Binance, the world’s largest cryptocurrency exchange in terms of trading volume, has received approval in principle to operate in Abu Dhabi, marking its third regulatory approval in the Middle East region after Bahrain and Dubai.
The approval in principle of Abu Dhabi Global Market (ADGM) allows Binance to operate as a broker for digital assets, including cryptocurrencies, marking another milestone for the exchange, which plans to operate as a fully licensed company.
@binanceone of the world’s leading #blockchain and #cryptocurrency platforms, received an IPA from the #ADGM Financial Services Regulatory Authority. pic.twitter.com/jhHenzaahE
— Abu Dhabi Global Market (@ADGlobalMarket) April 10, 2022
ADGM serves 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 oversight of financial services provided within its jurisdiction. Citing Binance’s efforts to secure regulatory licenses around the world, ADGM stated:
“The IPA is part of Binance’s plans to establish itself as a fully regulated virtual asset service provider in an internationally recognized and well-regulated financial center.”
The ADGM also shared its intention to provide similar regulatory approvals for local and global crypto firms to further position Abu Dhabi as the “virtual asset hub and fast-growing digital economy”.
Dhaher bin Dhaher, ADGM CEO also welcomed the move, promising to help Binance’s efforts to establish its presence in Abu Dhabi.
Aside from Binance, prominent cryptocurrency exchange FTX has previously received operating licenses in Dubai, the second largest city in the UAE after Abu Dhabi.
On March 22, the ADGM published a consultation document, proposing that ADGM-licensed companies be able to facilitate NFT trading in the jurisdiction.
As highlighted by Cointelegraph, the main regulator of the free zone, the Financial Services Regulatory Authority (FSRA), described NFTs in the ADGM consultation document as intellectual property and not as “specific financial instruments or investments.”
However, authorization of NFT transactions will most likely require that authorized companies comply with anti-money laundering (AML) regulations and ADGM sanctions.
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