Binance announced that it has obtained provisional authorization to operate as a virtual asset broker-dealer in Abu Dhabi.
On April 10, the Abu Dhabi Global Market (ADGM)’s Financial Services Regulatory Authority (FSRA) granted Binance In-Principle Approval (IPA) for a Financial Services Permission (FSP). This is a significant step toward becoming a “fully-regulated virtual asset service provider” in the UAE capital.
Abu Dhabi is the second city in UAE to grant Binance operational approval; the company obtained a cryptocurrency license in Dubai in March 2022. Binance stated that if its ADGM and FSRA applications are approved, it will be allowed to provide virtual asset solutions to consumers in the Middle East and North Africa (MENA) region via its subsidiary, Binance Limited.
Binance has expanded into the Middle East market after being denied access in several countries. Regulators in the United Kingdom barred the company from engaging in any regulated activity.
Binance has built a reputation for itself by operating outside of local regulations. The CEO of the company, Changpeng Zhao, has been known to take pride in the fact that they do not have an official headquarters.
However, in response to criticism from worldwide authorities, it has reversed direction, declaring that it now wishes to become a regulated organization and is looking for a location for its primary offices.
Several cryptocurrency exchanges, including Crypto.com and FTX, are considering opening offices in Gulf countries such as the United Arab Emirates. The region, however, is opening its doors to the loosely regulated world of cryptocurrencies at an awkward time, as the UAE was recently placed on the Financial Action Task Force’s “grey list,” a global money-laundering monitor.
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