Binance Received In-Principle License To Operate In Abu Dhabi

Binance received in-principle license to operate in Abu Dhabi and will allow the exchange to operate as a broker-dealer in cryptocurrencies so let’s read more in today’s Binance news.

Binance as the world’s biggest crypto exchange in terms of trading volume, recieved the approval to operate in Abu Dhabi which makes it the third regulatory approval in the Middle Eastern region after Dubai and Bahrain. Binance received an in-principle licnese which will allow it to operate as a broker-dealer in digital assets including crypto which marks a huge milestone for the exchange that envisions operating as a fully licensed company.

@binance, one of the world's leading #blockchain and #cryptocurrency platforms, received an IPA from the #ADGM Financial Services Regulator Authority. pic.twitter.com/jhHenzaahE

— Abu Dhabi Global Market (@ADGlobalMarket) April 10, 2022

ADGM serves as an international financial free zone in the capital of the United Arab Emirates which played a huge role in the regulatory and supervisory oversight of the financial services provided in the jurisdiction. The ADGM stated:

“The IPA is part of Binance’s plans in establishing itself as a fully-regulated virtual asset service provider in an internationally recognized and well-regulated financial center.”

The ADGM shared its intent to provide similar regulatory approval for the local and the global crypto companies to enhance its position in Abu Dhabi as the fast-growing digital assets hub and digital economy. The CEO of ADGM Dhaher bin Dhaher welcomed the move and promised to add Binance’s efforts to establish a presence in Abu Dhabi. Apart from Binance, FTX also got an operational licnese in Dubai. On March 22, the ADGM published a consultation paper that proposed that ADGM-licensed companies will be allowed to facilitate the NFT trading in the jurisdiction. The free zone’s chief regulator, the Financial Services Regulatory Authority, described the NFTs in the consultation paper as intellectual property rather than a specified investment or financial instrument.

However, the allowance of NFT tradign will require licensed companies to comply with the ADGM AML rules.

Binance US is valued at $4.5 billion thanks to the new fundraise of $200 million which will signify how serious the company is about building out the North American operations. The US subsidiary announced that it managed to raise $200 million from Circle but also from investors such as RRE Ventures and VanEck. The company called the investment a seed round which is often associated with smaller startups and said that the new money values the exchange at $4.5 billion. Brian Shroder, the CEO of the exchange said that the company will use the funding to speed up the growth of the spot trading platform and will launch new products and services but also pursue acquisitions.