Binance gets 'in-principle' approval for financial services from Abu Dhabi

ANKARA

Cryptocurrency exchange Binance has said it received "in-principle" approval from Abu Dhabi regulators to operate as a broker-dealer in virtual assets.

The world's largest cryptocurrency exchange said in a statement late Sunday that it was given provisional green light for a financial services permission by the Abu Dhabi Global Market (ADGM).

"The ADGM is the largest regulated jurisdiction of virtual assets in the MENA (Middle East and North Africa) region and Binance's participation will add to its vibrant and trusted ecosystem of virtual asset trading venues, global exchanges and service providers," Dhaher bin Dhaher, CEO of the ADGM Registration Authority, said in the statement.

Binance MENA head Richard Teng said "the ADGM is the pioneer in introducing robust virtual asset regulatory frameworks to support the growth of the global blockchain ecosystem."

The ADGM, the international financial center in the capital of the United Arab Emirates, said it introduced the world's first comprehensive virtual asset regulatory framework in 2018 and has since performed as a global hub and business platform for virtual asset activities for local, regional and international organizations.

While this is the second city Binance has gained approval from after receiving a license in Dubai last month, the company also received authorization in Bahrain by the country’s central bank.

However, the company faces restrictions from regulators in the UK, while its services are limited in Singapore amid possible violations of local payment systems.