Summary:
- Binance has received in-principle approval to operate in Abu Dhabi as a broker-dealer in digital assets
- However, Binance needs to complete the application process
- A full license means Binance will provide virtual asset services to customers across the Middle East and Northern Africa (MENA)
- UAE has proven to attract many crypto exchanges and projects such as FTX and Binance
The world’s largest crypto exchange in daily trade volume, Binance, has received in-principle approval to operate in Abu Dhabi as a broker-dealer in virtual assets, including cryptocurrencies. However, Binance still needs to complete the application process to start operations that will allow it to offer virtual asset services in the Middle East and North Africa regions (MENA).
Binance received the in-principle approval from Abu Dhabi Global Market, with the regulatory body stating that the entry of the crypto exchange ‘will add new vibrancy to Abu Dhabi’s growing virtual assets and blockchain ecosystem’.
@binance, one of the world's leading #blockchain and #cryptocurrency platforms, received an IPA from the #ADGM Financial Services Regulator Authority. pic.twitter.com/jhHenzaahE
— Abu Dhabi Global Market (@ADGlobalMarket) April 10, 2022
The Abu Dhabi Global Market (ADGM) is an award-winning international financial center strategically located in the capital of the UAE. It comprises three independent regulatory bodies: the Registration Authority (RA), the Financial Services Regulatory Authority (FSRA), and ADGM Courts. The mandate of the ADGM is to ensure a business-friendly environment in the region in line with international best practices recognized by major financial centers worldwide.
Binance Continues to Engage Global Regulators
According to Binance’s head for the MENA region and former ADGM executive, Richard Teng, the crypto exchange ‘has been actively engaging global regulators, such as ADGM, as part of its ongoing commitment to uphold global standards and collectively foster the developments and sustainable growth of the crypto ecosystem’.
UAE Continues to Attract Crypto Exchanges
The United Arab Emirates (UAE) has lately become the preferred jurisdiction for crypto exchanges and holders. Earlier this month, FTX received a virtual asset service provider (VASP) license in Dubai. The crypto exchanges of Bybit and Crypto.com are also considering expanding their presence in the region.
The CEO of Binance, Changpeng Zhao, has also chosen Dubai as his preferred base of operation for the foreseeable future.