ADGM intends to issue similar regulatory approvals to other global and local companies
Abu Dhabi Global Market has announced that Binance, the world’s largest cryptocurrency exchange, has been granted the principles to operate in the UAE. The approval marks an important milestone in Binance’s goal of operating as a fully licensed company.
The approval allows Binance to operate in Abu Dhabi as a broker-dealer for various digital assets, including cryptocurrencies. This is Binance’s third regulatory approval in the Middle East after Bahrain and Dubai.
ADGM is the UAE’s International Financial Free Zone. Historically, it has been a frontrunner in providing regulation and oversight of financial services in its region. Commenting on Binance’s efforts to build a new dimension of digital asset trading on a global scale, ADGM said:
“The IPA is part of Binance’s plan to establish itself as a fully regulated virtual asset service provider in an internationally recognized and well-regulated financial center.”
ADGM CEO Dhaher bin Dhaher welcomed Binance to Abu Dhabi, the largest city in the UAE, and pledged to help the exchange build its presence in the UAE.
To enhance Abu Dhabi’s status as a hub for virtual assets and the digital economy, ADGM also plans to provide similar regulatory approvals to other noteworthy local and global companies. The intent to support cryptocurrencies comes from the rapid growth and growing importance of the industry.
Previously, the well-known cryptocurrency exchange FTX obtained an operating license in Dubai.
In March, ADGM published a consultation paper suggesting that ADGM-licensed firms should be allowed to conduct NFT transactions within the jurisdiction.
In response, the region’s leading regulator, the Financial Services Regulatory Authority (FSRA), said that NFTs negotiating transactions with ADGM would be considered intellectual property, not financial instruments. Additionally, facilitating such NFT transactions will require companies to comply with strict anti-money laundering (AML) and sanctions rules.