Binance is expanding to the Middle East with a regulatory license from Abu Dhabi Global Market's FSRA.
Binance, the largest crypto exchange in terms of daily trading volumes, has received Financial Services Permission (FSP) from the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA).
According to the announcement shared on November 16th, after granting the FSP, Binance will be able to offer custody services to its professional clients in Abu Dhabi. However, the clients first must meet Financial Services Permission conditions issued by FSRA.
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In the press release, ADGM Chairman, His Excellency Ahmed Jasim Al Zaabi, congratulated Binance on the achievement. In his statement, ADGM Chairman added that ADGM aims to make a trusted and well-regulated environment for crypto and reinforce “the UAE’s status as a rapidly accelerating global crypto marketplace.”
When commenting on the received license, Senior Executive Officer of Binance in Abu Dhabi, Dominic Longman, highlighted:
Obtaining this license is a pivotal step in the growth of Binance in Abu Dhabi, and a reflection of the city’s progressive stance on virtual assets. We are excited to continue to strengthen our symbiotic relationship with ADGM and the city of Abu Dhabi and look forward to providing institutional investors with a secure and reliable platform for their virtual asset activities.
The news about Binance’s approval to operate in Abu Dhabi was shared after the company’s founder and CEO, Changpeng Zhao, attended the Abu Dhabi Finance Week. Together with Galaxy Digital CEO Mike Novogratz, Zhao participated in a discussion panel where among other things, guests discussed the aftermath FTX’s bankruptcy will have on the crypto market.
However, not everyone in the financial sector was happy about Abu Dhabi’s decision to give Financial Services Permission to Binance. Economist and cryptocurrency critic Nouriel Roubini, in a separate panel, criticized the decision, stating:
Unfortunately, this is an ecosystem that is totally corrupt. I think this is a lesson from the last few weeks, and I think these people should be out of here. I can’t believe <Zhao> and Binance has a license to operate in the UAE.
On top of that, Roubini added that Binance being banned in the United Kingdom and being investigated by the United States Department of Justice is rather worrying, calling the company a “walking timebomb.”
It is worth noting that, in April, Binance received in-principle approval from ADGM.
