https://ift.tt/HFZmDWg gets in principle approval to operate in Abu Dhabi

Binance, the largest crypto exchange by trading volume, has received in-principal approval to offer its services in Abu Dhabi through its subsidiary Binance (AD) Limited. The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) granted the exchange a provisional go-ahead to operate as a broker-dealer in virtual assets.

ADGM announced this news yesterday, noting that Binance applied for Financial Services Permission (FSP) from FSRA as part of its plans to establish itself as a fully-regulated virtual asset service provider (VASP). 

Commenting on Binance’s approval, Dhaher bin Dhaher, the CEO of the Registration Authority of ADGM, said,

“We are pleased that Binance has been awarded an In-Principle Approval in the ADGM and are excited to support them as they work towards establishing their foothold and presence in Abu Dhabi, the capital of the UAE.”

He touted ADGM, saying it is the largest regulated jurisdiction of virtual assets in the Middle East and North Africa (MENA region). According to him, Binance’s participation will help improve the already vibrant and trusted ecosystem of virtual asset trading venues, global exchanges, and service providers.

ADGM accredited this development to its virtual asset framework, saying it features inclusive regulations and robust provisions that attract crypto businesses. The International Finance Center added that this framework is part of its strategy to strengthen Abu Dhabi’s economy while maintaining the transparency and integrity of the crypto marketplace. 

Binance turns to the Middle East after cold reception in other regions

Richard Teng, Binance’s Regional Head of MENA, said,

“Binance has been actively engaging global regulators, such as ADGM, as part of its ongoing commitment to uphold global standards and collectively foster the developments and sustainable growth of the crypto ecosystem.”

Apart from Abu Dhabi, Binance received obtained a fully-fledged license to operate in Bahrain in the past month. This news came months after the company got in-principle approval to function as a VASP in the country. Apart from this, the crypto exchange received regulatory approval to offer crypto services in Dubai.

Binance’s push into the Middle East comes after facing hostile regulations in other regions. Over the past year, the exchange shut down various offerings in countries like the UK and Singapore after regulators said it was not registered to provide regulated services within their jurisdictions. 

These shutdowns extended into this year, with the Ontario Securities Commission (OSC) taking action against Binance for failing to cease operations despite refusing to observe its regulatory requirements.