Crypto Behemoth Binance Receives Three Licenses from Abu Dhabi’s Financial Regulator
The crypto world has witnessed a significant moment as colossal cryptocurrency exchange Binance has been awarded three distinct licenses from the financial regulator of Abu Dhabi, Financial Services Regulatory Authority (FSRA). These licenses make way for Binance to legally operate its exchange, clearing house, and broker-dealer services, conforming to the regulatory rules laid down by the FSRA.
The Role of FSRA
The FSRA functions as an autonomous financial regulator for the Abu Dhabi Global Market (ADGM), the financial free zone located in Abu Dhabi. Under its approval, Binance’s subsidiaries – Nest Exchange Limited, Nest Clearing, and Custody Limited, and Nest Trading Limited – are now licensed entities.
Impact of Licensing on Binance
As per Richard Teng, co-CEO of Binance, these licenses bestow regulatory transparency and legitimacy, facilitating Binance’s global operations emanating from ADGM. Teng apprised that while the operation remains distributed globally, availing talent and innovation on a worldwide scale, this regulatory foundation assures the users of peace, knowing Binance functions under a globally recognized gold-standard framework.
FSRA’s Approach
Teng also lauded the progressive approach of FSRA, which guarantees user safety while encouraging innovation. This is especially noteworthy as Binance, unlike traditional corporations, does not maintain a corporate headquarters, which typically governs their tax liabilities and the regulations they should adhere to.
FSRA Guidelines
The FSRA, in its guidance issued in February 2020, stated that authorized bodies undertaking regulated activities within the ADGM must have ‘mind and management’ operating from inside the zone. The respective businesses should allocate resources judiciously for commercial, governance, compliance, surveillance, operations, technical, IT, and HR tasks.
Advantages for Binance Users
Operation under ADGM’s financial services regime brings additional consumer protection to Binance users. It also introduces enhanced oversight from regulators, thereby ensuring better security for its users. The crypto giant is set to commence its regulated activities from January 5, 2026.
Binance’s Milestone
This regulatory approval is a significant milestone for Binance as it is the leading global exchange to secure such an approval from a respected regulator. It guarantees international operations and liquidity under end-to-end supervision.
Binance in the United Arab Emirates
Binance has already made a strong foothold in the United Arab Emirates. It obtained a virtual asset service provider license in Dubai in April 2024. Additionally, it has attracted a $2 billion investment from MGX, an Abu Dhabi-based artificial and technology venture firm, in March.
