Abu Dhabi approves Binance as a crypto broker-dealer

On April 10, 2022, Binance received the approval of the Abu Dhabi Global Market (ADGM) to cooperate as a broker-dealer in the crypto market across the Middle East and North Africa (MENA) region. However, the exchange still needs to finalise the requirements before it can begin operations, according to Richard Teng, Binance’s company head for the MENA and former ADGM executive in an interview with Bloomberg on April 10.

Teng added that once approved, a subsidiary named ‘Binance (AD) Ltd.‘ will process crypto and other virtual asset services to customers across the MENA region. Teng told Bloomberg that Binance has been actively trying to engage global regulators like ADGM, ‘as part of its ongoing commitment to uphold global standards and collectively foster the developments and sustainable growth of the crypto ecosystem.’ 

Before Abu Dhabi, the exchange had received approval from other countries in the Middle East namely Bahrain and Dubai, the commercial capital of the United Arab Emirates (UAE). This latest development then becomes a monumental milestone for Binance as it expands in the region.

In a different Bloomberg interview held last March 30, Binance co-founder and Chief Executive officer Changpeng Zhao (CZ) shared that this year, Dubai will be a base for the foreseeable future of virtual assets. Considering this, he also expects some of the top competitors of Binance to set up their headquarters in Binance Holdings’ unofficial home jurisdiction in Dubai. Zhao said that some of Binance’s employees would follow his lead in relocating to Dubai in the next few months.     

UAE has proven itself to be a ‘preferred jurisdiction’ for crypto exchange. Similarly, FTX, one of Binance’s biggest competitors in the crypto market, received its virtual asset service provider (VASP) license in Dubai last March. The first exchange platform that gained VASP in UAE, BitOasis, also secured its provisional approval from the regulatory body. Moreover, Crypto.com and Bybit shared their desire to expand their presence in the market. 

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