By Nathan Ferguson
The largest crypto exchange across the globe concerning the trading volume, Binance, has acquired in-principle approval on the behalf of Abu Dhabi’s regulatory authorities to operate across the state, indicating the third regulatory authorization of the exchange within the Middle Eastern area following Dubai and Bahrain.
The ADGM (Abu Dhabi Global Market) permits the crypto exchange to carry out its activities being a broker-dealer for digital assets taking into account cryptocurrencies, signifying another landmark for Binance, which deals with its determination to function as a completely licensed platform. The news of the approval was shared by ADGM on the official Twitter account thereof mentioning that the prominent among the crypto and blockchain venues across the world – Binance – has been provided with an IPA on the behalf of the regulatory agency.
ADGM’s status is that of an international financial area in the United Arab Emirates’ capital, which has a track record of playing a significant role in supervisory and regulatory watch over the financial services offered within the jurisdiction thereof. While responding to the endeavors of Binance to obtain regulatory certification throughout the globe, it was expressed by ADGM that the IPA is included in the strategy of Binance to develop itself into a completely-regulated provider of digital assets-related services in an internationally acknowledged financial center.
In addition to this, the ADGM disclosed its intention to offer analogous regulatory authorizations to global as well as native crypto firms to turn Abu Dhabi into a rapidly growing hub for the digital economy and virtual assets. ADGM’s CEO – Dhaher bin Dhaher – also appreciated the respective step by taking a pledge to support the endeavors of Binance to elevate its position in Abu Dhabi.
Besides Binance, FTX (a well-known crypto exchange) has formerly been given operational certifications in Dubai, considered to be the second-largest state in the United Arab Emirates following Abu Dhabi. On 22nd March, a consultation paper was published on the behalf of ADGM in which the regulator proposed that the companies licensed under it will be permitted to provide NFT trading services within its jurisdiction.
It was previously reported that the FSRA (Financial Services Regulatory Authority) denoted NFTs in the consultation paper of ADGM as intellectual property instead of particular financial or investment tools. Nonetheless, the permission to trade NFTs will potentially demand from the licensed firms to abide by the Sanctions Rules and AML (Anti-Money Laundering) measures.