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Babafemi Adebajo
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Cryptocurrency exchange Binance has obtained provisional approval, to broker virtual asset deals in Abu Dhabi, UAE. Otherwise known as in-principle approval, the license allows Binance to begin working towards a full license. Binance obtained approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).
The ADGM was the first to establish a robust framework for regulating virtual assets in 2018. This has unlocked new business opportunities in the UAE and improved the economy. CEO of the Registration Authority of ADGM, Dhaher bin Dhaher, said:
“We are excited to support Binance as they work towards establishing their foothold and presence in Abu Dhabi, the capital of the UAE.”
Upon obtaining full approval, Binance will be able to offer its virtual asset services to customers across the Middle East and North Africa (MENA) region. This will be done through its subsidiary, Binance (AD) Limited.
In-principle Approval Latest Regulatory Win for Binance
Indeed, since facing regulatory challenges in China, the US, and the UK, Binance has taken active steps to comply with local regulatory bodies while it continues its mission to expand its activities in the world.
In a similar form, it got in-principle approval to operate in Bahrain before obtaining a final nod to set up shop in the city last month. The firm is also in advanced talks with regulators in Dubai for a virtual assets provider license.
Richard Teng, head of Mena for Binance reiterated the firm’s commitment to the highest global standards. Despite increasing adoption, only 4-5% of the world population has adopted cryptocurrencies. Also, only 1% of the global wealth has been invested in the virtual asset class.
Teng said:
“We look forward to working closely with ADGM and other key Abu Dhabi stakeholders for broader deployment of our world-class offerings and services across the whole Mena region and beyond.”
Currently, the digital economy contributes only 4.3% of the country’s GDP. These figures will continue to increase even as more exchanges obtain approval to operate in the region. In March, FTX obtained a virtual asset license to begin regulated trading and clearing services in Dubai. Likewise, Bybit also received in-principle approval to provide virtual assets services in Dubai.
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