Binance, the world’s largest cryptocurrency exchange by trading volume, has acquired preliminary clearance to operate in Abu Dhabi, marking the company’s third regulatory approval in the Middle East after Bahrain and Dubai.
Binance has received preliminary clearance from the Abu Dhabi Global Market (ADGM) to operate as a broker-dealer in digital assets, including cryptocurrencies, marking yet another milestone for the crypto exchange, which aspires to be a fully-licensed company.
ADGM is an international financial free zone located in Abu Dhabi, the capital of the United Arab Emirates, which has a long history of regulatory and supervisory monitoring of financial services offered within its authority.
ADGM claimed that the IPA is part of Binance’s intentions to establish itself as a fully-regulated virtual asset service provider in an internationally known and well-regulated financial hub, in response to Binance’s efforts to get regulatory licenses around the world.
The ADGM also stated that it intends to grant similar regulatory permits for both local and international crypto enterprises in order to strengthen Abu Dhabi’s position as a fast-growing virtual asset center and digital economy.
Dhaher bin Dhaher, CEO of ADGM, praised the action and pledged to assist Binance in establishing a foothold in Abu Dhabi.
Apart from Binance, the popular crypto exchange FTX has previously received functioning licenses in Dubai, the UAE’s second-largest city after Abu Dhabi.
ADGM released a consultation document on March 22 proposing that ADGM-licensed firms be authorized to assist NFT trading in the jurisdiction.
The Financial Services Regulatory Authority (FSRA), the free zone’s top regulator, classified NFTs as intellectual property rather than specific investments or financial instruments in the ADGM consultation paper, as Cointelegraph reported.
However, allowing NFT trading will very certainly necessitate compliance with the ADGM’s Anti-Money Laundering (AML) and Sanctions Rules.