Binance can now operate as a broker-dealer for digital assets, including cryptocurrencies, thanks to the in-principle approval by Abu Dhabi Global Market.
Binance, the largest crypto exchange by trading volume in the world, was granted in-principle permission to operate in Abu Dhabi , marking its third regulatory approval within the Middle East region after Dubai and Bahrain.
Binance to can now operate in the role of broker-dealer for digital assets, including cryptocurrencies, thanks to the in-principle approval by Abu Dhabi Global Market. This is yet another milestone for Binance, which plans to be fully licensed.
ADGM is an international financial-free zone located in the capital of United Arab Emirates. It has historically played a significant role in regulating and supervising financial services within its jurisdiction. ADGM acknowledged Binance’s efforts in obtaining regulatory licenses around the world.
@binance, one of the world's leading #blockchain and #cryptocurrency platforms, received an IPA from the #ADGM Financial Services Regulator Authority. pic.twitter.com/jhHenzaahE— Abu Dhabi Global Market (@ADGlobalMarket) April 10, 2022
Binance plans to establish itself as a fully-regulated virtual assets service provider in an internationally recognised and well-regulated financial centre by introducing the IPA.
The ADGM shared the intention to approve similar regulatory approvals for both local and global crypto companies in order to position Abu Dhabi as a “fast-growing digital assets hub” and digital economy.
Dhaher bin Dhaher (CEO of ADGM) also welcomed the move and promised to support Binance in its efforts to establish itself in Abu Dhabi.
Binance is the only crypto exchange that has been granted operational licenses in Dubai. Dubai is the second largest city in the UAE, after Abu Dhabi.
ADGM published a paper consultation on March 22 proposing that ADGM-licensed businesses will be permitted to facilitate NFT trading in the jurisdiction.
Cointelegraph noted that the Financial Services Regulatory Authority, which is the chief regulator of the free zone, referred to NFTs in its ADGM consultation paper, as intellectual property, rather than “specified investment or financial instruments.”
NFT trading is allowed, but licensed companies will need to adhere to the Anti-Money Laundering and Sanctions Rules of ADGM.