The in-principle approval from the Abu Dhabi Global Market allows
Binance to operate as a broker-dealer in digital assets including
cryptocurrencies.
Binance, the world’s biggest crypto exchange in terms of trading
volume, received in-principle approval to operate in Abu Dhabi, marking
its third regulatory approval in the Middle Eastern region after Bahrain and Dubai.
The in-principle approval
from the Abu Dhabi Global Market (ADGM) allows Binance to operate as a
broker-dealer in digital assets including cryptocurrencies — marking yet
another milestone for the crypto exchange, which envisions to operate
as a fully-licensed firm.
ADGM serves as an international financial free zone within the
capital of the United Arab Emirates, which historically has played an
important role in regulatory and supervisory oversight of the financial
services provided within its jurisdiction. Reciprocating Binance’s
efforts to score regulatory licenses across the globe, ADGM stated:
“The
IPA is part of Binance’s plans in establishing itself as a
fully-regulated virtual asset service provider in an internationally
recognized and well-regulated financial center.”
The ADGM
also shared its intent to provide similar regulatory approvals for
local as well as global crypto companies to further position Abu Dhabi
as the “fast-growing virtual assets hub and digital economy.”
Dhaher
bin Dhaher, CEO of ADGM, too, welcomed the move by promising to aid
Binance’s efforts to establish their presence in Abu Dhabi.
Apart
from Binance, prominent crypto exchange FTX has previously been awarded
operational licenses in Dubai, the second biggest city in the UAE after
Abu Dhabi.
Related: Abu Dhabi rolls out draft recommendations for NFT trading
On
Mar. 22, ADGM published a consultation paper, which proposed that
ADGM-licensed companies will be allowed to facilitate NFT trading in the
jurisdiction.
As Cointelegraph highlighted, the free zone’s
chief regulator, the Financial Services Regulatory Authority (FSRA),
described NFTs in the ADGM consultation paper as intellectual property
rather than “specified investments or financial instruments.”
However,
the allowance of NFT trading will most likely require licensed
companies to comply with ADGM’s Anti-Money Laundering (AML) and
Sanctions Rules.
source link : https://cointelegraph.com/news/binance-receives-in-principle-approval-to-operate-in-abu-dhabi
