Binance, the world’s largest cryptocurrency exchange, has received formal approval for its global platform from ADGM's regulatory authority, as Abu Dhabi continues to strengthen its oversight of the sector.
The licence granted by the Financial Services Regulatory Authority covers Binance.com via three separate regulated entities operating within Abu Dhabi financial centre ADGM, the company said in a statement on Monday.
Each of the entities – an exchange, a clearing house and a broker-dealer – requires distinct regulatory permissions to carry out specific financial services activities.
Nest Services – soon to renamed Nest Exchange – has been approved as a recognised investment exchange (RIE), with permission to operate a multilateral trading facility, Binance said. This entity is responsible for all “on-exchange” trading activities, including spot and derivatives products.
Nest Clearing and Custody, approved as a recognised clearing house, will manage the clearing, settlement and secure custody of digital assets.
BCI – set to be renamed Nest Trading – has been approved as a broker-dealer, with permission to arrange deals in investments, manage assets, arrange custody and provide money services. This entity will deliver Binance’s “off-exchange” offerings, including over the counter trading, conversion services and other principal-based activities, the company said.
Binance.com aims to start operating its ADGM regulated activities on January 5, it said.
“This licence provides regulatory clarity and legitimacy, enabling Binance to support its global operations from ADGM,” said Richard Teng, co-chief executive of Binance.
“Achieving regulatory status through ADGM’s respected framework reflects our deep commitment to compliance, transparency and user protection.”
Binance has 300 million registered users globally with more than $125 trillion in cumulative trading volume.
Institutional onboarding at Binance has doubled in the past year, Mr Teng told The National last week, as corporates, asset managers and even governments deepen their exposure to digital assets.
Operating under ADGM’s financial services regime will ensure Binance users “benefit from high standards of oversight and consumer protection as the platform scales into its next phase of institutional and retail adoption”, the company said on Monday.
The UAE has been seeking to become a global hub for digital assets, with robust regulatory frameworks in place both in Dubai and Abu Dhabi to attract key players and offer more support for investors.
In June, ADGM also revealed more changes to its regulatory framework for digital assets aimed at reducing approval time for tokens and attracting more institutional players.
The amendments streamline the process through which virtual assets (VA) are accepted for use in the financial hub, the FSRA said. They also impose appropriate capital requirements and fees for authorised persons conducting regulated VA activities.
ADGM has been able to attract some of the biggest names, such as eToro and M2, allowing these companies to operate as a broker for securities, derivatives and crypto assets – and as platforms for institutional and retail investors to buy, sell and hold custody of virtual assets.
Having Binance operate from the ADGM “underscores Abu Dhabi’s standing as a leading international hub for innovation, sustainable growth, and the future of finance”, said Ahmed Al Zaabi, chairman of ADGM.
