Binance Says New Abu Dhabi Licenses Are Regulatory First
Binance, the world’s largest crypto exchange by 24-hour trading volume, has secured three licenses in Abu Dhabi, and says it marks a regulatory first for the emirate.
The Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) has approved Binance.com to operate in the region through a trio of regulated entities. Together, these entities cover exchange, clearing, and broker dealer activities for the crypto exchange.
Binance’s Global Platform Receives The Regulatory Approvals
The series of authorizations, which were announced during the Abu Dhabi Finance Week, are significant because they apply to the exchange’s global platform, not just a regional section of Binance.
Under the new structures, Nest Services Limited, which will be renamed Nest Exchange Limited, has been approved as a regulated and recognized investment exchange that has permission to run a multilateral trading facility.
This entity will host Binance’s on-exchange business, which includes its spot and derivatives markets.
Meanwhile, Nest Clearing and Custody Limited has been approved as a recognized clearing house. It also comes with custody and securities depository permissions, and is therefore in charge of clearing, settlement, and the safekeeping of customers’ crypto assets for Binance.
The third entity, called BCI Limited, and is set to become Nest Trading Limited, holds a broker dealer license that covers dealing and arranging in investments, asset management, money services, and custody arrangements. This also includes over-the-counter (OTC) trading and conversion.
Abu Dhabi Licenses Give Binance A Cleaner Path To Multiple Global Markets
Binance says the approvals give it a cleaner path into multiple markets across the globe.
Richard Teng, Binance’s CEO and a former executive at ADGM, said in a statement that working under the authority’s regime is evidence of the exchange’s commitment to compliance, transparency, and user protection.
He added that while Binance continues to operate as a distributed organization that leverages global talent and innovation, the licenses will offer users peace of mind knowing that the exchange operates under a “globally-recognized, gold-standard framework.”
Abu Dhabi Growing Its Ties To The Crypto Space
The license granted to Binance is the latest move by Abu Dhabi to expand its ties to the burgeoning crypto space.
As part of a broader push to turn its oil wealth and sovereign funds into long-term exposures to digital assets and fintech, the emirate, which sits on about $2 trillion in sovereign wealth, has been steadily increasing its crypto footprint.
Recently, the Abu Dhabi Investment Council, an independently-run arm of Mubadala Investment, has more than tripled its exposure to BlackRock’s US spot Bitcoin ETF (exchange-traded fund). As of Sept. 30, its position in the ETF stood at 8 million shares worth approximately $518 million at the time.
Meanwhile, Binance has also developed direct ties to Abu Dhabi. In March this year, the company secured a $2 billion investment from the AI-focused investor MGX, which is chaired by one of the most influential figures in the emirate’s financial and security establishment.
Teng also previously called Abu Dhabi as an attractive option for Binance’s not-yet-established global headquarters.
Binance Trying To Rebuild Trust After Record Settlement
Binance has been trying to re-establish trust with its more than 300 million users ever since it settled a years-long investigation by US authorities. In 2023, the exchange paid a $4.3 billion fine, one of the largest in crypto’s history, for violating anti-money laundering and know-your-customer laws.
Binance user bases surpasses 300 million (Source: X)
As part of a plea deal at the time, Binance founder Changpeng Zhao, aka CZ, also stepped down as the exchange’s CEO and served a four-month prison sentence in 2024. He has since been pardoned by US President Donald Trump.
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