As the world’s largest crypto exchange by trading volume, Binance announced Sunday that it has received in-principle approval to operate in Abu Dhabi. With Bahrain and Dubai being its previous regulatory approvals in the Middle East, this is Binance’s third approval.
According to Richard Teng, executive in charge of Binance’s Middle East and North Africa division and a former executive with ADGM, the world’s largest cryptocurrency exchange by trading volume has not yet completed the application process.
Binance has received an in-principle approval from Abu Dhabi Global Market (ADGM) which gives the company permission to operate as a broker-dealer dealing in digital assets including cryptocurrencies. Therefore, Binance has accomplished yet another landmark for the cryptocurrency exchange which is aiming to operate as a fully-licensed company soon.
Within the capital of the United Arab Emirates, ADGM serves as an international free zone for financial activity. ADGM has historically served as a major regulatory and supervisory body for the financial services it offers. As a reaction to Binance’s efforts to secure 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.
Dhaher Bin Dhaher, the executive director of ADGM, welcomed Binance’s decision as well, promising to assist Binance in its efforts to open its first office in Abu Dhabi.
@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
As a result, if NFT trading is allowed, it will probably be necessary for companies licensed to participate in these trading to comply with ADGM’s Anti-Money Laundering (AML) and Sanctions Rules.
Amongst all the countries in which crypto exchanges operate, the UAE has emerged as a preferred jurisdiction. As part of its advantage over Binance in this competitive space, FTX, one of Binance’s top competitors has received a virtual asset service provider license in Dubai. A provisional approval has also been granted to BitOasis, the first VASP in the country to receive recognition from the regulatory body. Besides BitOasis, Crypto.com and Bybit also continue to expand their presence.
Co-founder and CEO Changpeng Zhao recently stated that Dubai will be his base for the “foreseeable future” and that by “any common interpretation” it is Binance’s headquarters. It is expected that quite a few of the company’s employees will follow his lead in relocating to the skyscraper-studded city in the months ahead.
