Binance Has Been Granted Preliminary Approval To Operate In Abu Dhabi.
Binance has received preliminary clearance from the Abu Dhabi Global Market to act as a broker-dealer in digital assets, including cryptocurrency.
Binance, the world’s largest cryptocurrency exchange by trading volume, has acquired in-principle approval to operate in Abu Dhabi, marking the company’s third regulatory approval in the Middle East after Bahrain and Dubai.
Binance has received preliminary clearance from the Abu Dhabi Global Market (ADGM) to operate as a broker-dealer in digital assets, including cryptocurrencies, marking yet another milestone for the crypto exchange, which aspires to be a fully-licensed company.
ADGM is an international financial free zone located in Abu Dhabi, the capital of the United Arab Emirates, which has a long history of regulatory and supervisory monitoring of financial services offered within its authority. ADGM praised Binance’s efforts to get regulatory licenses around the world, saying:
“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 stated that it aims to grant similar regulatory licenses to both local and international crypto firms in order to further promote Abu Dhabi as a “fast-growing virtual assets hub and digital economy.”
Dhaher bin Dhaher, CEO of ADGM, praised the action and committed to assist Binance in establishing a foothold in Abu Dhabi.
Apart from Binance, the popular crypto exchange FTX has previously received functioning licenses in Dubai, the UAE’s second-largest city after Abu Dhabi.
ADGM released a consultation document on March 22 proposing that ADGM-licensed firms be authorized to assist NFT trading in the jurisdiction.
In the ADGM consultation paper, the free zone’s principal regulator, the Financial Services Regulatory Authority (FSRA), referred to NFTs as intellectual property rather than “specified investments or financial instruments.”
However, allowing NFT trading will very certainly entail compliance with the ADGM’s Anti-Money Laundering (AML) and Sanctions Rules.
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