Binance granted In-Principle Approval to operate in Abu Dhabi

Crypto exchange Binance has received In-Principle Approval (IPA) to operate as a broker-dealer in virtual assets in the Abu Dhabi Global Market (ADGM). With the preliminary approval, the crypto exchange is one step closer to receiving final regulatory permission.

• According to Richard Teng, the CEO of Binance Middle East and North Africa, the company still needs to finish the application procedure to receive the final approval.

• The In-Principle Approval is the initial step, and if Binance is granted a complete operating license in Abu Dhabi, the firm intends to offer its crypto services throughout the Middle East through a subsidiary.

• Dhaher bin Dhaher, chief executive officer (CEO) of Abu Dhabi Global Market (ADGM), welcomed the In-Principle Approval of Binance.

• ADGM is a prominent financial free zone in the United Arab Emirates that overlooks virtual asset service providers (VASPs). In 2018, ADGM had implemented a regulatory framework for virtual assets.

• There are over 30 VASPs that are operational in the country's free zones. There are 22 VASPs in the Dubai Multi Commodities Centre (DMCC), six at the Abu Dhabi Global Market (ADGM), and one at the Dubai Silicon Oasis Authority (DSOA).

• The centres are administered by its own governing board. The ADGM stands for the Financial Services Regulatory Authority, while the Dubai zones are governed by various agencies. The Dubai Financial Services Authority (DFSA) regulates the Dubai International Financial Centre, while the DMCC is directly governed by the Securities and Commodities Authority (SCA).

• In March this year, ADGM had rolled out a draft consultation paper to introduce the trading of non-fungible-tokens (NFTs). It had also planned to enable multilateral trading facilities (MTFs) and Virtual Asset Custodians (VAC) to operate NFT marketplaces.

• The DMCC granted FTX and Binance exchanges its newly legislated crypto license in march.