Abu Dhabi Grants Permission to Binance to Offer Custodial Services

The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has granted Financial Services Permission (FSP) to Binance, the world’s largest cryptocurrency exchange.

ADGM, an international financial hub located in the United Arab Emirates' capital city, announced the permission on Wednesday, noting that it enables Binance to offer custodial services to professional clients in the hub.

The new license comes less than two months after Binance obtained a Minimal Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA) to offer virtual asset-related services to qualified retail and institutional investors in the UAE's most populous city. In March, the exchange got a Category 4 license as a crypto asset service provider from the Central Bank of Bahrain.

'A Pivotal Step'

Speaking on the new license, Jasim Al Zaabi, the Chairman of ADGM noted that Binance with permission will be able to offer their products and services to users in the Middle East and in the North Africa (MENA) region. Al Zaabi added that they will support Binance’s operations, research and development.

“Working with the ADGM and FSRA has been a highly collaborative process that underscores the value of cooperation between our industry and the public sector,” Richard Teng, the Regional Head of MENA and Europe at Binance, said in his comment.

In his contribution, Dominic Longman, a Senior Executive Officer at Binance Abu Dhabi Limited, described the license as a “pivotal step in the growth of Binance in Abu Dhabi.”

“We are excited to continue to strengthen our symbiotic relationship with ADGM and the city of Abu Dhabi and look forward to providing institutional investors with a secure and reliable platform for their virtual asset activities,” Longman added.

Other Binance Licenses

In the past few months, Binance has been able to obtain licenses in other jurisdictions across the world as part of its expansionary efforts. In October, the exchange’s Cypriot subsidiary acquired a crypto license from the Cyprus Securities and Exchange Commission, adding to its stack of European licenses from regulators in France, Italy and Spain.

Earlier in August, the exchange’s subsidiary in the United States received a money transmitter license in Nevada. The license was an addition to the exchange's roster of similar licenses from other six states in the US.