Crypto exchange Binance has today been handed an ‘agreement in principal’ to operate in Abu Dhabi.
The United Arab Emirates’ Financial Services Regulatory Authority this morning granted its ‘In-Principle Approval’ (IPA) for a Financial Services Permission to operate as a broker-dealer in virtual assets.
Applying for the FSP from the FSRA is part of Binance’s plan to establish itself as a fully-regulated virtual asset service provider. ADGM, the International Financial Centre in the capital of the United Arab Emirates (UAE), introduced the world’s ﬁrst comprehensive and robust virtual asset regulatory framework in 2018 and has since established itself as a global hub and business platform for virtual asset activities.
“We are pleased that Binance has been awarded an In-Principle Approval in the ADGM and are excited to support them as they work towards establishing their foothold and presence in Abu Dhabi, the capital of the UAE,” said Dhaher bin Dhaher, CEO of the Registration Authority of Abu Dhabi Global Market.
“ADGM’s virtual asset framework is well recognised globally for its inclusive regulations and robust provisions and it is part of ADGM’s ongoing commitment, as an International Financial Centre, to bolster the economic growth of Abu Dhabi and to uphold the transparency and integrity of the marketplace.
“ADGM will continue to actively expand the business offerings and unlock new investments opportunities in the UAE, and enable virtual asset partners like Binance to support the growing financial needs of the investors and businesses across the region.”
Richard Teng, Head of MENA for Binance, said Binance had 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.
“ADGM is the pioneer in introducing robust virtual asset regulatory frameworks to support the growth of the global blockchain ecosystem,” he said.
“We are grateful for their support during our application process and look forward to working closely with ADGM and other key Abu Dhabi stakeholders for broader deployment of our world-class offerings and services across the whole MENA region and beyond.”
Upon the successful completion of its ADGM FSRA application, Binance will then be able to offer its services regarding virtual asset offerings to customers across the Middle East and North Africa (MENA) region, through its subsidiary Binance (AD) Limited.