- The Abu Dhabi Financial Services Regulatory Authority has offered Binance approval in principle of the Financial Services Permit to operate as a digital asset broker.
- This is the third regulatory approval the exchange has received in the Middle East.
Once again, the United Arab Emirates demonstrates its intention to become a world center of cryptocurrencies after granting Binance provisional green light to operate in Abu Dhabi.
Specifically, according to Abu Dhabi Global Market (ADGM) The Financial Services Regulatory Authority (FSRA) of Abu Dhabi has offered Binance Financial Services Permit (FSA) approval in principle to operate as a digital asset broker.
The fact that it is an approval in principle means that it is provisional. Even so, it marks an important milestone for the crypto exchange by being the third regulatory approval it has received in the Middle East.
Binance on its way to being a fully licensed company
The lack of a defined, clear and global regulation for cryptocurrencies directly affects companies that offer services based on them. Namely, crypto exchanges like Binance have had to adapt to the regulations and criteria of different countries to be able to operate in them. But, in addition, being a poorly defined regulation, they must be able to adapt according to these changes; complicating your operations.
Previously, Binance operated almost independently of local regulations, but pressure from regulators has increased and, as a consequence, a change of plans was necessary. This is how the crypto exchange has decided to become a regulated business.
“We are pleased that Binance has received an Approval in Principle at the ADGM and are excited to support them as they work to establish their foothold and presence in Abu Dhabi, the capital of the United Arab Emirates.said Dhaher bin Dhaher, CEO of the Abu Dhabi Global Market Registration Authority.
Abu Dhabi stands out as crypto territory
It is important to keep in mind that the ADGM is a financial free zone within the capital of the United Arab Emirates. In this sense, the ADGM also assured that it is willing to offer similar regulatory approvals to other cryptocurrency companies, both local and global. At the endthe goal is to make Abu Dhabi the “fast-growing hub for virtual assets and digital economy.”
Meanwhile, Richard Teng of Binance assured that the crypto exchange is getting involved “actively to global regulators,…As part of its ongoing commitment to uphold global standards and collectively foster the sustainable development and growth of the crypto ecosystema”.
In fact, Binance previously received a cryptocurrency license in Dubai and was also authorized in Bahrain by the central bank.
Will the United Arab Emirates host a large number of crypto companies?
Different cryptocurrency companies, such as FTX or Crypto.com, have shown their interest in the Gulf states such as the United Arab Emirates; especially as they make it easier to obtain regulatory licenses to operate in them.
The problem is that it may not be the best time to establish the United Arab Emirates as an ideal destination for the crypto industry. The reason is that, recently, these were placed on the “Grey List” of the Financial Action Task Force (FATF). Basically, the FATF is a global watchdog against money laundering and, consequently, added the United Arab Emirates to the list of jurisdictions with strategic deficiencies.
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