Binance secures licence from Abu Dhabi Global Market’s FSRA

It will be permitted to offer custodial services to professional clients

Binance was founded in China in 2017.  Reuters
Beta V.1.0 - Powered by automated translation

Blockchain services provider Binance said it has received a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).

The FSP enables Binance, which has been expanding in the Middle East this year, to provide custody to professional clients, provided it meets the conditions as outlined by the FSRA, Binance said in a statement.

The FSRA in September published guiding principles on its approach to virtual asset regulation and supervision to outline its expectations for the asset class and service providers in the sector.

The principles complement ADGM’s regulatory framework for spot virtual asset activities, the financial regulator said.

ADGM’s FSRA introduced the world’s first-of-its-kind comprehensive and bespoke virtual asset regulatory framework in 2018 to provide inclusive and robust rules and provisions for organisations.

"Our robust and transparent virtual asset regulatory framework is the backbone of ADGM’s strategy towards fostering a trusted and well-regulated environment that will pave the way for sustainable innovation within the financial sector and reinforcing the UAE’s status as a rapidly accelerating global crypto marketplace, with Abu Dhabi and the ADGM as the engine room powering this growth," said Ahmed Al Zaabi, chairman of ADGM.

Binance received in-principle approval from The Abu Dhabi Global Market to operate as a broker-dealer in virtual assets in the capital in April.

“Obtaining this licence is a pivotal step in the growth of Binance in Abu Dhabi and a reflection of the city’s progressive stance on virtual assets," said Dominic Longman, senior executive officer of Binance (AD).

"We are excited to continue to strengthen our symbiotic relationship with ADGM and the city of Abu Dhabi and look forward to providing institutional investors with a secure and reliable platform for their virtual asset activities."

In March, it secured a virtual asset licence to operate in Dubai after the emirate outlined clear regulations to govern emerging technology sectors such as cryptocurrency in an effort to safeguard investors.

The company also won regulatory approval from the Central Bank of Bahrain in March to operate as a crypto asset service provider in the kingdom.

In September, it won approval to join the minimal viable product (MVP) programme from Dubai’s Virtual Asset Regulatory Authority (Vara).

This allows Binance to offer a range of Vara-approved virtual assets-related services to qualified retail and institutional investors in Dubai within Vara's regulatory framework for providers.

Binance was founded in China in 2017.

Updated: November 16, 2022, 3:29 PM
NEWSLETTERS
MORE FROM THE NATIONAL