- ADGM has performed a major role in regulating and supervising financial services.
- FTX has also been granted operating permits in Dubai.
This is the third regulatory permission for Binance in the Middle East after Bahrain and Dubai, marking another achievement for the world’s largest crypto exchange by trading volume. Another milestone for Binance, which aims to become a fully-licensed corporation, has been reached with in-principle permission from the Abu Dhabi Global Market (ADGM) to trade digital assets, including cryptocurrency.
ADGM has performed a major role in regulating and supervising financial services as an international financial free zone in the capital of the United Arab Emirates. This bolsters Binance’s attempts to get regulatory licenses throughout the world.
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.”
Attracting Major Crypto Institutions
Additionally, the CEO of ADGM expressed his appreciation for Binance’s move by promising to assist the firm in expanding its presence in Abu Dhabi. As well as being awarded operational rights to Binance, FTX has also been granted licences in Dubai, the second-largest city in the United Arab Emirates (UAE) after Abu Dhabi. Additionally, on March 22, ideas for enabling ADGM-licensed businesses to assist non-traditional financial trading in the jurisdiction were presented in a consultation paper.
In the ADGM consultation document, the Financial Services Regulatory Authority (FSRA) referred to NFTs as “intellectual property,” not “specified investments or financial instruments.” Accordingly, ADGM’s Anti-Money Laundering and Sanctions Rules (AML and SARs) would most likely be applied to regulated entities to trade in NFTs.
