, whether or not intended by the issuer or relevant developers;
3. whether there are features which may materially affect Binance’s compliance with applicable UAE laws, Regulations, Rules or Directives, including but not limited to those relating to AML/CFT, sanctions, securities and intellectual property;
4. regulatory treatment by VARA and other appropriate authorities (including those outside of the Emirate of Dubai), in particular whether the issuance of the virtual asset has received any regulatory approvals connected to the issuer, project or virtual asset, including whether the virtual asset may constitute a regulated financial product under the laws of other jurisdictions;
5. whether a virtual asset is prohibited by VARA or any other appropriate authorities (both inside or outside the UAE) in jurisdictions in which Binance, or other entities within the Binance Group, will provide virtual asset activities, or equivalent activities, in relation to such virtual asset;
6. the security and immutability of the underlying DLT protocol;
7. the product development team, its current and future development (e.g. product development roadmap) as communicated by the issuer and/or relevant developers;
8. products associated with the project or those with which the virtual asset can be used or operate (e.g. platforms);
9. whether it may be susceptible to price manipulation for any reason and relevant mitigations that will be implemented by Binance;
10. whether potential or actual conflicts of interest may arise should Binance provide any virtual asset activities in relation to the virtual asset and relevant mitigations;
11. beneficial owners in respect of the project, the background of its issuer including, but not limited to, relevant experience in the virtual asset sector and whether it has been subject to any investigations or claims in relation to fraud or deceit;
12. if the virtual asset represents rights to any other assets, the enforceability of such rights;
13. whether sufficient assets are available to satisfy any obligation with respect to any virtual asset activities;
14. where terms and conditions exist, a review of these terms and whether they reflect, to the extent possible, the operation of any existing underlying physical market and avoid adverse impacts to such market (if applicable); and if such terms conform to the standards and practices in that physical market; and
15. previously completed, ongoing, and/or future planned sales or offerings of the virtual asset.
Binance regularly, and on an ongoing basis, gathers and reviews relevant information in line with its virtual asset listing and virtual asset standards policy to ensure that a virtual asset it provides Virtual Asset Services in relation to continues to meet its Virtual Asset Standards.
Binance will assess all virtual assets against the aforementioned Virtual Asset Standards before deciding, at its discretion, whether to:
1) approve the virtual asset listing;
2) request more information, if in its discretion more information is required for its assessment; or
3) reject the proposed virtual asset listing, if the risks of the virtual asset are deemed too high.
Discrepancies in the regulatory treatment of virtual assets
Binance is cognisant of the fact that certain virtual assets are currently under investigation in other jurisdictions. Binance will disclose on its website whether a particular virtual asset is prohibited in a particular jurisdiction, with a reference to the relevant governmental or regulatory authority in question.
Should this result in Binance taking a decision to delist and no longer support a virtual asset on its Platform, Binance will follow the process in its listing policy to delist such virtual asset, which includes notifying both the customer and VARA.
Should there be a conflicting view as to the treatment or risk posed by a particular virtual asset, which results in Binance continuing to list the virtual asset on its Platform, Binance will appropriately disclose all the risks associated with the virtual asset in question on its Website, including the differences in regulatory treatment from the governmental or regulatory authority in question.
