Binance, the biggest crypto exchange in the world in terms of trading volume, has reportedly received in-principle approval to establish operations in Abu Dhabi.
Abu Dhabi Global Market (ADGM) provided the in-principle approval. This marks the platform’s third regulatory approval in the Middle East after Dubai and Bahrain, and this enables Binance to function as a digital assets broker-dealer which includes cryptocurrencies. The move is another achievement for the platform, which aims to function as a fully licensed company.
ADGM functions as a global financial-free zone within the United Arab Emirates’ capital, which has historically played a crucial role in supervisory and regulatory oversight of the financial services offered within its jurisdiction.
In response to Binance’s efforts to secure regulatory approvals worldwide, ADGM stated that the IPA is part of the company’s plans to establish itself as a wholly regulated provider of virtual assets in a well-regulated and globally recognized financial center.
Additionally, the ADGM shared its intention to offer similar regulatory sanctions for global as well as local crypto firms to further place Abu Dhabi as the rapidly-growing hub for virtual assets and the digital economy.
ADGM’s Chief Executive Officer Dhaher bin Dhaher promises to help Binance’s initiatives to set their footprint in Abu Dhabi.
Along with Binance, well-known crypto exchange FTX has been previously awarded licenses to operate in Dubai, UAE’s second-biggest city after Abu Dhabi.
In March, ADGM issued a consultation paper that proposed that companies licensed by ADGM will be allowed to perform NFT trading within the jurisdiction.
Sources confirm that the FSRA (Financial Services Regulatory Authority), the chief regulator of the free zone, described NFTs as intellectual property in the consultation paper rather than specified financial instruments and investments.
Nevertheless, allowing NFT trading will potentially require licensed firms to comply with the AML (Anti-Money Laundering) and Sanctions Rules ADGM.
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https://cointelegraph.com/news/binance-receives-in-principle-approval-to-operate-in-abu-dhabi