An official announcement from the United Arab Emirates capital’s financial center confirmed that Binance will be cleared to offer cryptocurrency custodial services to professional clients once it has met the requirements for its Financial Services Permission.
Changpeng Zhao, founder and CEO of BNB, attended Abu Dhabi Finance Week before the news broke. At the occasion, Zhao shared the platform with Mike Novogratz, CEO and investor of Galaxy Digital, for a lengthy discussion that included the fallout from the ongoing FTX bankruptcy.
After receiving in-principle approval from ADGM in April 2022, Binance had already established a presence in Abu Dhabi. Consequently, the exchange was given the green light to act as a broker-dealer for cryptocurrencies and other digital assets.
The most notable of these was economist and cryptocurrency skeptic Nouriel Roubini, who at a different panel at the Abu Dhabi Finance Week made harsh remarks regarding the regulatory clearance granted to Binance.
Roubini argued that Binance being banned in the United Kingdom and ongoing investigations by the United States Department of Justice suggests the exchange is a “walking timebomb”:
“Unfortunately, this is an ecosystem that is totally corrupt. I think this is a lesson from the last few weeks, and I think these people should be out of here. I can’t believe [Zhao] and Binance has a license to operate in the UAE.”
In the midst of Sam Bankman-FTX Fried’s empire’s collapse, Binance has played an unusual role. Zhao first discussed saving FTX with his rival, but as the company’s financial situation came under greater inspection, the arrangement collapsed before FTX filed for bankruptcy.
Then, Binance spearheaded a trend to give proof-of-reserves of cryptocurrency asset holdings, which was adopted by a number of well-known exchanges. The exchange has also established an industry recovery fund with the goal of aiding projects and exchanges with liquidity problems financially.
In 2022, Binance received regulatory approvals from a number of nations, with Dubai giving the green light in September 2022. In March 2022, the exchange received regulatory approval to start providing services in Bahrain.
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