Binance expands Middle East reach as it receives approval to operate in Abu Dhabi
Binance, one of the world's largest cryptocurrency exchanges, has announced that it has, in principle, received approval to operate in Abu Dhabi, making it its third regulatory approval in the Middle East after Bahrain and Dubai.
The initial approval from the Abu Dhabi Global Market (ADGM) allows Binance to act as a broker-dealer in digital assets including cryptocurrencies, marking another milestone for the crypto exchange, which is applying to act as a fully licensed company.
ADGM operates as an international financial free zone within the capital of the United Arab Emirates, which has historically played an important role in the regulatory and supervisory oversight of financial services provided within its jurisdiction.
What you should know
ADGM also shared its intent to provide similar regulatory approvals to local and global crypto firms to cement Abu Dhabi's position as the "hub of fast-growing virtual assets and the digital economy."
Dhaher Bin Dhaher, CEO of Abu Dhabi Global Market, welcomed the move by promising to support Binance's efforts to establish its presence in Abu Dhabi.
On March 22, ADGM published an advisory paper, which suggested allowing ADGM-licensed firms to facilitate NFT trading in the jurisdiction.
However, allowing NFT trading will likely require authorized firms to comply with anti-money laundering (AML) rules and penalties issued by ADGM.
Although the Binance platform is increasing its penetration in the Middle East, its rival FTX, a cryptocurrency exchanged by billionaire Sam Bankman-Fried, is also increasing its penetration in the region. FTX previously obtained operating licenses in Dubai, the second largest city in the UAE after Abu Dhabi.
Binance, one of the world's largest cryptocurrency exchanges, has announced that it has, in principle, received approval to operate in Abu Dhabi, making it its third regulatory approval in the Middle East after Bahrain and Dubai. .
The approval of the Abu Dhabi Global Market (ADGM) in principle allows Binance to act as a broker-dealer in digital assets, including cryptocurrencies, marking a new milestone for the cryptocurrency exchange, which is striving to operate as a fully licensed company.
Abu Dhabi Global Market operates as an international financial free zone in the capital of the United Arab Emirates, which has historically played an important role in the regulatory and supervisory oversight of financial services provided in its jurisdiction.
What you should know
Referring to Binance’s efforts to obtain regulatory licenses worldwide, the ADGM said, “The IPA is part of Binance’s plans to establish itself as a fully regulated virtual asset service provider in the center of a well-regulated and internationally recognized financial institution.”
ADGM also indicated its intent to provide similar regulatory approvals to local and global crypto firms to cement Abu Dhabi's position as a "fast-growing hub for virtual assets and the digital economy."
Zahir Bin Dhaher, CEO of Abu Dhabi Global Market, also welcomed the move, promising to help Binance in its efforts to establish its presence in Abu Dhabi.
On March 22, ADGM released an advisory paper proposing that ADGM-licensed companies be allowed to facilitate NFT transactions in the jurisdiction.
The Free Zone's lead regulator, the Financial Services Regulatory Authority (FSRA), described NFTs in an ADGM advisory paper as intellectual property and not "specific investments or financial instruments". However, licensing NFT transactions is likely to require authorized firms to comply with Anti-Money Laundering (AML) rules and ADGM sanctions.
Although the Binance platform is increasing its penetration in the Middle East, its rival FTX, a crypto exchange run by billionaire Sam Bankman-Fried, is also increasing its penetration in the region. FTX previously obtained operating licenses in Dubai, the second largest city in the United Arab Emirates after Abu Dhabi.
Binance provides a platform for users to trade various cryptocurrencies, including Bitcoin, Ethereum, Ripple, and many others.
The exchange offers a wide range of trading features and services, catering to both beginners and experienced traders. Binance supports spot trading, futures trading, margin trading, and other advanced trading options. Users can access the platform through the website or mobile applications available for iOS and Android devices.
In addition to trading, Binance also provides other services, such as staking, lending, and earning interest on cryptocurrencies. The exchange has its native cryptocurrency called Binance Coin (BNB), which can be used for discounted trading fees and participating in token sales on the Binance Launchpad.
Binance has expanded its services over time and now offers various products, including Binance.US for customers in the United States, Binance Launchpad for token launches, Binance Academy for educational resources, and Binance Charity for philanthropic initiatives.
It's important to note that while Binance is a popular and reputable cryptocurrency exchange, investing in cryptocurrencies involves risks, and it's always advisable to conduct thorough research and exercise caution when trading.
