Binance Gets Regulatory Nod for Custody Services in Abu Dhabi
Binance secured approval from the Financial Services Regulatory Authority (FSRA) in Abu Dhabi, allowing the crypto exchange to provide custodial services to clients. The move comes several months after Binance received its In-Principle Approval (IPA) from the Abu Dhabi watchdog to operate as a broker in digital assets.
Binance Expands its Digital Assets Offerings in Abu Dhabi With Custody Approval
Binance received regulatory approval from the FSRA in Abu Dhabi on Wednesday. The approval will allow the world’s biggest crypto exchange to offer custody to clients in the capital of the United Arab Emirates (UAE), according to a report by Zawya.
“We look forward to supporting Binance’s operations and R&D in ADGM to develop solutions for the Web3.0 economy.”– Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Global Market (ADGM) regulator.
Richard Teng, Binance’s Regional Head of MENA and Europe, said working together with FSRA “has been a highly collaborative process that underscores the value of cooperation between our industry and the public sector.” Earlier this year, Binance secured its In-Principle Approval (IPA) from the Abu Dhabi Global Market (ADGM) regulator to provide brokerage services for digital assets.
In September, FSRA and ADGM regulators unveiled their guiding principles on crypto regulation and supervision. While the principles adhere to international rules for anti-money laundering (AML) and battling the financing of terrorism (CFT), they are considered crypto-friendly.
The regulators outlined five guiding principles on ADGM’s official website, including Internationally Recognised Regulatory Framework, Dynamic and Market-Oriented Regulations, Risk-focused and Proportionate Approach, Cooperation and Shared Responsibility, Delivering High Standards of Quality & Service. The regulator also plans to work together with market participants on a “regular but informal” basis.
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Binance’s Global Expansion Continues Despite Crypto Winter
Binance’s custody license in Abu Dhabi marks the exchange’s latest expansionary effort in 2022. The crypto exchange recently expanded its Brazil operations with two new offices and obtained licenses in Kazakhstan and New Zealand.
Led by 45-year-old Changpeng Zhao, Binance continues to reinforce its position as the world’s biggest crypto exchange despite the massive crypto slump this year, which pushed crypto prices to fresh lows. The crypto downturn was exacerbated last week following the collapse of rival exchange FTX.
During his speech at Abu Dhabi Finance week, Zhao said “confidence in the industry is shaken” following FTX’s demise, adding that regulators “are going to scrutinize this industry a lot more” in the future. FTX, once a $32 billion crypto exchange, collapsed in a matter of days due to a liquidity crunch.
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