Binance, the world’s biggest cryptocurrency exchange, has been granted in-principle authorisation to operate as a virtual asset broker-dealer in Abu Dhabi.
After finishing its application process for full licencing, Binance (AD) Limited will be allowed to provide virtual asset services to consumers in the Middle East and North Africa area, the firm announced on Sunday.
@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
Growing crypto exchanges in the UAE
When it comes to cryptocurrency exchanges, in particular, the United Arab Emirates has emerged as the favoured jurisdiction.
A virtual asset service provider (VASP) licence was granted to one of Binance’s main rivals, FTX, only a few weeks ago.
There is also tentative clearance for BitOasis, the first VASP in the nation to be recognised. Bybit and Crypto.com are also increasing their footprints.
Because of the ADGM’s in-principle permission, Binance may now act as a broker-dealer for digital assets, such as cryptocurrencies, such as bitcoin.
The crypto exchange, which aims to become a fully-licensed corporation, has reached yet another milestone with this announcement.
ADGM’s Role
The international financial free zone ADGM functions as the regulatory and supervisory control of financial services in the United Arab Emirates’ capital, Abu Dhabi.
Abu Dhabi’s “fast-growing virtual assets centre and digital economy,” the ADGM plans to grant comparable regulatory permits to local and worldwide crypto firms.
The CEO of ADGM, Dhaher bin Dhaher, also expressed his appreciation for Binance’s decision, offering to assist the company in its attempts to establish a foothold in Abu Dhabi.
The second-largest city in the United Arab Emirates, after Abu Dhabi, has already granted operating permits to FTX, a significant cryptocurrency exchange.
According to CZ Zhao, Binance’s co-founder and CEO, Dubai would be his base for the “foreseeable future” and it was the company’s headquarters by “any common interpretation.” In the coming months, he expects many of the company’s workers to follow his example and relocate to the skyscraper-studded metropolis.
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